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Our geologist, Rebecca Paulka, has estimated from the earlier exploration that the Malian prospects have a 30% likelihood of containing economic quantities of uranium ore, the Niger properties have a 25% likelihood but the WA prospect has only about a 10% likelihood of containing economic ore. The directors have therefore decided to concentrate exploration activities in Mali and Niger.
The discovery of an economic ore body is likely to be worth about $30m to FJE as we can sell it on to a larger company. Rebecca has said that the best way to start would be to conduct an aeromag survey in both Mali and Niger, and André's advice is that this would cost about US$100 per square kilometre in both countries. An aeromag equipped aircraft would be available in about 3 months in Mali and in about 2 months in Niger. Set up costs would be about $20,000 in each case.
We have about 1,500km2 of exploration territory in each of the two countries and a survey would only take a few days. Rebecca would do the analysis as part of her normal work.
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