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UXA Resources Managing Director Dr Russell Penney Answers Questions At One2One Investor Forum In Sydney

UXA Resources' (ASX: UXA) managing director Dr. Russell Penney fielded answers during Question Time at last night's Proactive Investors' 'Stars in 2012 Series' in Sydney, Wednesday 14th March.

The presentation on the night can BE ACCESSED HERE.

UXA Resources currently has three active drilling programs, and partnerships with some of the largest mining companies in the world, including:

- Reliance Industries; India's largest listed resources company;

- Teck Resources: Option Agreement with Canada's largest mining company; and

- Straits Resources: a joint venture with this diversified miner.

Question from the audience

Will the current $1.2 million capital raising program (a SPP to close 5 April 2012) be enough money to get stuck into all of your projects?

Dr. Russell Penney

I think for a start, we do have some money set aside in an escrow account, which is part of the Reliance joint venture, which is money which originally came to UXA back in 2007 to pay for our share of that exploration.

So that (the money) will fund our share of the drilling in the Northern Territory this year. The Straits Resources (ASX: ARQ) drilling isn't costing us anything, and essentially we need additional funds for drilling on the Tech project.

We also have some money coming in from the La Jolla note which is a monthly amount of $250,000 which is covering working capital, and that runs on until July.

There isn't any question that later on in the year we will have to raise more money to fund further drilling. Our ambitions are very big, and I am hoping we will have some results along the way that will help us with that.

Question from the audience

(The next question was in relation to proposed drilling costs which can been seen on slide four).

Dr. Russell Penney

These are not for a specific program but more an estimate on costs (for drilling programs). But once you make a discovery, and you go into a phase of drilling out a deposit, then you are talking out tens of millions of dollars to drill out the deposit.

If you make a discovery you go into a whole new world, as with excellent drill results your share price goes up and you ability to raise capital is changed out of all recognition than it is now.

Question from the audience

Over in South Australia, does Straights Resources have any tenements of their own other than their joint venture with UXA Resources?

Dr. Russell Penney

Yes. Straights Resources has a couple of other joint ventures in South Australia that they have been working on, and they also have a mine and a significant tenement holding in New South Wales, they are copper miners, and they have a gold mine in Kalamitan.

They just raised $65 million of which I understand $6.5 million is dedicated to exploration, which includes out project.