Thursday, August 26, 2010 10:09:24 PM
JB: Jim, we have the majority share of the highest grade ura-nium district in the entire United States, based on past production. Using what we believe to be a conservative success ratio of 18%, which is also based on the history of past production, of the 350 breccia pipe targets or pipes, as we refer to them, we should end up with more than 60 viable mines. With the conservative assumption that these 30 contain 5 million pounds of uranium each, we would produce a gross amount of about 300 million pounds of uranium which, at the current price of about $130 per pound, would be worth approximately $39 billion. Because each ton of ore contained about 16 pounds of uranium, the value per ton at today’s prices is about $2,080, not including any credits for by-product metals, which could include copper, zinc, vanadium, silver, and others. This uranium content has a dollar value equivalent to about 3.2 ounces of gold. Now, this is extremely profitable to mine and we think that this will come directly down to our bottom line, which will affect our stock price and be very, very beneficial to shareholders.
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