I have chosen AGS Alliance Resources for my Uranium pick for 2008 & beyond, & here's an outline for my decision.
And to back my judgment I managed to top up with a further 65,000 shares at .92 on last weeks close, so fingers crossed that we see a rally in share price next week & beyond, actually couldn't believe my luck in the final Hour of Friday's Trading.
Seems many have still failed to understand Four Mile West exceptionally High JORC Resource Grade of .37% (3700ppm) .05% (500 ppm) Cut off & extremely Low Forecast Production ISL Costs of around $10.00 P/Lb. & most importantly Free carried by Quasar.
Fantastic High Grade Intercepts continue at Four Mile East, Including :
5.40 m @ 0.85% 8500ppm pU3O8 (AK370)
1.20 m @ 1.10% 11000ppm pU3O8 (AK371)
2.40 m @ 0.62% 6200ppm pU3O8 (AK372)
4.00 m @ 0.26% 2600ppm pU3O8 (AK373)
5.30 m @ 0.21% 2100ppm pU3O8 (AK376)
2.50 m @ 0.71% 7100ppm pU3O8 (AK382)
2.50 m @ 0.90% 9000ppm pU3O8 (AK386)
4.50 m @ 0.47% 4700ppm pU3O8 (AK395)
1.50 m @ 1.13% 11300ppm pU3O8 (AK398)
2.60 m @ 0.53% 5300ppm pU3O8 (AK442)
1.85 m @ 1.94% 19400ppm pU3O8 (AK445)
5.20 m @ 0.33% 3300ppm pU3O8 (AK447)
4.70 m @ 0.69% 6900ppm pU3O8 (AK447)
1.10 m @ 1.53% 15300ppm pU3O8 (AK453)
2.85 m @ 0.84% 8400ppm pU3O8 (AK470)
3.85 m @ 0.35% 3500ppm pU3O8 (AK477)
2.35 m @ 0.60% 6000ppm pU3O8 (AK482)
2.90 m @ 0.44% 4400ppm pU3O8 (AK487)
3.75 m @ 0.28% 2800ppm pU3O8 (AK489)
4.10 m @ 1.69% 16900ppm pU3O8 (AK505)
2.10 m @ 0.61% 6100ppm pU3O8 (AK519)
2.60 m @ 0.62% 6200ppm pU3O8 (AKC006)
0.70 m @ 1.67% 16700ppm pU3O8 (AKC009)
4.0 m @ 0.43% 4300ppm pU3O8 (AK545)
1.4 m @ 0.97% 9700ppm pU3O8 (AK548)
2.9 m @ 0.49% 4900ppm pU3O8 (AK563)
1.8 m @ 1.09% 10900ppm pU3O8 (AK565)
3.2 m @ 0.82% 8200ppm pU3O8 (AK567)
1.9 m @ 0.60% 6000ppm pU3O8 (AKC016)
2.5 m @ 1.15% 11500ppm pU3O8 (AKC018)
0.7 m @ 2.51% 25100ppm pU3O8 (AKC019)
1.3 m @ 0.94% 9400ppm pU3O8 (AKC025)
2.1 m @ 1.84% 18400ppm pU3O8 (AK586)
2.2 m @ 0.46% 4600ppm pU3O8 (AK586)
3.9 m @ 0.57% 5700ppm pU3O8 (AK594)
2.3 m @ 0.60% 6000ppm pU3O8 (AK598)
3.7 m @ 1.12% 11200ppm pU3O8 (AK600)
3.2 m @ 0.37% 3700ppm pU3O8 (AK601)
2.8 m @ 0.57% 5700ppm pU3O8 (AK603)
2.5 m @ 1.00% 10000ppm pU3O8 (AK604)
1.3 m @ 1.14% 11400ppm pU3O8 (AK605)
1.4 m @ 2.09% 20900ppm pU3O8 (AK609)
4.2 m @ 0.41% 4100ppm pU3O8 (AK614)
7.6 m @ 0.26% 2600ppm pU3O8 (AKC029)
You may well ask what do the above grades mean !!! well many junior uranium companies would rather you didn't know this. That's why they spend most of the time waving their arms about the number of pounds they have, while mumbling under their breath when it comes time to discuss grade. But a quick calculation - using the current uranium spot price of $65.00 Per Lb., with a comparison to the gold grades that most resource investors are familiar with -- shows how grade affects the economics of a deposit:
0.03% U3O8 = $40 a tonne/rock (equivalent to 0.045 oz/tonne gold)
0.3% U3O8 = $400 a tonne/rock (0.45 oz/tonne gold)
3% U3O8 = $4000 a tonne rock (4.5 oz/tonne gold)
30% U3O8 = $40,000 a tonne/rock (45 oz/tonne gold)
When you consider AGSs Four Mile West Deposit has been calculated at an average grade of .37% 3700ppm (Resource calculated at a cut-off at .05% 500ppm), its no wonder the Resource has been classified as World Class.
In Comparison Bannermans Goanikontes Jorc resource of 72Mill Lbs has been calculated at an average grade of .023% 230ppm and (calculated at a cut-off at .01% 100ppm)
The previously reported Jorced Four Mile West Resource covers less than 20% of the potential Mineralization with an initial resource expected for Four Mile West & East, of around 70 to 80Mill Lbs in the 3rd Qrt of 2008, with a potential of attaining a resource of beyond 120Mill Lbs
AGS will very likely have two operations in progress over the coming 18 Months namely their Maldon Gold project & Four Mile Arkaroola J/V project with Heathgate/Quasar..
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Cheers to all AGS Holders from grant64
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Special Note : Is that the Long term Uranium Contract Price has recently fallen last week by $5.00 to $90.00 P/Lb, with the Current Spot price unchanged at $65.00 P/Lb.
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