UC Resources (UC.V, UCRLF):
Has anyone here done any work on UC Resources? It was in the Toby newsletter today. I will do some reading after work and see what they have.
Here is the mention from the newsletter:
UC Resources is a micro-cap silver and gold producer with a market capitalization under $60 million. I calculated at full production they will produce 1.3 million ounces Silver and 14,000 ounces Gold. Silver producers of 1 million ounces typically fetch a market cap of $80 – $100 million. The CEO, who has now resigned, has been promising full production capability by the end of the year, which is not going to happen. They should be able to move into production in 2008.
An opportunity has fallen into UC’s lap. They signed an earn in agreement with two very small companies. These two companies have properties at McFauld’s Lake in Canada. UC can acquire 55% interest by actively exploring their properties, meeting predetermined progress milestones. Normally, I would not assign any value for unknown exploration potential, but this is a different case. One of UC’s neighbors at McFauld’s, Noront (NOT.V), hit what appears to be a
mother lode. They have found high grade Nickel, Palladium, Platinum and Zinc ore. Noront’s share price was C$0.35 before the discovery was announced and has hit a high this past week of C$7.00. UC has an inherent value of C$1.00 based upon their Mexican property. McFauld’s Lake exploration potential is the whip cream and cherry on top. UC has discovered high grade copper and zinc in several drill holes. Their VP of exploration also sits on Noront’s board. UC recently raised capital with the intent of intensive exploration on their McFauld’s properties. They have said recently they are soon going to drill “Noront like signatures”. Considering the VP is on Noront’s board, he will know exactly what to look for in placing their drill rigs. Should UC over the next year identify ores similar to Noront’s, the stock could easily rally 5 to 10 times its present value. Company Website: www.ucresources.net
