Grandich's Blog

Back in 2005, just about any stock that had the least bit of exposure to uranium saw its share price rise sharply. Gains of 500%, 1,000% or more were not uncommon. Then in the summer of 2007, most crashed and burned. Even the “Original Uranium Bug” was squashed (but has since been “Born Again” as a rare earth bug now). Most of those former fliers will never see the light of day again. Only a handful will earn their wings. Strathmore Minerals Corp. (STM-TSX-V $.67) appears to be one of them.

I could write a long summary of why I believe STM is set to separate itself from the “also-rans” but I’ll let you review this presentation for all the nitty-gritty details. I’m going to cut to the chase because I think time is very short before STM gets it diploma.

The proposed Pine Tree-Reno Creek sale to Bayswater Uranium Corporation is in my biased but honest opinion, the liftoff for STM with significant producer as its destination. Such a sale is worth about $.40 a share. This sale would provide a wealth of current working capital as the company moves closer to becoming a real producer on its Roca Honda project.

Roca Honda is a company maker. It has an excellent cockpit crew. CEO David Miller is a renowned mining expert that has delivered with AREVA. John DeJoia and Juan Velasquez are perhaps among the top permitting experts in the USA. The permitting application for Roca Honda is expected to be submitted shortly. If successful, Roca Honda would be one of the largest new uranium mines in the USA in nearly 30 years. The fact that STM has been under budget and on track in now year 3 of a 6 year permitting process is a sign of the crew handling operations.

There are several other assets and reasons to want to board this flight including the belief the company can continue to monetize other non-core assets and as a Canadian listed company operating in the USA, a lower U.S. dollar has positive cash flow possibilities in the future.

I’ve been extremely selective in my process of getting back into uranium plays. As noted earlier, many of them IMHO have been grounded for life. I believe STM is on the verge of lift off that can put many miles between it and the also-rans.