Sunday Morning Post - Great deposit with more Speculation Sunday Post – PLS a Great Deposit with Tons of Speculation Upside
This week there was a lot of discussion on the board about the price of uranium, when, and how it will change the price for the deposit or getting a return on the investments. The documentary which was aired on CNN, was also discussed in length. I had seen that documentary earlier this year. Another zone was also found. It seemed to have some reaction but faded somewhat as the week went on
. Uranium Price: Here is my opinion about the price of uranium. It doesn’t really matter that much when it comes to PLS, except for the fact that if was sky high now, investors would make a whole lot more money. The majors that would consider buying the deposit know it’s going up. They have stated it, and making business plans around it. It is simply supply and demand. Right now some buyers have some sellers over a barrel, and are taking advantage of it. This is short lived though, despite of how many Japan reactors come on board. The new starts planned already will change the market. The ending of the American-Russian nuclear weapons deal changes it. That gives the increase in demand along with Japan. If the price stays low, more mines will shut down operations, or go out of business. That result in turn will change the supply. It must go up, period. When the tipping point happens, I believe it could be dramatic, although a little more time needed is likely. In my opinion there is no way this goes for less than $7-$8 a pound in the ground, which is the bottom, and goes up from there. When looking at an open pit, no matter what the price, the dollar per ton of rock mined, is something that every conventional miner that has operated an open pit would die to have.
Pandora’s Promise For the average person that never knew anything about nuclear, watching Pandora’s Promise must have been an eye opener. For people that did know, it was nice to see the whole argument laid out in a documentary. It clearly shows that so many long term decisions, good or bad, are made for political, business interests, or the sign of the times. Also when people are set in beliefs, almost cult like, it hard to change their minds. You can see what happens when a whole country gets behind it like France, how it can actually reduce emissions. If all the different interests put all their energy into new generation reactors (including small pebble), the safety around them, and storing solutions, it would mean big reductions in carbon emissions for the planet. I won’t hold my breath though, that is trying to turn a big ship in the water.
Speculation This week another zone was found, the quality of it yet unknown. It created a spike in SP, but it was short lived, but did seem to confirm the change in trend. When it was happening, I noticed something that happens a lot on stockhouse. The news on a great discovery, big development on an established discovery, creates posting on the area plays show up pumping the nearby speculation plays. What is great about PLS is that risk is already gone, and it’s about infilling and confirming a huge unique deposit. But it is also still a great speculation play on more deposits found on the exact same property. Some of the area plays may find something and they may not. One of them Nexgen probably has a better chance than some. It ran up from 26 cents in the summer to 60 cents, but now it is back to 28ish. Same thing happened with the properties around Zen, but with much more wild swings on 2 cent stocks.
On the FCU board, the ballooning in posters seems to come in waves, which each momentum. The great boards though a lot of the time end up with the original group (while expanding), steadfast on their investment thesis and others moving on. Some of the same posters still around from April (I don’t think I posted then), Bridgetonowhere, nosleep, wintersun, letsgetready, losecash, bullman, torriddog, sirknighter, and more I can just raddle them off because I read their names so much over the past 6 months.
There are massive speculation plays still available on the PLS property. The longer this company can explore the better it gets. It has enough money to do a ton of drilling. Here are the all the speculations that add torque to the possibilities. Here is the speculation, with some of the points coming to fruition, “more bags” are possible, as in 2,3,4,5 bagger depending on the entry point. As I stated before I just hope we stay around long enough to speculate.
- The spinco – Most of people know, but you basically get to exploration properties in the area next to PLS for free, because no real value has been added to the share price. PLN and Clearwater. They also have the drilling paid for by the JV partners. This was the exact same plan with Alpha, now have 2.
- The discovery on land, holds the speculation on its own. It seems that a fault has changed spread out some of the zone. It also can be a completely different anomaly to build on, with the possibility of more zones on a different line. We have the one NR release; many more holes are already drilled. We will know more in the next few weeks on this spec play
- More exciting to me is even further discoveries on the same property. After reviewing the data from radon readings, ground surveys, and various comments by the geologists, there are 10 more good prospective areas to look for zones. How many could they find? Who knows, but I would rather put my money on this exploration team, on the same property, then a property further away with different people. It is almost ridiculous at the hit rate of this exploration team.
- Joining of the zones 390E and 780E. If these zones join it will add many thousands of pounds to the discovery. When you look at the radon lake readings on 780E, they are relatively small compared to 390E. Yet the great length and grade of the holes shows it is still a great pod. This has to do with the depth of the zone. The great length of 585E of intercepts shows that this will be a pod, and has good chance to join 390E.
Have a good week!
Cheers
Presclubs.