Radar Screen Pick – Uravan Minerals looking for uranium discoveries in a new way
The best place in the world to look for high-grade uranium is in the Athabasca basin of Saskatchewan. It is well-known for extreme high-grade uranium mines. But these mines are deep, which makes them challenging to find, and not cheap to make a discovery.
Uravan Minerals (UVN.V) has a unique method of exploration that could not only unlock discoveries on their ground. It has the potential to be used in other parts of the Athabasca basin to unlock more discoveries. They have a potential game changer exploration method, and I’m pleased to add them to my Radar Screen Picks list.
Radar Screen Picks are purely for investors looking for cheap stocks they can get in on the ground floor, well before the elevator starts to move. These are dirt cheap picks that are unloved, or for sure under loved and ready for a change. They just need someone like me to come along and help them find a new audience of investors.
A potential exploration game changer in uranium
Uravan Minerals (UVN.V)
Uravan has an interesting exploration method for uranium, basically, uranium deposits emit certain chemicals that over time make their way to the surface where traces can be picked up in the soil and tree bark at the surface.
They have a more detailed explanation of their exploration model in their corporate presentation, visit here to learn more about the method. Keep going through their corporate presentation as it gives you a better handle on their entire story.
When you do, they have a slide early in the presentation that shows the entire Athabasca Basin, and you will see this is a large area. If you look at the various mines, they are mostly confined to the east side of the basin.
It is important to note a couple things; one is that the rest of the basin has just as much potential as where the big mines are located. Another important thing to point out is these extremely high-grade uranium mines, are small ore bodies compared to most mines. They are low tonnage, but very rich values per ton due to the extreme high-grade uranium.
The point is the Athabasca Basin is very big, and the mines are small, it is a literal search for a needle in a haystack. Due to the rewards being so huge in the Athabasca Basin, if a company has a cheaper method to accurately find needles in that haystack, they are off to the races.
Uravan believes they have just that kind of cheaper method to make uranium discoveries, and they have used it at their Outer Ring project. It is off the beaten path from where most exploration has been done as it is closer to the middle of the Athabasca basin.
Their method is based on a theory that was tested on known big mines in the Athabasca basin and they got the expected results. It is a long way from proving a theory based on confirmation from where a known mine is located and using it to locate a new discovery.
At their Outer Ring project, where they are focusing all of their exploration efforts in 2016, they have lined up their indicators that they look for on their radar screen. They have followed the surface sampling up with geophysics and have lit up a large target ready for drilling.
Next, they have to get the funding for drilling at the Outer Ring project. Since the beginning of the year, gold has started a new bull market. This has brought back an investor appetite for exploration, especially for big targets. High-grade uranium projects in the Athabasca projects can get big really fast.
I still have a large audience of investors following my work for junior uranium stock as I’ve picked few but found Hathor and Fission when they had valuations similar to Uravan. As more of my audience learns about this junior uranium stock, and investor appetite for exploration improves, I expect Uravan to have little issues finding funding to test their Outer Ring target.
The target is drill ready, and they can drill it as soon as this summer or early fall. I’m pumped to be able to add them to my Radar Screen Picks while they still have a tiny market value.
When they get the funding and test this target, I expect those in early will have a couple chances to sell some at higher prices and let the rest ride and give these guys the time to thoroughly test their uranium exploration method.
They don’t have a lot of stock out, and are looking for elephant type uranium targets if they get it right, this one has the potential to be revalued in multiples of their current valuation.
All the best,
Allan Barry Laboucan
P.S. my reports are for information purposes only, before making any investment decisions it is important to do your homework and speak with your financial advisers.
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