More from Malcolm Shaw . . . At Seeking Alpha:
I don't think hole 66 will blow anyone's mind, as the mineralized interval is relatively thin compared to other high grade zones. It's important in that it shows mineralization is present in that area, but beyond that it's not likely to be an earth-mover for me.
As you point out, summer drilling is not far away... perhaps a little over a month. There is a lot of follow-up drilling to do on existing zones, as well as testing new targets. It's early days, but the 780E zone had some decent sniffs in the core based on the scintillometer. I don't expect much from the existing 780E holes, but the fact that there's mineralization in that area (combined with the very thick section of alteration) makes me optimistic about the potential there and in the nearby targets.
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Based on historical transactions and rule-of-thumb, it is my opinion that $10 per pound is the right number to use. Gold credits, if significant, could perhaps tweak that a bit, but the depth and grade of the uranium are much more important than any potential byproducts. There haven't been any comparable deposits found in the last 30 years or so in terms of this combination of grade and depth, so that's something to consider.
The macro-economic tailwinds are starting to blow, and the recent incident at Areva's Somair mine in Niger really highlights the security-of-supply issue and the external costs associated with some jurisdictions. I have yet to see an official report on damage at that mine, but it appears that production is offline for now. It could take 6 days, 6 weeks, or 6 months to fix the machinery depending on the scale of the damage. That's about 4-5% of world supply offline. With HEU expiry looming and Japan looking set to start talking about restarts in July, the stage is set for uranium prices to start to move. Current prices are too low to encourage new mine development for all but a handful of operations and reactor new builds and applications continue at a feverish pace.
I'd have written a new article again today, but it would say much of the same as I have said before. Today's results were interesting in that the 00E zone was generally viewed as the "lower grade cousin" of the 390E zone until today. 20.5m at 8.5% U308 is a spectacular hole, and shows that the 00E zone has true potential for high-grade mineralization. I believe that FCU and AMW remain significantly undervalued relative to Hathor on a historical comparative basis, despite the fact that the early Patterson Lake data appears to exceed the early Hathor data in almost every respect.