Winston's Growth Stock Report
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Issue 12 Vol.15 April 3, 2008
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Hathor Resources (HAT, TSXV) 6 More Mineralized Holes
Hathor was one of the top volume leaders last week as they announced that 6
more holes have shown positive gamma ray scintillometer readings. Not to be
confused with actual lab results, the scintillometer does seem to have some
correlation to what we might expect from the lab.
From the newly named Roughrider Zone, drill holes 16 through 21 all showed
natural gamma radiation emissions. The holes were drilled within about 30
meters of the discovery hole, taking different angles on the target. Interestingly,
the geological structure called the unconformity hasn�t been found yet. The
unconformity is where miners normally find the highest grade uranium.
Two drills have been
operating on the Roughrider Zone since the discovery however operations may
close down shortly as warmer weather will deteriorate the access road and melt
the ice on the lake where they are now drilling. They are now drilling holes 28
and 29.
It is also interesting to note that at the Mae Zone to the south, Denison, OURD
and AREVA have been drilling all winter as well. They already have a drill
proven discovery but it will be interesting what additional information they
come out with later this year.
The aforementioned companies would be the most likely candidates to buy out the
Roughrider project should it prove up to be an economic deposit.
As an added bonus, the Roughrider Zone is just 10 kilometers from one of the
world�s top processing mills, the McClean Lake facility.
Keep holding or take a position.
Uracan Resources (URC, TSX)
Though Hathor is taking the limelight in the junior uranium exploration market,
Uracan Resources has been quietly making great strides in expanding their near
surface, economic grade, large tonnage uranium discovery at their 100% owned
Double S Anomaly in Quebec.
The results so far this year are showing continued mineralization in multiple
stacked zones with widths as thick as 156 meters grading from 0.010% to 0.049%
U3O8.
The latest results are compounding the results of 2007 where new zones were
being confirmed along the 1500 meter strike length. Uracan is building a
potentially massive tonnage resource which is open at both ends of the strike
and down dip. Management is now confident enough to begin preparing an initial
resource estimate for the property. That�s an important milestone for the
company, as research analysts need that to begin coverage. I expect that upon
that news, due in mid-June, the investor audience for the company will broaden
widely � and hopefully will mean an increase in share price.
The company has three drills turning right now � two in Quebec and one on its
100% owned Pipewrench Lake Property in Saskatchewan � another bulk tonnage near
surface target. The next round of Double S results should be out soon. We don�t
expect any results from Saskatchewan until late May. In Quebec, one drill rig
is actively trying to expand the Double S zone, and another is testing other
zones on the property � the WeeGee and the Johan Beetz targets. We don�t expect
results from these new zones until May either.
Logistics are great at this property - Uracan can drill its North Shore
Property year round, giving investors steady news flow. Uracan�s Johan Beetz
target, for example, is right along a major provincial highway.
Uracan is good complimentary stock to Hathor. Uracan has the potential for
lower grade massive tonnage whereas Hathor is likely zeroing in on a smaller
but higher grade uranium deposit.
Uracan remains a buy for growth.
Denison Mines (DML, TSX; DNN, AMEX) Q4 Results
Our top blue chip uranium pick, Denison Mines has reported Q4 profits of US
$24.5 million. Production forecasts have been downgraded this year to 1.4
million to 1.7 million pounds of uranium from 1.7 to 2.1 million. This decrease
was a result of a slower start of their White Mesa Mill in Utah.
Output of vanadium-pentoxide, a substance used to harden steel, will be 3
million to 4 million pounds this year, down from an earlier forecast of 4
million to 6 million pounds.
Despite lower than expected revenues this year, CEO Peter Farmer is optimistic
that uranium supplies are still tight and the outlook is for higher prices.
Farmer suggested that later this year the price could climb back up to $95. So
even though Denisons� revenues are off, higher uranium prices could improve
their bottom line later in the year.
�We expect the spot price to recover and see (uranium) trading much closer, or
even above, the long-term price (of $95) later this year, and believe the
long-term price may increase also,� stated Farmer.
Denison, which reports in U.S. dollars, reported earnings of 12 cents per share
for the fourth quarter, improving on a loss of $2.4 million or two cents per
share for the same period in 2006. Revenue more than quadrupled to $36.8
million from $8.3 million.
In 2007 Denison's overall profit was $47.2 million or 25 cents per share. This
is an improvement over a fifteen month period ending December 31, 2006 that saw
them with a loss of $16.9 million or 18 cents per share.
Denison is a buy for growth.
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