e-mail: david.pescod@canaccord.com May 20, 2011
HATHOR EXPLORATION (T-HAT) $2.75 +0.28
It was a couple of weeks ago that technical analyst Bill
Carrigan...a guy whose work we really admire, suggested
the uranium sector was starting to bottom and would be
his favorite sector in the resource sector. He suggested at
the same time that it would take a couple of more weeks of
bottoming for the other sectors in the resource area and
boy, has he been right about that! Remember his call of
selling the resource sector back in early March? Bang-on
Bill!
His idea on uranium and his pick was Uranium Participation
(U) and it has definitely had a bottoming process,
although it has not started to go up yet. On the other hand,
there is Hathor Exploration that in the last couple of days
has started flying.
President Mike Gunning has been doing presentations
around Bay Street and he was featured on BNN (once
again, you absolutely must-see this presentation: Click
here:
http://watch.bnn.ca/#clip468404
and it looks like there is going to be some further analyst
coverage. The surprising news on the resource number
was the size. When you are getting up to 58 or 60 million
pounds, that is significant and add in the Far East and you
are flirting with 70 million pounds. This is some of the
higher grade uranium on the planet in the perfect jurisdiction
(Saskatchewan) close by potential buyers such as
AREVA, Cameco (and hopefully not Denison) and Hathor is
now finally leading the uranium sector.
If you want to do some dreaming, consider this: Uranium
One (UUU) at the end of March closed their purchase
of Mantra, the Australian firm in a billion dollar plus deal
for their assets in the middle of a national park in Tanzania,
Africa and had a very, very low grade. It was sold at the
equivalent of $10.00 a pound. Now work out what Hathor
might be worth ..