Fission Uranium Corp. (FCU.TO)

Chart shows this consolidated at around $1.10 this spring. Support was broken in early June and it dropped down to below $1. Then it rose again to the support level at around $1.10. The story doesn’t look so great. He wouldn’t want to be in the stock.

Uranium is a dog at this time. This is a reason why there is no glamour attached to these stocks.

(Doesn’t follow this closely.) Have come out with extremely good drilling results over the last 1.5 years or so. The uranium space hasn’t really come back. If you are looking out for the next few years, and the uranium prices come back, he thinks this will be one of the “go to” names.

One of the better Junior exploratory companies in the uranium space. Good management team and good prospects. Highly speculative, but probably a little more interesting than your average junior miner.

Drilled up a fairly large uranium deposit in Saskatchewan that is adjacent to the bigger guys, so would be an obvious takeover target. Seasonally it has just now come to the end of the drilling program, and now gets quiet until the fall. You have to look for higher prices, but it takes a while. This is worth twice what it is trading at, but you need some kind of catalyst to make it go there. Probably dead money until Labour Day.

Have had big discoveries and able to grow their resources to well over 100 million pounds in the ground, and continue to find more discoveries. Eventually this will be a takeover target for one of the big guys. The only thing working against them is the uranium cycle. He firmly believes the price of uranium will come back.

They continue to drill, find and enlarge a fairly large uranium deposit in Western Canada. This is one of those things where you usually need a senior to come along and buy you in order to spend all the capital required to bring it to production. Cheap at $1.16 and probably should be trading over $2. Thinks uranium will be in a better environment. You may have to be a little patient, but at some point you will be rewarded.

A year ago, this was too far out of where all the infrastructure was. Any time you bring on a new project you really have to develop the thing. Now that it shows it is expanding, it might be able to live on its own, so that another big uranium player could come in and buy it. It is likely a decision will have to be made by a real producer in the next 12 months.

They have the best new Uranium discovery anywhere in the world. They just did a hole on land. If they can build out a resource on land it will be much more attractive. Current holes under a lake.

The drill holes that were released yesterday and today were very nice holes. The exploration that is going on is reaching a fulcrum where they know the ore body well enough that exploration is starting to become predictive.

In a market that is in a sort of topping process, you want to move to spaces that are safe, countercyclical or under owned. Uranium is a space that he feels is under owned. Doesn’t think there is any downside, but also doesn’t think there is any upside. It’s a place to park money and maybe it will go up. This is a long term play. Doesn’t see any harm, but doesn’t see any gains either. Doesn’t think anything is going to happen for a few years in this space.

Waiting for the 1st maiden resource. The expectation is that it would be disappointing on their part if it wasn't at least 60 million pounds. This is a higher grade resource in Patterson Lake and close to the surface. However, infrastructure lacks a little more there. Feels the market would really react well if they could get closer to 80 million. The true goal is to see consolidation in that area. There are a couple of other players in the Patterson Lake space.

He has been buying more based on exploration news that he has seen recently. News on this one just seems to get better and better and better. Any upside in the uranium price would be icing on the cake.

Uranium. Their initial resource in the Pattison Lake South project is supposed to come out late this year. Market is looking for at least 50 million pounds, and the company would like to see closer to 70 as an initial resource. Looking out a year forward, you would like to see between 80 and 100 million pounds. This would justify building a mill and building the project. There is no reason to suggest it couldn’t get to 100 million. A good way to find the next probable project within the next 5-10 years in uranium.

A group he has owned for a number of years. It has done very well for him. They have a partner. They are in an early stage of exploration. It will be a couple of years before you have anything. You have to appreciate the risk profile before you go in.