UXA - UXA Resources

[frankie_boy]

Re: UXA - Uranium Exploration Australia

A small investor might punt $3,000 to $6,000 and three directors bought shares within these figures for 3.1c - 3.3c a share. If the Chairman and MD had added 2,000,000 shares each I'd pay attention ($62,000 each).

Yup... Punter...

And its jumped slightly today..

 

[noirua]

What are UXA Resources really worth? At 3.2c a share they languish with a market cap of only $10.2 million and the stock price is way down from the high in 2010 of 19c and the all-time high of 52c, and of course this years high of 6.8c.

A lot of money was paid for the Aussie side of GAA without PFN tool, $5.8 million including stamp duty and stock - looking over the top now.
The American drilling arm of GAA and PFN tool worldwide cost about US$3.2 million - looking a good buy.
Yes you've noticed it, the whole package above cost $9 million against market cap of $10.2 million - if and it is a big IF, UXA pull the drilling side back together then everything else is in there for nothing.

Quite a lot of drilling going on now and areas at Dome 5 NSW, Yambla NT and just recently Nabarleck North, NT (should have started drilling by now), have drilling underway now. Way behind schedule now but Yambla may come in first with results fairly shortly as GAA Wireline have PFN Tool and Dome 5 a little later.

UXA have other interests but the above are seemingly more important.

 

[noirua]

UXA have completed drilling hole DF09 at Dome5, NSW, which proves a mineralisation thickness of 3 metres continuing from previously drilled hole DF02 for a distance of 250 metres. Assay results will be available in 11 days time.
Hole DF10 will be completed later next week.

 

[noirua]

UXA's cash raising appears a bit early in the circumstances as assay results from Dome 5, NSW are not available yet.
Fair enough, raise money for further exploration but doing it right now leaves questions to be answered.
1) If results are good then doing the cash raising at only 3.1c a share looks to have been done in a rush.
2) Why has cash raising had to be done so quickly after the last placing at 4c a share?
3) Are losses at GAA WIRELINE Australia Limited continuing and putting pressure on the exploration side of the company?
4) Would UXA be prepared to sell the USA operations to raise cash? - one part of the company that is doing well with new contracts.
5) Are UXA preparing to exit the JV with RIL Australia in The Northern Territory for cash and future royalties?

Fair questions I think as the placing was sprung on UXA shareholders very quickly indeed. $500,000 is a smallish sum and is this only the start of future further cash needs?

On the otherhand, prospects in NSW and nearbye SA are looking fair and just maybe a find of Copper, zinc, lead or silver could cement a mine of some kind together. UXA may still find, if this came about, that they have to sell a major interest to maintain cash reserves.

 

[noirua]

UXA shareholders await the results from drilling outage hole DF10 at Zone 5, NSW.
Hole DF09, within the 1k square area, came up with 3.45% zinc at a 3m thickness and around 320m deep - nothing better than expected and possibly mildly disappointing.

 

[noirua]

UXA shareholders await the results from drilling outage hole DF10 at Zone 5, NSW.
Hole DF09, within the 1k square area, came up with 3.45% zinc at a 3m thickness and around 320m deep - nothing better than expected and possibly mildly disappointing.

UXA have announced that they will be reporting the results from The Assay Office on holes DF10, DF11 and DF12 drilled at Dome 5, NSW very shortly.. Two areas have been discovered at DF10 that shows zinc/lead and covers a total thickness of about 2.8 metres.

Hole DF13 is at present being drilled and will be followed by DF14 and hole DF15, the latter in a different new area.

Cash in hand is at $3.63 million.

Geoscience Wireline and PFN USA are doing well with two drilling two year contracts.

 

[frankie_boy]

Has this eaten a tank at all since the Germans announcement of "No Nukes" by 2022?

 

[noirua]

UXA have announced that they will be reporting the results from The Assay Office on holes DF10, DF11 and DF12 drilled at Dome 5, NSW very shortly.. Two areas have been discovered at DF10 that shows zinc/lead and covers a total thickness of about 2.8 metres.

Hole DF13 is at present being drilled and will be followed by DF14 and hole DF15, the latter in a different new area.

Cash in hand is at $3.63 million.

UXA have announced results for drilling at Dome 5, NSW. Basically, the find at hole 11DF12 was very good and at holes 11DF10 and 11DF11 rather disappointing [previous drilling recently at 11DF09 had good depth in Dome 5 terms though % of nickel a trifle disappointing). UXA are targeting a resource of zinc and lead at 5 million tonnes and they are about 15% of the way there. Only about 10% of the area is drilled so far by Teck Resources and UXA Resources, so they've a longway to go yet.
Silver resource is generally on target and fairly promising. [more on the resource shortly]

 

[noirua]

Has this eaten a tank at all since the Germans announcement of "No Nukes" by 2022?

UXA haven't found any uranium yet of any significance. They have put out their 7 tenements in South Australia to Straights Resources with a right to buy back in if a good find is made.

UXA are drilling at Dome 5, NSW for zinc-lead and silver for a 5 million tonne resource and and will move on to a nearby tenement in S.A, prospective for Copper-Gold.

UXA's uranium tenements are at Yambla, N.T., Canning Basin, W.A. and in Arnhem Land, N.T.

UXA's priority has moved from uranium to Gold, silver, copper, zinc, lead and REM.

 

[frankie_boy]

UXA haven't found any uranium yet of any significance. They have put out their 7 tenements in South Australia to Straights Resources with a right to buy back in if a good find is made.

UXA are drilling at Dome 5, NSW for zinc-lead and silver for a 5 million tonne resource and and will move on to a nearby tenement in S.A, prospective for Copper-Gold.

UXA's uranium tenements are at Yambla, N.T., Canning Basin, W.A. and in Arnhem Land, N.T.

UXA's priority has moved from uranium to Gold, silver, copper, zinc, lead and REM.

Ah ok. I just wondered if it had much to do with it, especially after it jumped 20% when the Australian AUSTRALIAN Resources and Energy Minister Martin Ferguson backed the use of uranium/nuclear for the future.

 

[noirua]

Ah ok. I just wondered if it had much to do with it, especially after it jumped 20% when the Australian AUSTRALIAN Resources and Energy Minister Martin Ferguson backed the use of uranium/nuclear for the future.

Well there may be something in what you say though UXA are proving to be walking through very deep swamps in making progress towards a find in the last 6 years. Dastardly awful performance on that front.

Profit should come from Geoscience Wireline in the next tax year. From the six monthly report the USA side could make around US$1 million and the Aussie side should scramble home something around A$1 million - this is on the hope QLD's weather is good next year.

Will UXA break even next year? I doubt it. Cash is around $3.5 million and $500,000 is set to be expended at Dome 5. $1.6 million is ring fenced for the JV with RIL Australia. There are salaries and overheads that should take care of the rest and exploration in the Canning Basin, WA and at Yambla, NT.

So UXA really need a find, commercial that is.
Hopefully the profit from Geoscience could prevent UXA going for yet another placing.

 

[frankie_boy]

Well there may be something in what you say though UXA are proving to be walking through very deep swamps in making progress towards a find in the last 6 years. Dastardly awful performance on that front.

Profit should come from Geoscience Wireline in the next tax year. From the six monthly report the USA side could make around US$1 million and the Aussie side should scramble home something around A$1 million - this is on the hope QLD's weather is good next year.

Will UXA break even next year? I doubt it. Cash is around $3.5 million and $500,000 is set to be expended at Dome 5. $1.6 million is ring fenced for the JV with RIL Australia. There are salaries and overheads that should take care of the rest and exploration in the Canning Basin, WA and at Yambla, NT.

So UXA really need a find, commercial that is.
Hopefully the profit from Geoscience could prevent UXA going for yet another placing.

seems as though the sp has reflected this, though am surprised on the amount it has fallen in the last 2 weeks.

 

[noirua]

seems as though the sp has reflected this, though am surprised on the amount it has fallen in the last 2 weeks.

UXA is indeed a problem stock. Valued at under $6.3m at 1.8c and that is less than the $8.7m paid for Geoscience Wireline Australia and USA, as well as PFN Tool.

UXA had $3.53m in the bank 2 months ago but have loans around $3m.

Markets don't have much confidence in the companies set-up.

 

[frankie_boy]

UXA is indeed a problem stock. Valued at under $6.3m at 1.8c and that is less than the $8.7m paid for Geoscience Wireline Australia and USA, as well as PFN Tool.

UXA had $3.53m in the bank 2 months ago but have loans around $3m.

Markets don't have much confidence in the companies set-up.

So where to from here you think? By the look of that SP there is no confidence at all

 

[noirua]

So where to from here you think? By the look of that SP there is no confidence at all

Only bullish thing I've seen is "Aussie Bulls' who give a 'buy-if' signal for UXA.
Probably cheap with most other minnows in the sector and they could suddenly strike a commercial find, but then again, so could most of the others.
'So where to from here', well, may recover well with the whole mining mini-sector.

 

[frankie_boy]

Only bullish thing I've seen is "Aussie Bulls' who give a 'buy-if' signal for UXA.
Probably cheap with most other minnows in the sector and they could suddenly strike a commercial find, but then again, so could most of the others.
'So where to from here', well, may recover well with the whole mining mini-sector.

Dome result? was up 20% today

 

[noirua]

Dome result? was up 20% today

Unfortunately the Dome result was poor for the last 3 holes drilled and I can't see it being commercial on its own. UXA are to move to drilling for copper and gold at the next opportunity not far away. UXA say they'll continue drilling at Dome 5 but depth is over 300 metres and seam width is poor, needs a boost in zinc and lead prices as well as silver to make it viable, me thinks.

Nabarlek North looks a good opportunity if they find uranium close to Uranium Equities' find at Nabarlek East, only 280 metres away. UXA start drilling in August this year and Uranium Equities start drilling about now to firm up their uranium resource.

Pluses and minuses on Nabarlek. The area, note the old Nabarlek Uranium Mine now closed, has been for quite short operational finds for 7 to 8 years mine life. Having said that, finds are close to surface and can be dug out very quickly indeed.
So short life mines but low cost is a plus as other mines are forced to close as the uranium price falls close to US$50 per lb.

Are UXA cheap at 2.4c a share? No idea despite holding a lot of stock! But they are a low market cap so any commercial find is going to propel the share price. They have additional drilling interests meant to be profitable 'Geoscience Wireline USA and Australia' and fund exploration; unfortunately the QLD disaster forced a $1.2m loss in the first half.

 

[frankie_boy]

Unfortunately the Dome result was poor for the last 3 holes drilled and I can't see it being commercial on its own. UXA are to move to drilling for copper and gold at the next opportunity not far away. UXA say they'll continue drilling at Dome 5 but depth is over 300 metres and seam width is poor, needs a boost in zinc and lead prices as well as silver to make it viable, me thinks.

Nabarlek North looks a good opportunity if they find uranium close to Uranium Equities' find at Nabarlek East, only 280 metres away. UXA start drilling in August this year and Uranium Equities start drilling about now to firm up their uranium resource.

Pluses and minuses on Nabarlek. The area, note the old Nabarlek Uranium Mine now closed, has been for quite short operational finds for 7 to 8 years mine life. Having said that, finds are close to surface and can be dug out very quickly indeed.
So short life mines but low cost is a plus as other mines are forced to close as the uranium price falls close to US$50 per lb.

Are UXA cheap at 2.4c a share? No idea despite holding a lot of stock! But they are a low market cap so any commercial find is going to propel the share price. They have additional drilling interests meant to be profitable 'Geoscience Wireline USA and Australia' and fund exploration; unfortunately the QLD disaster forced a $1.2m loss in the first half.

Well you certainly have done your homework on this company and full Kudos to you. You make for very interesting reading.

 

[noirua]

UXA Resources are looking a might better now with the Nabarlek North drilling starting in August and Uranium Equities drilling just 280 metres away in July at their uranium find at Nabarlek East. At last UXA could do well at drilling with a low cost uranium producer and the chance of rare earth minerals.

There appears some determination in MD Dr Penney's recent report in making a zinc/lead/silver mine out of Dome 5, NSW. Further drilling is being followed up closer to the two very high grade zinc and lead finds.

Geoscience appear to be pointing to a $500k profit in the first half of 2011/12 Financial year and $1.2m in a full year.

 

[noirua]

Near everything is on a uranium find in Nabarlak North close to the shallow uranium find at Uranium Equity's JV uranium find at Nabarlek East. A good find in this shallow area would greatly effect Uxa Resources.