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CANADIAN STOCK EXCHANGES – DECEMBER – 2008 E. A. SCHILLER
CANADA HAS THE SAME LEADER WITH THE SAME MINORITY GOVERNMENT AND THE UNITED STATES HAS A NEW LEADER WITH A NEW MAJORITY PARTY. WILL THEY SOLVE OUR FINANCIAL PROBLEMS?
The market has taken no prisoners and literally put everybody in front of the firing squads. Those who avoided execution are hiding in the hills awaiting climate change or other forms of extraterrestrial communications or for those living in the US the coming of Obama to provide a solution to their problems . In Canada with the same leader and a minority government no short term solutions are expected. Like all of you I have suffered extreme pain and the financial wounds are healing very slowly. My only words of wisdom with this epistle deal with uranium and I have two suggestions for those who are brave and, of course greedy and have a gambling spirit. My first suggestion is Hathor Resources exploring in
 Saskatchewan and secondly Strateco Resources Inc in Quebec
Hathor Exploration Limited (HAT-VSE-V) is aggressively assessing the Roughrider Zone in their Midwest Northeast Project four kms northeast of the Midwest uranium ore body of AREVA, Denison Mines and OURD Canada that grades 5.47% U3O8, 4.37% nickel and 0.33% cobalt in northeastern Saskatchewan. This is smack in the center of where most of the uranium is produced in Saskatchewan with their world class deposits. Some very impressive drill hole intersections have been made ranging from 23 m grading 11.0% U308 to 69 meters grading 2.33% U3O8. Terra Ventures Inc (TAS-VSE-V) hold a 10% carried interest in the project to production. Other Hathor projects are at 1) Russell South and Russell Lake, 2) Hatchet Lake and North Hatchet, 3) Vedette Lake, 4 ) Milliken Creek, 5) Old Fort Bay and 6) Carswell with partner ESO Uranium Corp (ESO-VSX-V), 7) Wollaston Northeast with partner Tirex Minerals Corporation (TSS-VSE-V), and 8) Haultain River with partner Forum Uranium Corp (FDC-TSX-V). Elsewhere the company has a uranium project in the Hornby Bay Basin, Northwest Territories and a gold silver project at Eskay Creek, British Columbia. Even with these impressive uranium intersections Hathor stock has taken an unjustified hit and lingers in the $1.80 range and struggling to return to its earlier highs of 4 dollars plus just three months ago. Terra Ventures with a carried 10% to production is an inexpensive way to play this game because eventually Hathor and Terra will probably be bought out by somebody like Cameco who have operating mines and mills nearby. In addition, Terra has a 100% interest in Lac Kachiwiss property, Quebec with 5,670,000 pounds of calculated uranium resources; a 10% interest in seven properties totaling 310,158 acres with Titan Uranium; and an option to acquire a 100% interest in the 4,720 acre North Yellow Cat property, Utah with resources totaling 5,785,333 pounds U3O8 and 34,712,000 pounds of vanadium.
Strateco Resources ( RSC-TSX-V) has a 100% interest in four uranium exploration properties and has interests in or options on three additional uranium properties and one Cu,Pb,Zn property all in Quebec. These are Matoush, Matoush Extension, Apple and Mont-Laurier, and Eclat (100% option) Pacific Bay Matoush (60% option) and Mistassini (60% option) and Quenonisa (50% interest- Cu,Pb,Zn). The company’s flagship property is Matoush where a scoping study was recently completed based on a 43-101 compliant report gave the following uranium resource estimates – total indicated of 3,730,000 pounds U308 derived from 250,000 tonnes grading 0.68% U308, and total inferred of 13,070,000 pounds U308 derived from 1,344,000 tonnes grading 0.44% U308. Additional drilling totaling 17,217 meters has been completed and not reported in the 43-101 report that will add increased indicated and inferred U3O8 resources. The Matoush property is located in the Otish Mountain region 700 kms north of Quebec City and has been well known for its uranium potential as a result of exploration by Uranerz Mining and Cogema in the late 1970’s and early 1980’s. Due to depressed prices uranium exploration ceased until 2006 when Strateco renewed exploration by way airborne geophysical surveys followed by drilling to establish the above compliant uranium resources.
Figure Shows the Matoush Project camp in the Otish Mountain region, 700 kms north of Quebec City. The camp is equipped for year round utilization using both float and ski equipped aircraft from southerly supply centers.
The Quebec Apple Property has an indicated resource of more than 10 million pounds of U3O8 contained within a pyritic quartz pebble conglomerate similar to the former producing uranium deposits at Blind River, Ontario. Strateco’s stock has come off like everybody else’s and in late November was trading in 50 cent range. |
