The question now is: Khan you afford not to own this uranium stock?

As you know we made an investment in Khan Resources on the 5th March when we were able to purchase this stock at $3.63, it now stands at $5.20 giving us a paper profit of 44% in just 6 weeks.

The chart above shows what tremendous progress Khan has made and as each day goes by this stock generates more and more interest as evidenced by the increasing trading volume.

This asset is located in Mongolia, which is just north of China. China will no doubt become a customer of the future for Khan due to its proximity. Does this asset run the risk of being nationalised? Well the Mongolian government do own 22% of the project and the Russians own 20% so they already have a healthy slice of the action. We see it as a win-win situation for each party.

The Khan story is no longer an undiscovered secret, its story is out of the bag but it is a very good story and in our opinion has a long way to run. Even from these levels we still expect Khan to more than double within the next twelve months. As of 5th April the Dornod Uranium Project in Mongolia has an indicated resource of 55 million pounds with a re-estimation now being implemented along with the pre-feasibility study due for completion in the next few months. If we use the current indicated resource of 55 million pounds and the market capitalisation of $C265 million then we have uranium at $C5/lb in the ground. A steal!

Not only is it a good investment but it is also attracting a fair amount of air play as mentioned on ROBTV and it is also popular with the Leeward Hedge Fund, Sprott Asset Management and The Gold Newsletter to mention a few.

In conclusion we have a quality uranium stock, getting good coverage, set in the context of a rocketing uranium price, what more could you ask for? We will continue to accumulate as and when our cash position allows.