This is quite a difficult one to decide on. As mentioned, Nabarlek drilling is taking place and Dome 5 further drilling due to start again soon.
Nabarlek North is close to the Bullroarer find at Nabarlek East. Find is at extremely shallow levels, 3 to 5 metres deep, but uranium results are not that great. See Uranium Equity's drilling results on their website.
If mining stocks rally then UXA stock should as well, the reverse could happen but not that likely at these levels.
How much of the rights issue will be taken up as foreigners are excluded. So basically, watch the stock price until the last minute and try and gauge the take-up.
If worse comes to the worse then UXA may consider floating the drilling arm 'Geoscience Wireline' and retaining a 51% stake. Again though, foreigners would be excluded from a new issue. This may be worth around $3 million (for 49%)giving earnings at 16.5% (forecast) gross return to shareholders.
UXA Price at posting:
1.8¢ Sentiment: None Disclosure: Held
