"UCORE: A HREE Dark Horse with a Secret Weapon" : Sunday, August 15, 2010
I flew to Ketchikan, Alaska on Thursday to see Ucore Rare Metals (UCORE) Bokan Mountain property as an Editor of RareMetalBlog. A PPT presented confidently by Nick Vermeulen, MSc Geol., MBA, VP of Corporate Development for UCORE Rare Metals (OTC: UURAF | TSX.V: UCU) kicked off the tour. UCORE has a market cap of approximately $42M, 105M issued and outstanding shares, $4.2M cash and 100% control of the Alaskan Bokan Mountain property.
The tour included rare metal expert and well-known UCORE Advisory Board Members Jack Lifton and Tony Mariano, PhD (Molycorp, NeoMaterials). Nick explained that UCORE’s Bokan Mountain is Alaska’s only prior producing uranium mine and produced 1.3M lbs U3O8 at 76% from1958-71. The historic estimate for Uranium (U3O8) on this property is11.7M lbs and the Rare Earths is 374M lbs (*source USGS 89; Barker & Warner; Non 43-101 Compliant); making UCORE potentially the largest US based HREE deposit and one of four near term junior production deposits in North America (see attached PPT).
Now, it is with great caution that I proceed to communicate my perception of UCORE’s Bokan Mountain property. I am a Managing Partner for Weslosky & Cowans Ltd., a licensed Exempt Market Dealer since 2005; and am not qualified to give investment advice, so this is my effort to provide an account of my experience with UCORE’s management in viewing their property as a member of the tour and again, I am not a professional investment advisor. When I agree to see a property, sometimes I buy stock; in this case, I bought shares of UCORE Rare Metals (OTC: UCURF | TSX.V: UCU) on Monday, August 9th after confirming that I would attend.
UCORE: A Dark Horse in the HREE sector?
Like many others, I do believe that when you are in the right place at the right time you make money. UCORE is in the right place based on my theory that the US retail green energy and clean technology investment audience is expanding their interest into rare metals. So on top of the natural resource investment fervor usually focused on the Canadian exchanges, we have a resource with cross over appeal that California baby boomers (for instance) with increasing interest in managing their portfolios are discovering.
US media reflects an unhappy American consumer discovering their green energy advancements reorienting their dependence from the Middle Eastern oil to 100% dependence on the Chinese for their rare metals. Let’s be frank, there is a lot to be said for the branding power of “Made in the USA” that appeals to the American investment audience.
So while I was aware of this perceived advantage, I discovered an additional one beyond ease of proximity to the resource this weekend (30 minutes in a twin otter plane from Ketchikan to the property); which in my mind gives UCORE an intriguing advantage – a powerful woman.
In eastern Tennessee I grew up hearing that behind every great man is a great woman. With this said, there is only 1 women in the rare metal industry in the front lines (C-level of BOD) that we could find -- the CFO of Stans Energy, Elena Masters.
Intriguingly Lisa Ann Murkowski a senior US Senator from the State of Alaska – the one with no debt, not only knows what a rare metal is, she is second in command on the Committee on Energy and Natural Resources making her someone to watch rise in this sector. She wrote: “Further resolved that the House of continued exploration of rare earth deposits in Alaska, the issuance of permits, as promptly as allowed by law, for extraction, processing, and production of rare earth materials on the Bokan Mountain properties, and commencement of planning for extraction, processing, and production of rare earth materials by industry.” -- Bill 4866 (April 2010).
So with UCORE possessing HREE’s, being located in a mining friendly state and close proximity lead by CEO James McKenzie and backed by a heralded industry team that included company participants on this tour: Director -- Jaroslav Dostal, Ph.D., P.Geo; Vice President Project Development -- Harmen J. Keyser, P.Geol; VP of Corporate Development -- Nick Vermeulen, MSc Geol., MBA; and CFO & Corporate Secretary -- Peter Manuel, Vice President; it certainly bodes well for the benefits of talented collaborative integration and offers numerous significant variables required to provide an exciting company to watch in this competitive space.
