Dear Readers,
You need to consider this deal as a potential addition in your portfolio.Noka Resources (TSXV:NX | NOKAF:US) is just getting started and I wanted to make sure you got it on your radar screen right now. NX.V is one of the best structured vehicles to play the uranium market on the TSX Venture today. As many investors realize, when it comes to investing in juniors, structure is everything and this one has it right. The company completed a 10 for 1 roll back at the end of 2014 putting everyone’s cost basis in the mid $0.30s if they’re lucky…
The stock traded quite heavily around the $0.20 range before the roll back so for those investors to get even on their position, the stock would have to trade above $2/share…Noka is currently trading around $0.20. After the consolidation, Noka only has a total of 15 million shares outstanding of which only 4.8 million are free trading at the moment. When I said this is one of the tightest structured company’s on the venture, I wasn’t kidding. The stock is just starting to gain momentum. You could see some investors last week starting to accumulate a position between $0.12-$0.20. This is a signal for us all that the stock should hopefully start to move here shortly. Noka’s team is very well versed in the junior capital markets world and there is no doubt in my mind they should be able to drive some excitement around this name.At $0.20/share and a great structure, the team is just getting started…
It isn’t hard to notice that the uranium sector has made investors a tremendously amount of money over the last few years. With early investors cashing in on over 50X times their money with Alpha Minerals (AMW) in 2013, and similar returns with Hathor Exploration before that, there is no doubt that everyone is doing everything they can to find the next one. With all the success and hype Alpha Minerals has received, they weren’t the only ones reaping the rewards of a hot uranium market. More recently, investors in Fission Uranium (FCU) saw their initial investment skyrocket from pennies to dollars around the PLS discovery in the Athabasca Basin. The basin is becoming THE place to find uranium and the best part is, uranium is probably the only commodity right now where the market will heavily reward you for finding. With that being said, Noka Resources (TSX.V:NX) is looking to follow in the footsteps of its predecessors. Over the next several months, Noka will be drilling two different properties, both with tremendous upside potential. If successful, Noka could quickly become the darling child of the TSXV and the next big win for investors…
Located in northern Saskatchewan, the Athabasca Basin has the highest uranium ore grades in the world. In the Patterson Lake area (PLS), Alpha Minerals and Fission Uranium made a significant, near surface uranium discovery with a reported drill interval of 9.08% U3O8. Others like NexGen Energy (NXE) have gone on to drill great holes and have been rewarded accordingly. Fission has continued their success releasing several high grade intervals over and above their initial discovery. The consistent high-grade results in the area surely demonstrate the potential for mineralization on the underexplored South West side of the Basin where Noka and its partners are focusing their drill program at their Preston Lake property. This is a prime target area for Noka and its partners like Skyharbour Resources (TSXV:SYH) who have one of the largest geologically prospective land packages in the region with a total of 493,236 hectares. The property boasts a favourable geological structure with unconformity-sandstone and basement-hosted style uranium mineralization making it a prime target area for another discovery.
Noka (NX.V) has two flagship properties worth noting; Carpenter Lake and Preston Lakeand most importantly, a successful uranium expert leading the charge. Rick Kusmirski was the VP Exploration of JNR Resources which started off as a little uranium explorer sitting at $0.05. In 2013, the company got bought out by Denison Mines (TSX:DML) for $10 million. Kusmirski is looked at as leader in his field and feels very strongly about the potential of Noka’s projects. Here is a brief summary of both:
Carpenter Lake
Totaling more than 20,000 ha, the property includes an option agreement with Alpha Exploration with the potential for Alpha to acquire 60% interest. In case you guys were living under a rock in 2013, as I mentioned before, Alpha was the hottest play on the market going from a low of $0.20 to over $7/share in just under a year. After they got bought out by Fission Uranium, Alpha spun-out their other assets into a new-co called Alpha Exploration (AEX.V) and looked to repeat their success. The geological details include strong radiometrics, lake sediment anomalies, and conductors. Recently Noka has completed an airborne VTEM and magnetic survey and will look to drill this property shortly.
Preston Lake Property
In the Patterson Lake South area (PLS), Preston is the largest prospective land position with a basement-hosted model. It is part of the historically underexplored path of the south Basin, with numerous high potential exploration corridors. In 2013, the company executed extensive exploration locating key target areas:
- Arrow Prospect: Radon survey and Ground EM have been completed at locations for final drill targeting.
- Swoosh Area: Is the highest priority target area with seven distinct gravity lows that were identified in the latest ground survey.
- Fin Area: low lying main target that is prime for follow up ground EM and Radon survey.
- Clearwater North Area: Two distinct targets identified (CHA and CHB)
- Several Central Property targets have been identified including Clearwater Limb Target (drill ready for Q1 2015), Clearwater South Target (drill ready for Q1 2015), Betty-Lou Target
There has already been significant work done on this project so it should be very exciting to see what kind of results they come up with!
Other areas that are within Noka’s interest are 100% owned Craig Lake (south basin) and the 100% owned Partridge, Jean, and Strike Lakes. Both areas are basement-hosted models with the potential for more exploration. Look for Noka’s share price to start appreciating once Fission and NexGen start to release more results to the market. With such a major land package near both those plays, there’s no doubt in my mind Noka’s stock should move on the back of those results.
Like I mentioned before, this is the time to keep Noka Resources (TSXV:NX) on your radar screens. Even though we all know the resource market in general isn’t that hot right now, a true uranium discovery will surely get the market excited and Noka has two chances to make it happen! The team is just starting to market their story to investors all over the world so I wouldn’t be surprised to see the stock start moving in the next short while just based on their marketing efforts. We all invest in juniors to hopefully make a massive return on our investment and I think Noka is a prime candidate for that. If they’re able to hit on just one of two of their projects, NX.V could be a real winner. At $0.22/share, it’s definitely worth a second look. click here to visit their website: www.nokaresources.com
