Tuesday, October 03, 2006

Uranium juniors...

I've been spending time over the last week looking at uranium juniors. Yesterday I added to my position in Forum Uranium. I am typically not too keen on averaging down, but I believe it is the right thing to do in this case. Forum is a well-run company that has some highly-prospective properties (don't they all?) in the Athabasca Basin and the Thelon Basin. They are just starting a drill program on their Key Lake Road project in the Athabasca and I have heard that they like what they see. Unlike PM's uranium explorers are able to run a scintillometer over the core as soon as it comes out of the ground. This is no substitute for an assay, but if there is significant radiation, it will show up on the meter.

Last week I attended the Toronto Resource Investors Conference. One of the companies that I thought was worth a closer look is Universal Uranium. Like Forum, Universal has a solid team in place. They have a fair amount of cash and properties in Utah, Labrador, Arizona and Colorado. They are about to kick off an 18-hole drill program on their property in Lisbon Valley, Utah. This area is host to a number of historical uranium mines. One of the more well-known mines is Mi Vida, discovered by Charlie Steen. Mark Steen, Charlie's son, works with Universal and got them involved in the Utah properties. They have a crew up in Labrador as well that is turning up some good initial results with their field work. If they can get the property adequately prepped before winter, they will be able to drill it. Otherwise, it will have to wait until spring. Utah and Arizona can be worked year-round. The stock has been steamrolled over the past several months and despite the fact that the downtrend has not yet been broken, I started a position thinking that the worst is probably over.

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