Here is my summary of the arguments for and against investing in NGM. Make up your own mind and DYOR to verify. (Note: If I have missed anything or made any mistakes then let me know and I will update)
NGM explorer in - Uranium (Niger), - Fe (Madagascar), - Coal (Niger)... Maybe
Pros: ======
Tim Mercoi Basin - Tarkardeit (Niger) ------------------------------------- 1. Maiden at Takardeit-West Jorc 23mt @ 210ppm (or 11m lb U308). Upper target is 80m lbs resource over 2.7 x 2.1km in area so far.
2. Tarkardeit West: U is wide spread, shallow with majority within 5m of surface. Like an alluvial fan to the west
3. Outcrops on Takardeit central and north small mesa's with U to 15000ppm
4. Flat land, sandstone close to surface easy to mine with minimal or no blasting.
5. Takardeit East - Discovery of layered U channel at depth. Possible feeder channels to the western alluvial U fan). Best 11.7m @ 783ppm
6. Takardeit deposits open to the north and east
Tim Mercoi Basin - Aouligen (Niger) ----------------------------------- 7. Recently discovered layered U (best 3.6m @ 2000ppm) at depth of less than 70m over a 1.5km strike and open to the north.
8. 11 holes planned to north of this area were not drilled due to unsuitable of rig for the terrain. Will get new rig and drill September 2010
9. 15 km north of Takardeit
10. Will drill for coal core at Anou Aaren in this tenement as nearby coal deposits run onto NGM Tenements (used for local power station)
Mahanoro - Madagascar ---------------------
11. Exploration target of 1.5bt Fe (itabirite coarse grain) good for beneficiation
15. In discussion with JV parties interested in investing in project.
General ------- 16. Acquired Ex Aviva (French Uranium Major) Land after Niger Govt reassigned it.
17. Major land holding in World Class Uranium Province Tim Mercoi Basin (3 permits totalling 1500km2)
18. Detailed aerial radiometric?s flown over whole tenement
19. Bitumen road running through middle of all Niger tenements and through middle of some deposits. Also power supply nearby.
20. Skilled labour force in relation to U mining. Agadez major town close by (15km) with international airport.
21. Quick turnaround from exploration to drill given low level of govt regulation approvals required.
22. Paladin has 20% stake and increasing (did the same for Valhalla in Queensland eventual bought it outright).
23. Pro U Govt. With 2th largest operational U mine in world called Imouraren (also in Tim Mersoi Basin).
24. Many anomalies Id?ed by aerial survey not drilled yet.
25. Market Cap at 9.5c of $17m (undiluted)
Cons ===== 1. Low average Grade due in part to thin mineralisation envelop and Low Cut off chosen by company ie, 100ppm.
2. Political Volatility in Niger. Recent coup to oust prime minister who tried to have referendum to increase his term in office (..which was contrary to the constitution of the country). Military plans to return to Democratic rule asap.
3. In southern Sahara desert . Limited exploration possible in northern summer
4. Distance to Coast/port, ie, its a long way.
5. Mineralisation runs up to and is open past eastern boundary (Who owns land to the East?)
NGM Price at posting:
9.5¢ Sentiment: None Disclosure: Held
