RE: Urekea.... Uranium Resource Estimatesureka: "It is what opened my eyes to how far JNR has to go to have an economic deposit"
jeez - I thought it was perfectly obvious from the start that determining an economic deposit would require a lot more work!
the preliminary nature of development is perfectly well documented on the JNN website, based on the exploration and drill work done to date.
as a matter of fact, I said as much on my first encounter with JNN, in response to Megphi's questioning of UEX's value vs JNN:
" SUBJECT: RE: Patience - megphi Posted By: BlindBoy
Post Time: 6/13/03 21:49
I don't currently own JNR, but I've been checking it out.
I do own UEX, primarily because of Cameco's position in the company.
I agree that JNR has come up with some good showings on some of it's properties, especially the 0.40m @ 12% intercept.
However, I haven't seen anything to indicate that JNR has defined established reserves?
My response to the past two rounds of drilling by UEX was also purely negative.
However, your own JNR website states "When drilling, you want to intersect uranium mineralization, but it is important to remain optimistic if significant quantities of pathfinder elements are intersected because then, you have a better understanding of how close you just might be . . ." - this is precisely the way UEX interpreted the results.
Also, you fail to mention that UEX's properties are "host to two deposits with drill defined resources, Raven-Horseshoe and West Bear, which collectively contain approximately 24 million pounds of U3O8. Resources were calculated historically by Gulf Minerals Canada Ltd"
Bottom line is that UEX's properties are not necessarily trash.
At the same time, the potential of JNR's properties might well represent an interesting capital risk, especially considering the market price of the stock.
It's definitely on my radar screen now."
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Bottom line is that the overwhelming majority of junior resource stocks trading under a buck trade primarily on potential, not reserves, at least at this stage of the game.
Good uranium deposits are very difficult to find, and the intercept that JNN encountered was one of the best on any non-developed uranium properties in recent decades. This translates to "potential".
Certainly no guarantee, but, unlike you, I don't mind the risk at all.