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GREY:STHJF - Post by User

Comment by Ulvetanaon Oct 05, 2012 3:06pm
248 Views
Post# 20454144

RE: Roca Honda ALL in cost

RE: Roca Honda ALL in cost

Conventional production costs ($/lb) are higher than what you indicate.  Number is in the $60-65 range.  Your CAPEX is low (two large/deep production shafts, dewatering, water treatment facility for discharge, etc....) and your grade too high (no account for dilution).  Long term U3O8 price needed to provide an acceptable (but not necessarily good) IRR for the project is in the $80-90 range.

Also, the new zone you cite, is based on one drill hole.  Although the trend probably continues over a long distance with grade distribution typical of sed hosted uranium, the grade drilled to date is an outlier and therfore must be treated as such until further drilling is completed.

I'm not downing the project - I think it is a good one - but the numbers have to be painted realistically.  In the end STM and URRE need to join up either on this project, or at the corporate level to provide shareholders with the potential value of the greater Roca Honda deposit - ~50MM lbs +

 

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