projects & valuation as at 15,dec, 2010

Current MC=12.2 million, 3.9c/share.

Cash on hand roughly 1c/ share (suppose no revenue from GAA).

Projects:

1, Dome 5, Mundi Plains, NSW.

I know most people donot like this project, me too.
This is the main reason the SP drop from 5c to 3.9c.

However, as Dome 5 is so close to Broken Hill and only 55km to railway, we really cannot ignore its huge potential.

UXA has a target of 5Mt @ 12%Zn, 4%Pb, 30g/t Ag this equals 0.8 million tonne ZN&Pb metal, 5.2 million ounce Ag.
Market value = $2.2 billion

40% of this IGV= $880 million.

Once UXA's target is proven, its 100% sure Dome 5 will be mined in next few years--- only to railway.

but, atm I value Dome5 project -0.3c/share.( UXA has to spend 1.2 million before it can withdraw.

upside potential(if target proven):
shoule be worth $15-30million. =5-10c/share.

2, Geoscience Associates Australia & Prompt Fission Neutron (PFN) technology

Purchased price= 5.5m +1.3 + 1.8m= $8.6 million.

= 2.75c/share= my valuation.


Upside potential:
As we all know, there will be more U3O8 exploration activities, because the U3O8 price up 40%. If UXA can operate GAA & PFN well, I believe the true of this business should be double the purchase price= $17.2 million.= 5.5c/ share.

3, SA - Stuart Shelf ?C deep Iron Oxide Copper Gold (IOCG) targets. JV with Straits. Straits can earn 70% by spending $10m on exploration over 7 years. This is easy to calculate: 70% of exploration value= $10m, so the rest 30% is worth $10/7*3= 4.29 milliom=1.4c/share.

Upside potential: 5-20c/share.

4, Nabarlek North U3O8 project. JV with top 500 world company.

As Exploration will start in May 2011, currently I value Nil.

Upside potential
5-50c/share.


5, Yambla - Harts Range Uranium and HREE project, Northern Territory.

Previously results:
anomalous uranium up to 1,440 ppm and confirmation of the presence of Terbium, Dysprosium and Yttrium.

Now 200 samples just acquired.

As the results due in next 30 days, I value Nil.

upside potential:
5c-20c/share.

Conclusion:

I believe the fair value is based on cash + 2,GAA&PFN + 3, SA - Stuart Shelf

=1c+2.75c+1.4c
=5.1c/share

upside potential= cash +1+2+3+4+5
=21c/share ---101c/share

welcome any comments!

Thank you for your reading!

Good luck!