CUY 0.00% 14.5¢ curnamona energy limited

annual report steady

  1. 5,001 Posts.
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    The annual report is OK - cash burn is about $800K p.a. given we have more than 8.5 million this is satisfctory.

    CUY is about to submit its MARP to PIRSA - Bob has been meticulous about this - I expect we will get a tick from PIRSA.

    We can expect CUY to commence construction of the FLT soon after MARP approval -

    2008 has been a quiet year for CUY. A comination of toxic markets, and delays in regulatory approvals has cused this - who knows, the latter might turn out to be a blessing. I'm expecting a much better 2009.

    CUY has the funding, the expertise, and the resource to run a successful FLT. I think we can reasonably expect the market to get reinterested in thsi stock over the coming months.


    From the AR - Chairman's statement:

    Dear Shareholders
    Uranium was one of the first commodities to be driven by the whims of speculators in recent times
    as first it rose to excessive heights, only to be dumped as these same speculators beat a hasty retreat
    barely twelve months later. The decimation of uranium stocks, including Curnamona Energy, has been
    completed by the present world financial market turmoil.

    Yet ironically, the outlook for uranium has never been brighter, with large numbers of new nuclear
    power stations being constructed around the world and many more on the drawing boards. Most Asian
    and European countries really have no choice but to build nuclear generating capacity if they are to
    meet their projected future power demands. Therefore, while uranium prices have weakened in the
    short term, the long term outlook is strong as many new nuclear power plants come on stream.

    Throughout this period we have resolutely stuck to our strategy of advancing the Oban project to a
    point where we have a granted Retention Lease over the deposit and are close to lodging our mining
    and rehabilitation programme for the field leach trial. This has been a long-winded process requiring
    extensive field research and documentation and public consultation, which is mandatory for the project
    to proceed. We will move quickly to carry out the field leach trial once approval is given, and expect
    to start construction of the plant within weeks.

    In parallel, we have maintained an active exploration programme and found additional uranium
    mineralisation at Oban, and extended our knowledge of other areas especially to the northwest of
    Oban. Once we have Oban into production we are confident of expanding our resource base and
    successfully growing the business. Government policy remains strongly in favour of uranium mining
    in South Australia and we do not anticipate difficulties gaining export permits from the Federal
    Government for any commercial mining operation.
    One of the Company’s great strengths is its field team who week in and week out go about
    systematically drilling exploration holes on our extensive tenement holdings, giving us a significant
    competitive advantage over our peers. They have worked extremely hard this year, and we expect
    they will make an even greater contribution next year as we drill many production test holes into the
    Oban deposit for the field leach trial.

    Therefore, on behalf of shareholders I would like to sincerely
    thank our field crew and all the contractors and consultants who have so ably worked for us this year.
    It remains our aim to achieve first uranium production from Oban as soon as possible, subject only
    to meeting all the regulatory approvals. We are in the fortunate position of having sufficient capital
    to begin development of Oban, and a self-contained exploration and development capacity.

    While
    much of the attention has gone from the uranium sector, in situ recovery uranium mining remains a
    very attractive financial proposition. The minimal capital and operating costs will ensure a profitable
    outcome once we are in production.

    Yours faithfully
    Bob Johnson, Ph.D
 
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