Wow, look what i found in stockhouse today on jnn
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IM----------------------------Hello LeRoy,
You may recall last fall, many forum members had taken positions in Strathmore Resources, a unranium play, which quadrupled by January. Now here is another one to read up on, JNR Resources. The fundamentals for unranium still look very bullish which should bode well for junior players who are acquiring properties and plan to drill. I hope you enjoy my review.
Best regards,
Bill Ridley
P.S. I bought 3,000 shares@ 78 cents.
JNR Resources (JNN,V)
Shares issued 15 million, float 8 million
Cash $2 million
52 week Hi/Low $0.92/0.25
Call Chris Westwick for information and your investor package
604-684-5118 or 1-800-661-4050
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JNR Resources is the second junior uranium company which I have featured in this forum since last fall. Many investors who investigated Strathmore Resources (SMR,V) early on last September did extremely well as that stock increased 400% in just five months!
Many well known investment guru's such as Doug Casey LOVE uranium plays. The fundamental market picture looks very positive and has been reflected with solid share appreciation of publicly traded companies over the last two years. Now with JNR, we have another investment vehicle which may offer us significant potential as they acquire more properties and proceed with exploration. Let's first consider the uranium market:
URANIUM: A Classic Supply/Demand Commodity Squeeze
The supply/demand picture has change dramatically over time:
Year Western production Western Consumption W.W. Inventory
1979 99.6 million pounds 48.2 million pounds 280.1 million
1995 est 66.0 million pds 133.3 million pounds 54.3 million
Over the next few years the number of nuclear power plants is expected to increase by about 20%. The demand for uranium over the past few years has been increasing at about 2% per annum. The shortfall from lower production and increased consumption has been met by using up the remaining inventory thus creating the "squeeze" as supplies are depleted.
The Uranium Institute forecasts that even allowing for all possible mining projects and maximum levels of imports and reprocessing, the market will remain in deficit through the year 2015.
THE PROPERTIES
The Athabasca Basin
Canada produces about 30% of the world's uranium of which Saskatchewan supplies 90%, the vast majority of which comes from the Athabasca region. Two excellent deposits in this region are the Cigar Lake and the McArthur River deposits. Cigar Lake has 385 million pounds of U308 at a grade of 7.8% and the McArthur River contains 416 million pounds of U3O8 at 15%. The grading at McArthur River is equivalent to to a gold grade of 12 ounces per ton!!
JNR Resources has seven blocks of ground which were picked up based on proximity to known deposits and major structures, and having positive basement lithology and other geological indicators.
-The Key Lake Area has six contiguous claims covering about 50,000 acres five miles from Key Lake Mine (75,000 tons of U at 2.45%).
-The West Bear Area has two claims representing about 21,000 acres adjoining the West Bear Deposit (450 tons of U at .37%).
-The Cigar Lake North Area claims total about 57,000 acres are north of aforementioned Cigar Lake.
-Midwest Lake Area claims are on line of strike between the Cigar Lake deposit and the Midwest Lake deposit (14,000 tons of U at 3.8%).
-Black Lake Area claims cover about 152,000 acres. Future exploration will search for alteration haloes and drill test E-M anomalies.
-Nisto Channel Area has three claims covering 43,000 acres. Systematic exploration of a 22 mile strike will be a high priority for the company.
-Popular Point Area has three claims over 44,000 acres just 15 miles west of the Fond du Lac deposit (400 tons at .2%).
The Hornby Basin
Located in the Northwest Territories, JNR Resources has a 50% interest with 28 claims in the Dismal Lakes area which has been partitioned into two separate blocks:
-The Pec Uranium Deposit (PEC Block) is about 340 metres wide by 1.1 Km long and contains an estimated 3,150 tons of U3O8. uranium grades of .1% to .3% over a thickness of 1-2 metres are typical but in places range up to 1.23% U over 1.9 metres.
-Dismal Lakes (Boulder Train Block) has more than 400 uraniferous and/or radioactive boulders discovered in a boulder train that reaches 2 km wide by 5.5 km long with grades up to %3 U3O8. JNR would like to find the source.
Conclusion
If you like the fundamentals of uranium, and are looking for a vehicle which has prospective land holdings, a management which is aggressively pursuing more acquisitions and joint venture opportunities, then you should quickly do your due diligence with (JNN,V) or have your broker review it for you while it is still relatively unknown.
Bill Ridley
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