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From The Desk Of Nick Nicolaas
Alert #40
SIGNIFICANCE OF T�SJ� PROJECT AND RECENT DRILL RESULTS EXPLAINED
August 15, 2007
Dear Friends:
There are some questions investors have with regard the vast T�sj� project and exploration target in Sweden (between 104 to 116 million pounds of U3O8, 165,000 to 180,000 tonnes of REE and 5.63 million tonnes of P2O5 *).
One of the questions received was:
�With such low results as parts per million, is this worth it, or am I not interpreting these results correctly (Most other U explorers report in % or pounds per ton)?�
Here is the answer we provided the Mawson investor:
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�Thank you for your email.
The grades at T�sj� (250-300ppm = 0.025-0.03% = 0.5-0.6 lbs/short tonne U3O8) in a worldwide sense are low but are well within range of many economic deposits. In Namibia, Bannerman Resources quotes an inferred resource of 27Mlb @ 186ppm U, Uramin�s Trekoppje project is quoted at 110ppm (this was the main project Areva appears to have been interested in during its recent cash takeover of Uramin) and the Rossing mine of Rio Tinto operates at 300ppm. In Australia, for example, the Lake Maitland project�s grade is 255ppm U. In fact in a worldwide sense, T�sj� is one of the highest grade uranium in phosphate deposits known (see http://www.wise-uranium.org/purec.html). A general confusion in the uranium business is that there is no standard for reporting uranium results. See http://www.wise-uranium.org/cunit.html to explain conversion units.
The T�sj� field is geologically analogous to the Florida Phosphorite Uranium Province, which contains the largest uranium resources in North America. In Florida, uranium occurs in carbonate-fluor-apatite at a grade of 0.007�0.0125% (70-125ppm) U3O8 (average 0.009% or 90ppm) and has been recovered as a by-product in the manufacture of phosphoric acid fertilizer. In 1988, two phosphoric acid manufacturing plants recovered approximately two million pounds of U3O8 (21% of U.S. production for 1988) from the phosphate rock mined in Florida.
Grade is a critical factor in any mining operation. Low grades are only viable when cheap mining and processing costs prevail and the scale warrants their extraction (i.e. deposits must be large). In other words the lower grade a deposit, the cheaper mining and processing costs (i.e. proximity to surface, low stripping ratio) are required to make it economic.
Certainly at T�sj� the mining optics appears to be favorable, with the mineralized horizon extending from surface to 40m depth at this stage (Mawson does not look deeper as they are interested in the near surface potential). The scale of T�sj� is extensive � Mawson has defined the horizon with scout drilling and geophysics over 20km and they have indications the mineralized unit extends more than 40km. The processing costs are unanswered, and in our minds this forms the real risk at this stage of the project�s development. For this reason Mawson are undertaking metallurgical test work with these drill samples. You should also be aware, based on successful metallurgy, that the credits from rare earths potentially could double the in-ground value of the contained metals.
I trust this helps you understand the upside and risks associated with this (and other) mining projects.�
END
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With its stellar projects in Spain, Finland and Sweden, we feel that Mawson is an excellent
Uranium investment opportunity -- especially at today�s share price!!!
(Click Here for Mawson�s 2-page Overview and Portfolio of Significant Uranium Projects)
Regards,
Nick L. Nicolaas
* NOTE: �Based on 80 historic drill holes and the report, Geological Investigations in the T�sj� area in 1963 and 1964 (G. Armands, Swedish Atomic Energy Company). This exploration target estimate is based on the aforementioned report. The potential quantity and grade is conceptual in nature, as there has not been sufficient exploration to define the target at this time; and it is uncertain that further exploration would result in the definition of a resource. The magnitude of the exploration target was confirmed in a recent independent NI43-101 technical report by Andrew Browne of Geosynthesis Pty Ltd, the current qualified person at the Jabiluka uranium project in Australia, after a review of Swedish Geological Survey documentation, a field visit and check analysis of core samples.�
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