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« Gold, Uranium and Industrials: Sell in May and Go Away? | Main | Uranium Participation Corp: Up 23.4% in 3 months »
Saturday
Mar242007

Uranium Star Corporation: Worth a gamble?


Uranium Star logo




This is a small uranium exploration company who’s Market Capitalisation is $39 million with 29 million shares outstanding and currently trading at $1.29.

They have just three properties as listed below:

The jewel in the crown is the SAGAR uranium/gold property in Quebec, Canada, which covers an area of approximately 50 square kilometers. The work will be undertaken together with Virginia Mines who bring to the party both knowledge of the region and exploration expertise. This area is of interest as it encompasses the Mistamisk Boulder Field where Virginia Mines have reported that 70 boulders assayed an average of 64.9g/t Au and 1.3% U (with values up to 640 g/t Au and 4.11% U). (There are also interesting possibilities for gold.) The question that remains is can they find and successfully mine the ‘source’ of theses radioactive boulders. Well they believe that they have identified this source so they must now produce the drill results to prove it. On the 5th March 2007 the company announced that they had two reverse circulation drills in place that would be operational within a week.

So we have to decide to take a gamble on a reasonable discovery being found and go in now at the current price or wait until the news, hopefully good, is reported and buy with a little more certainty at a higher price.


Sagar map




There second project that is of interest is the Arizona uranium project which is predicated on data dating back to the 1970s plus Rodinia's success in the same area which denotes an inferred resource estimate containing 3.22 million tons at an average grade of 0.086% U3O8, or approximately 5.5 million pounds of U3O8.

The third property is in Finland, which involves around twenty claims within the Paleo-Proterozoic Kuusamo Schist Belt of northeastern Finland, so watch this space.

It is interesting to note that Sprott Asset Management own approximately 22% of the outstanding shares, which adds to our comfort level in investment terms.

The chart shows considerable volatility, which is to be expected in an early stage play as rumour, and news cause incredible price swings. There is not a great deal of financial data to analyse in detail so to invest now is a straight forward ‘bet’ on the management and the locations. We think that it is worth a small amount of our investment funds so the question now is when? Well the stock price appears to be trending down however at this stage the chart analysis is not all that reliable. If it came back to the $1.00 level then we would be buyers but as usual it will probably tease us for a while by going side ways. We will dig a little more next week and if we decide to take this gamble we will post accordingly.


uranium star chart 23mar 07


If you are a hyper-active investor who just cant wait then feel free to make a purchase but don’t go mad on it, go in slowly and get familiar with what is it that you are investing in.

Have a great week.


Uranium Star Corporation Trades as URST:OTC: BB and on Frankfurt as YE5.


24 March 2007

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