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Purepoint Uranium Group Inc V.PTU

Alternate Symbol(s):  PTUUF

Purepoint Uranium Group Inc. is a resource company engaged in the acquisition, exploration and development of properties for the purpose of producing uranium. Its flagship project is the Hook Lake joint venture with Cameco and Orano, and the Smart Lake joint venture solely with Cameco. Together with its flagship projects, the Company operates nine advanced projects within the Athabasca Basin in Canada. Its projects include Hook Lake Project, Smart Lake Project, Red Willow Project, Turnor Lake Project, Henday Project, Carson Lake Project, Russell South Project, Tabbernor Block, and Tower Project. The Company also holds the VHMS project, which is optioned to and strategically positioned adjacent to and on trend with Foran Corporation's Mcllvena Bay Project. The Hook Lake Project is located approximately 75 km south-southwest of Orano Canada Inc. The Smart Lake property includes two claims with a total area of 9,860 hectares situated in the southwestern portion of the Athabasca Basin.


TSXV:PTU - Post by User

Bullboard Posts
Comment by moon56on Jan 22, 2017 8:15am
281 Views
Post# 25738373

RE:RE:Question to Nosleep and Wireframe22

RE:RE:Question to Nosleep and Wireframe22Hi Wireframe 22.  Thank you so very much for your sharing.
Now I see more clearly how one can estimate share value.

For a clarification, though, I think you used $10/lb takeout value assumption, not $11/lb, to come up with $0.22 - $0.44 share price range.
It seems that if $11/lb used, then $0.24 - $0.48
No?
Moon 56, with much appreciation.

wireframe22 wrote:
Hey Moo56,

I'd be happy to share my calculations with you.

User image

Note:
- This calculation is totally back of the envelope with everything being in the realm of educated assumptions. The pending Drill results will help us discern a better understanding.
- This assumes that the entire Harpoon - Spitfire Zones are consolidated under the Areva/Cameco/Purepoint venture for the resulting ore value of $420M - $840M PTU Share.

The value of the 250m strike zone on PTU side of the fence if we assume the exact same depth and width and that the vein is continuous would be approximately half coming in at $210M - $420M

With PTU net share float count at ~190M, and using the $11/lb takeout value assumption on the estimated U308 4.2M – 8.4M lbs (PTU Share from NXE fence line to Spitfire discovery hole only), that puts the share price at a range of $0.22 – $0.44.

User image

This entire calculation exercise to date has assumed that the vein that is showing at Harpoon is continuous in depth and width with a hard stop at the Spitfire Discovery hole.

This is why I am excited for this year’s winter drill program because it will show if the vein starts to widen or increase in depth on its way to the Spitfire Zone Discovery. The other excitement factor is for whether or not the Vein continues North Eastward towards the Hornet Zone that my previous post covers.

Arrow and Harpoon/Spitfire Resemblance

I echo Summon3r’s sentiments when he mentions that he is on the edge of his seat for the pending drill results I expect out for the end of the month.


Bullboard Posts