Who called DIT at $0.25 on November 10th?Ditem Exploration (DIT-TSXv)
With only a $5m market cap and a monster land package that surrounds Strateco Uranium (RSC-TSXv - $200M market cap) you would think this will get going sometime. They actually sold Strateco their ground thinking it was the least prospective of the Matoush Mountain land they had. Strateco has had some of the best uranium numbers pulled out of Canada this year outside of the basin and trades like a gem. Ditem management clearly is not as capable to tell the story, but I would imagine sooner or later it will get some joy. I recently bought a bunch more because the charts started turning, it is cheap and I do like their Matoush Mountain play. This is probably the cheapest uranium punt out there. Why is it so cheap? Probably managements lack of focus or some other unkonwn reason. I don't mind sitting on it a few months to see if it can trade higher as the marker recoginizes proximity to that play.
Crescent Resources (CRC-TSXv) - Last at $0.50
Apologies to my readers for the lack of postings. More unfortunately I missed letting you know about two monster wins; Blue Pearl Mining - BLE-TSX now at $8 (I bought it $2) and Energy Fuels EFR-TSXv now at $3.50 (I bought at $1.50 two weeks ago). While I do think BLE will be $20 next year, I’m not buying it now (nor the warrants, ble.wt.a). EFR has an excellent chance at being a near term uranium producer in the US and has a management team that has operated uranium mines before. I know that doesn't do you any good now, I will try to be more diligent in bringing new stories to you in a timely manner.
I will give an update on deals that we are covering after this small word on new uranium company I have backed up the truck on.
Crescent Resources (CRC-TSXv) - Last at $0.50
Crescent recently acquired a bunch of uranium claims in Paraguay. They can earn a 70% interest in 500,000 hectares they believe host uranium grades that may be amenable to ISL Mining. The property has had 65 drill holes with 21 intersecting significant uranium grades (they haven't told us what those numbers are yet). These sandstone deposits tend to be very large, with consistent continuity of grades. In neighboring Brazil, these same sandstones contain numerous uranium occurrences including the Figueira mine that reportedly hosted approximately 19 million pounds of U3O8.
ISL grades do not have to be high. Urasia Energy produces uranium at an average grade of 0.06% at a cost of under $10 per pound. The project apparently surrounds the property that CUE.P picked up as well and I expect to see a technical report on the project out in the not to distant future. My information tells me that a very powerful promoter will be behind CUE.P, and it will also be a strong deal – giving the whole play a lot more profile. This CUE.P report could tell us quite a bit more about the land package and possibly give Crescent a valuation boost if it comes back positive.
Bottom line is uranium stocks in general are going higher. The ones with the best sponsorship will do the best. There is currently only a $9M market cap with 18m share out - they are raising just under $4m at $0.50 cents. Very smart money has been soaking up the stock here. Don Halliday is behind the deal - which we remember well from Sunridge Gold (SGC-TSXv) and Nevsun Resources (NSU-TSX). Institutions love this guy and I imagine some good sponsorship will come with financing that is being done.
Please find below and update on some older stories of ours.
Hathor (HAT-TSXv) Last at $1.25
Hathor shareholders are pleased; the stock continues to perform well on good volume recently testing old highs. They continue to work on all their projects aggressively and I personally believe they have the best shot of a new discovery out of all the uranium explorers in the basin. The Midwest NE project lies some 800m NE to the shallow high grade Mae Zone discovery by Denison and Cameco. The Cigar lake disaster (which I don't need to go into) is going to continue to squeeze uranium market and being able to go after shallow deposits will only further reward you company if a discovery is made.
What I like best about this story is that there won't be a drill hole in the ground to ruin this story for quite some time. With 6-8 months of further promotion and telling the story, this one could continue to run. Kind of reminds me of the Titan Uranium (TUE-TSXv) which has done so well. $0.40 financing becomes free trading in a few weeks, but am very impressed by how well it is trading at these levels with buyers knowing that paper is coming due so soon. All bets are off if it breaks $1.50 with conviction.
Global Copper (GLQ-TSXv) Last at $2.55
The stock is a dollar higher from where we started buying the stock. We are happy. Ross Beatty is a work horse and newlstter writer Doug Casey got on the story as well, giving this an added push. Thanks to team behind Global Copper, the stock continues to trade well and make us money. These are the teams we like to get behind - sometimes the timing isn't always right but sooner or later things work in our favour.
International Nickel Ventures (INV-TSXv) Last at $1.60
This company has given us some handsome returns. Good team, good projects great trader. I have taken out my capital and riding the rest for free. Again, the market is only paying small for the company’s 20% JV interest with Teck at Santa Fe/Ipora – for the stock to really move INV needs a discovery on one its own 100% owned lands
Coastport Capital (CPP-TSXv) Last at $0.92
This stock did have a great run initially but has seen a major correction as they pulled the rigs off the property. Great holes were encountered on a new zone on La Plata. Rigs should be back on the property shortly and the story will get told. Ecuador is turning out to be a very hot area and Coastport could make it even more popular with any new zones discovered. Good promotional team and trading at about half of its year highs. Apparently (actually in a press release somewhere, the Canaccord and Haywood analyst both took down the $0.90 financing themselves. That had me sold to get in.
Watch Resources (WR-TSXv)
This gassy pig has hurt my pocket book but finally looks like it is going in the right direction again. It is doing a 5 for 1 rollback but will be financed to acquire 100% of the projects and start drilling campaign they have talked about for 6 months now. With a better share structure, a good institutional group (JF Mackey) behind the deal, if WR can continue to have technical success, I will probably be able to make a profit on this down the road. But I’m not looking for much of a profit to exit – with the trust take-out game gone now, these companies will have operate more conservatively and grow slower.
Lynden Ventures (LVL-TSXv)
I have always liked the play that they have and always thought that if it could be successfull there would be some big numbers on this stock. It appears that the well is showing some very good signs of success but still isn't a home run yet. Once again, a piggy gassy stock. (How come these low gas prices haven't resulted in cheaper heating bills for my home???)
Fury Explorations (FUR-TSXV)
35 cents a share cash, good advisory board building, waiting for Nevada drill results.
Ditem Exploration (DIT-TSXv)
With only a $5m market cap and a monster land package that surrounds Strateco Uranium (RSC-TSXv - $200M market cap) you would think this will get going sometime. They actually sold Strateco their ground thinking it was the least prospective of the Matoush Mountain land they had. Strateco has had some of the best uranium numbers pulled out of Canada this year outside of the basin and trades like a gem. Ditem management clearly is not as capable to tell the story, but I would imagine sooner or later it will get some joy. I recently bought a bunch more because the charts started turning, it is cheap and I do like their Matoush Mountain play. This is probably the cheapest uranium punt out there. Why is it so cheap? Probably managements lack of focus or some other unkonwn reason. I don't mind sitting on it a few months to see if it can trade higher as the marker recoginizes proximity to that play.
I am no longer holding
Impact Silver, Energold - good stories but thought it was dead money for awhile.
Happy Prospecting,
Markus Day
If you wish to be emailed when I post a blog, let me know! profitprospector@shaw.ca