Lakeland Resources Ord LRESF

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Jonathan Armes (President & CEO of Lakeland) noted the following yesterday: “We are excited to report on these results today, as they confirm the potential for a significant uranium discovery at the Gibbons Creek Uranium Property. Of particular interest are the extremely high ‘Radon’ values reported by RadonEx, which to our knowledge, are the highest ever reported for the Athabasca Basin area.” Lakeland’s land-based RadonEx values are with 9.9 pCi (picocurie) around 10 times higher as what Fission Uranium Corp. measured with their prolific Patterson Lake discovery. In the Athabasca Basin, it was proved numerous times historically: The higher the RadonEx values at surface, the higher uranium enrichment below surface. Additionally, yesterday’s press release reported that a recently conducted sampling program now confirmed the presence of a whole field of radioactive boulders at surface on the Gibbons Creek Property. Assays of eight boulders were reported with values between 1% and 4.3% U3O8. The source of these many and high-grade boulders is likely to be on the property – the same was the case with other large and high-grade uranium deposits in the Athabasca Basin, including Fission Uranium’s latest Patterson Lake discovery. On Dec. 4, 2013, Lakeland allowed Declan to option 70% of Gibbons Creek by spending a total of $6.5 million for exploration over four years, paying $1.5 million in cash and issuing 11 million shares to Lakeland. While Lakeland is currently valued with a market capitalization of solely $5 million, Declan already trades at $16 million (figures before market opened today). However, Lakeland not only owns the Gibbons Creek Project, but also numerous other large and highly prospective uranium properties in the northern part of the basin, whereas Declan holds some precious metals claims in Sierra Leone and early-stage uranium claims in. Despite their 70/30 joint venture, we assess Lakeland with a higher value than Declan. We interpret this valuation backwardness as a short-term phenomenon and anticipate a distinct appreciation of Lakeland relative to Declan in the foreseeable future. Declan showed high volumes in Germany during the last days and weeks; some 3 million shares were traded alone in one day in Frankfurt, which reflects the high volume on the TSX market today. Trading volumes of Lakeland in Germany are somewhat smaller but more stable and constant, yet Lakeland has 100 million shares less in the market than Declan. This market tightness may result in a price escalation. Lakeland (LK; 33 million shares out):