Yep! On the results of drilling at Dome 5 (expected later in the year) and at Nabarlek North (expected shortly for preliminary results of second drilling phase; shortly on REE results on first drilling phase; and later on REE results in second phase). Only upside is that GAA Wireline are doing the drilling at both prospects so cash stays within UXA's 100% owned subsidiary.
GAA Wireline Australia appear to be doing so well that UXA themselves have to wait for drilling vehicles to come available to drill in the Canning Basin.
UXA are using their $1.6m to pay for 51% costs of drilling and assay results in Arnhem Land. It is thought that RIL Australia (a Reliance 100% owned subsidiary) may move to a 70% interest to give further cash to cover drilling costs beyond 2012.
A tricky position for UXA as failure at Dome 5 would present difficulties and put drilling for gold and copper in doubt. Success would lead to a possible buy back of interests by Teck and others which would fund further drilling and reduce the percentage costs going forward. All is on success by Dr Penney MD who gets an excellent pay package if all goes well - HELL he needs to come up trumps here, no doubt about it.
UXA need the stock price above 1.5c and nearer 2c to be able to unload some stock - Mr Penney, 'buck up please and find a commercial mine!'
Sentiment 'short term buy' on a drilling speculation basis and a general recovery to continue this week in the mining sector'.
UXA Price at posting:
1.3¢ Sentiment: ST Buy Disclosure: Held
