An article on UXA I found also a Q&A with UXA’s Managing Director, Dr. Russell Penney
eNewsletter April 18, 2012
Company Profile: UXA Resources Limited (ASX: UXA) UXA Resources Limited (ASX:UXA) is a diversified explorer with a pipeline of highly prospective tenements throughout Australia, tar-geting the discovery of base metals (copper, gold, lead-zinc-silver) coal and uranium deposits. UXA is also the 100% owner of GAA Wireline, a cash generating borehole logging business, operating in Australia and the USA, that provides UXA with another revenue stream channeled towards exploration. At the Dome 5 zinc-silver-lead prospect, near Broken Hill, UXA has recently completed a 2,650m infill and step out drilling program with intersections up to 3.0m at 15.8% Pb + Zn and 63ppm Ag. UXA is exploring for MVT style lead-zinc mineralization in an option agreement with Teck.
Dr Penney was appointed Managing Director of Uranium Exploration Australia Limited in De-cember 2008, and was previously CEO and Executive Director of NGM Resources Limited, a Perth-based exploration company. Dr Penney has a PhD in geology and a BA (Mod) from Trinity College Dublin and has con-ducted research at Oxford and Melbourne Uni-versities. He has worked for a number of larger mining companies including Placer Dome (now part of Barrick Gold), Pasminco, BP Minerals (Seltrust Mining Corp) and CSIRO Exploration and Mining. With BP, Dr Penney discovered the one million ounce gold deposit, Mt Olympus, near Paraburdoo in WA.
Q&A'S
Q: Please highlight UXA’s recent developments. A: We recently completed a second-round drilling program at the Dome 5 MVT-style Pb-Zn-Ag prospect in New South Wales, which revealed some further strongly anomalous Pb Zn intersections. Additionally, Joint Venture partner Straits Resources Ltd. is currently drilling for iron oxide copper gold deposits in the Olympic Dam region of South Australia. Two new directors have been appointed to UXA’s board, both with services-industry backgrounds, to help with UXA’s recently announced expansion of its borehole logging services division, GAA Wireline.
Q: What are the plans for UXA moving forward in 2012? A: UXA is preparing to resume exploration for uranium mid-year (start of the field season) at Nabarlek and Pandanus West in the Northern Territory with JV partner Reliance. UXA is also preparing to launch an exploration program for Broken Hill-style Pb-Zn-Ag and IOCG-style Cu-Au deposits on its Mundi Plains project in New South Wales later this year.
Q: Please discuss the update on the company’s cash position and value of investments. A: The Company has in place a convertible note which it is drawing down on a monthly basis. A new financing arrangement worth up to AU$7.55 million was announced in April. The value of the company’s investment in GAA Wireline is currently under-appreciated in the market. By increasing profitability and expanding the business it is expected that the real value will once again be recognized in the wireline business.
Q: How many projects do you currently have and what are the stages for each one? A: UXA currently has three major projects, all in the pre-discovery phase: ? Stuart Shelf – South Australia: an iron oxide-copper-gold JV operated by Straits Resources Ltd. (currently drilling). ? Mundi Plains – Junction Dam: Pb-Zn-Ag and Cu-Au prospects in New South Wales and South Australia. UXA is operating drilling programs to follow up on previous mineralized drill intersections, and earning in through an Option Agreement with Teck. ? Nabarlek Uranium Project: a JV with Reliance in the Northern Territory. Drilling programs are forthcoming.
Q: Who are your competitors, and what distinguishes your company from others in your space? A: The Company has exclusive rights to exploration licenses, so there is no competition once a tenement is granted. UXA stands out from the crowd by having joint ventures with major companies (Teck, Reliance, and Straits). Within the borehole wireline services industry, GAA has many competitors in both Australia and the US, and a relatively small share of a very large industry. Nevertheless, GAA is able to distinguish itself from its competitors by the high quality of professional service and advice it provides to customers, and through its exclusive ownership and provision of the unique Prompt Fission Neutron tool, for di-rectly measuring uranium in boreholes.
Q: Who are the key players on your management team, and what experience do they bring to the table? A: UXA’s exceptionally qualified management team includes: ? Dr. Russell Penney, Managing Director, has 30 years + international exploration experience with major companies, and was formerly MD of NGM Resources Ltd (now part of Paladin). ? Simon Powell, Exploration Manager, formerly with BHPB, is a geologist with 27 continuous years of hands-on experience in exploration and mining for gold, base metals, industrial minerals and uranium throughout Australia. ? David Quinn, CEO GAA Wireline, formerly with Schlumberger, has 10 years of experience in the application of technology and services within the oil and gas industry and has worked throughout the Middle East, US and the Asia Pacific region. ? Andrew White, Chief Financial Officer, CPA, formerly with Newmont Mining Corporation, is a CPA with over 18 years’ experience managing the financial aspects of mining, exploration and energy companies, including business acquisitions in the USA.
Q: Who are the major shareholders of UXA? A: UXA has a very open share registry, but substantial shareholders include: JP Morgan Nominees Aust. Ltd, 3.2%, Dr. John McMahon, 3.0%, Alcardo Investments Ltd., 3.0%, Ayres Investments Pty Ltd, 2.6%, and CS Fourth Nominees Ltd., 2.2%.
Q: What growth prospects does UXA have? Are there any other key developments? A: UXA’s subsidiary GAA Wireline recently announced a significant expansion and plans to double the size of the company over the next two years. Additionally, UXA just secured a funding arrangement with Lind Partners of New York for a package of up to $7.55 million, which will assist in advancing UXA’s exploration projects, particularly at the exciting Mundi Plains – Junction Dam tenements (Joint Venture with Teck).
UXA Resources’ CFO Andrew White will be presenting at the HiAlpha™ Energy Investment Conference on April 25, 2012.
