What a Run...(so far)
Wednesday, November 29, 2006
My oh my...what a run we have had. Just when it appeared we
may have over extended ourselves, the juniors get a second wind and kept pushing
upwards. As predicted, winter brings now only that cold Canadian front down
through the states, but also drill rigs to the frozen Saskatchewan/Labradorian
uranium lands (if Labradorian is not correct we apologize, however we shall
continue to use it until correct...ignorant people shall stay ignorant until
corrected!). Those rigs provide cores which in turn provide a steady stream of
news flow. We have seen many of our favorites “perk” up as they have begun, or
shall soon begin to drill on their properties. OilsandsQuest (formerly Canwest
Petroleum) has seen its share price jump $1 over the past few weeks, Pitchstone
has more than doubled from our call to double our holdings at the bottom,
Canalaksa is up nearly 25%, Ur Energy has doubled and SXR has been up almost 90%
in the past few weeks.
Yes fireworks have been flying, but this is not the time to
take profits, not even short-term profits (although there will be a time for
that in the coming months). We shall stick to our favorites, and will soon add a
few new GEMS to our portfolio in the coming weeks. This is a new field with new
opportunities appearing all the time, it is our duty as investors to determine
which offer the best risk-to-reward ratio and then seize the opportunity. Our
previous post added some new stocks to our portfolio, but we did not give any
reason for the additions. We apologize, but must confess that we were busy and
our computers were giving us some problems (think Murphy's Law).
We added a new soon-to-producer in a very friendly mining
country. This stock was FSY, otherwise known as Forsys. It trades on the Toronto
know and has the Valencia Deposit in Namibia. Yes this country is in Africa, but
it is much like South Africa in that it is very stable. In fact it is ranked on
par with Canada as far as political stability is concerned (remember the
French-Canadians want Quebec to form its own territory and become a free
standing country). Paladin operates in this country as well as Rio Tinto through
its huge Rossing Mine, so the country has a history in this field, and
infrastructure in place and nearby.
Next we recommended ESO, which intrigues us very much so.
It reminds us of OilsandsQuest when we first bought due to its low price, but
most importantly a nice prospective piece of land with a successful drill
history. This company will approach this drilling season much the same way
Oilsands did last year's; drill around what you know is historically there and
then pan out. There is a historical drill core that returned approximately 3.14%
U308 on this land and the company plans to drill 3 holes around that one using
modern techniques. Keep in mind that this land is in close proximity to Cluff
Lake, which seems more and more likely to be the next Super Deposit.
Finally we added SSE and SAN, which are Silver Spruce
Resources and Santoy respectively. Both companies have large prospective
landholdings in Labrador and seem to be well positioned around uranium
occurrences and known deposits. These are speculative plays, but give you a
large area to drill around and find some yellowcake.
We still expect many of the uranium juniors to double from
these prices and have a good run through the New Year. When we stop buying, we
will notify you, just as we will when we begin to move back out of some of our
positions accumulated for speculation. Until next time, keep your head on
straight and refrain from panicking on pull-backs, those have shown to be the
best time to accumulate.