RE:RE:RE:RE:RE:Pounds Don't Matter Whether or not RRR is further along is debatable as you are comparing apples to oranges. Comparisons are difficult, largely due to differences in grade and continuity of mineralization which impact confidence in determining inferred and indicated, and required drill hole spacing to make those judgements. For example, very tight drilling on a 15 meter or less basis is required at RRR because of the lower average grade and more erratic nature of mineralization. At NXE's high grade sub zone, 100% of infill drill holes to date have held up, indicating an increase in grade, size of zone and contained pounds of uranium. On a statistical basis, this will no doubt move the high grade resource from inferred to indicated, and on 25m drill hole spacing versus 10m-15m spacing at RRR. Back to RRR, drilling other targets doesn't make sense as they would have to be developed separately and after the existing conceptual mine plan. Neither do zones 600W or 840W separate or together, appear large enough to be stand alone projects. Even if they did eventually become large enough, separate PEA's, and pre-feasibility studies would be required. Both have similar problems to RRR in that they are overlain by 50-100m of ground water saturated sand, gravel and till, suggesting that expensive engineering solutions may also be required to develop. Also, these other zones are so many years away that NPV is close to zero, so why keep drilling? Wouldn't it be better to focus on the $20 million geotechnical work program recommended by RPA to gather the information required before initiating a pre feasibility study? By the way, I have also made similar agruments at Arrow, suggesting that drilling outside of NXE's Arrow zones 1-4 doesn't make much sense at this time, because if other significant zones are found, they are so many years away the NPV's are close to zero, so why drill outside the main Arrow zone?
Greenday wrote: @ teevee - By no means is RRR completely derisked but it is further along in the process than NXE or say PTU for example. Moreover, if PTU, NXE, and FCU all had exactly the same drilling hit, the probability is that the hit would have the most impact on PTU's share price. If CCO was including in that list, that same hit may have next to no impact on CCO's share price (depending on the size of the hit of course). To CCO the additional pounds might not matter but at the same time CCO trades on the market at a higher P/NAV because it's less risky. So some analysts have suggeted that FCU has reached the stage of development where a hit doesn't have the same impact on it's share price that it once did, but that the derisking process will be recognized by the market with continued drilling success. A updated PEA is thought to be one of the milestones in the process. If you believe the concept, it should extend at some point to NXE as well. If I'm not mistaken the market took back NXE's last reporting so the process may have already begun and if NXE reports on Monday and Thursday's gain is taken back by the market then it might not be a coincidence.