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CTS - Contact Resources

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Not realy an article, but 2 mentions on pg. 33 under the heading "Radioactive stock bets for speculators - Red Hot Tips - Warwick Grigor's Watchlist - Contact Resources - Undervalued Peru deposit".
Also in the body of the article, towards the end, "The ones he would buy are: Contact Resources, with its project in Peru."
Thaaaats all folks!!!!!!
 
When everyone's focus is no Peru, don't forget the 20% of whatever in Kyrgyzstan. (same country where MRO has the land). According to the companies website, The four projects has 1050t in C1, 12,630 in P1/C2, and 52,800t in P2.

The are Russian system. C1 is close to Inferred Resources, while C2, P1 and P2 are considered as exploration potential, could be, and might be...

Anyway, it has opened another frontier for uranium hunting. The potential is very high.
 
mmmmining said:
The are Russian system. C1 is close to Inferred Resources, while C2, P1 and P2 are considered as exploration potential, could be, and might be...
Click to expand...

My mistake.

Russian vs International reporting Code, JORC, etc
A,B: Proved Reserve / Measured Resource
C1: Proved or Probable Reserve / Indicated Resource
C2: Probable reserve / Indicated Resource / Inferred Resource
P1: Inferred Resource
P2: Reconnaissance Mineral Resource (or UNFC code 334)
P3: no equivalent

The projects in Kyrgyzstan has 13,680t uranium in P1 or better status, or In JORC's term, as inferred resources or better. If it is true, it is significant. 20% of them will be around 2700t, or about 6mlb.

Can someone think it differently? I must be wrong.
 
Great couple of days for CTS, increased volume and a rise in SP. I think the market is becoming more aware of these now. Cant believe for a $27m market cap (undiluted) its predicted to be in uranium production in 2007/8 (per their recent ann...late 07!). Excellent uranium grades and an increasing resource (read their anns), heap leach extraction is on the cards, with historical recoveries of 85%+. The ex-soviet grounds they can earn upto 90% in look VERY promising...once they sift through the historical data, they could be in for a big result.

I'm in this as of today, fingers crossed but looks good value, hasnt run hard at all, and for the data on hand, it's got a great chance of a rapid sp increase IMO. DYOR of course.
 
bigt said:
I'm in this as of today, fingers crossed but looks good value, hasnt run hard at all, and for the data on hand, it's got a great chance of a rapid sp increase IMO. DYOR of course.
Click to expand...
Let the show begins. It could beat anyone on ASX to be the next producer.
 
I used to have some doubt about the geology of the Peru Corachapi Deposit. After hearing the opinion from famous geologist Geoff Blackburn, AOM, I am convinced it is a good one.
 
Unusual trading on the options last week - very high volumes but price was still kept down - often below the share price equivalent - even now it looks like share will open 64 but sell on options at 43... for 20 cent June08 options you'd expect them to be around 50? am i missing something here?
 
Can't answer your question, but I have noticed that for the last week or so, CTS comes out like a gunshot at opening, then falls back. Buy/sell ratio still around 6:1 (or so), it just isnt keeping its gains made in the morning..it has been slowly creeping up though. IMO a drastically undervalue stock for the resource is currently has and more importantly, what it could have after further drilling (open extensions all round).

Do any more experienced traders recognise what this pattern of trading may suggest?
 
bigt said:
Can't answer your question, but I have noticed that for the last week or so, CTS comes out like a gunshot at opening, then falls back. Buy/sell ratio still around 6:1 (or so), it just isnt keeping its gains made in the morning..it has been slowly creeping up though. IMO a drastically undervalue stock for the resource is currently has and more importantly, what it could have after further drilling (open extensions all round).

Do any more experienced traders recognise what this pattern of trading may suggest?
Click to expand...

This to me suggests that there are people buying up for a potential run... I''ve noticed that all Uranium stocks before they become superstars go through phases like this... I'm going to buy up I think... good company, good prospects, good resource, good country (Peru), tiny market capital, yeah this has huge potential....
 
56gsa said:
Unusual trading on the options last week - very high volumes but price was still kept down - often below the share price equivalent - even now it looks like share will open 64 but sell on options at 43... for 20 cent June08 options you'd expect them to be around 50? am i missing something here?
Click to expand...

Market manipulation most likely
 
Some news re Solex et al whose project is close to CTS at Corachapi, in Peru.

Solex Resources Corp. Intercepts 0.089% U308 Over 10 Metres at Macusani
Tue Apr 17, 2:12 PM
Email Story IM Story Printable View
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 17, 2007) - Solex Resources Corp., (TSX VENTURE: SOX.V) ("Solex" or the "Company") and Frontier Pacific Mining Corporation (TSX VENTURE: FRP.V) ("Frontier Pacific" or the "Operator"), (collectively the "Joint Venture Participants") are pleased to report that recent assays on the remaining 7 drill holes at Calvario III have outlined further high grade Uranium mineralization on the near surface horizontal ignimbrite zone, previously described in our News Release dated April 2, 2007.

Drill hole No. 56 intercepted 0.089% U308 (1.92 lbs per ton) over 10 metres (33 feet), including 0.3% U308 (6.65 lbs per ton) over 3 metres (10 feet).

I'm looking forward to the results of CTS's drilling.
 
MJSJ said:
Some news re Solex et al whose project is close to CTS at Corachapi, in Peru.

Solex Resources Corp. Intercepts 0.089% U308 Over 10 Metres at Macusani
Tue Apr 17, 2:12 PM
Email Story IM Story Printable View
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 17, 2007) - Solex Resources Corp., (TSX VENTURE: SOX.V) ("Solex" or the "Company") and Frontier Pacific Mining Corporation (TSX VENTURE: FRP.V) ("Frontier Pacific" or the "Operator"), (collectively the "Joint Venture Participants") are pleased to report that recent assays on the remaining 7 drill holes at Calvario III have outlined further high grade Uranium mineralization on the near surface horizontal ignimbrite zone, previously described in our News Release dated April 2, 2007.

Drill hole No. 56 intercepted 0.089% U308 (1.92 lbs per ton) over 10 metres (33 feet), including 0.3% U308 (6.65 lbs per ton) over 3 metres (10 feet).

I'm looking forward to the results of CTS's drilling.
Click to expand...

When can we expect the drill results to come out as I'm still trying to get in at a lower entry
 
insider said:
When can we expect the drill results to come out as I'm still trying to get in at a lower entry
Click to expand...

My understanding is that drilling hasn't commenced yet - I would expect it to be at least 4-6weeks before we have any news - should be enough time to get set - as the sp seems to be sliding a bit at the moment - Good Luck!
 
MJSJ said:
Some press - CTS was given a wrap by the MD of Far East Capital on Inside Business - the transcript hasn't been posted yet - maybe tomorrow!
[ http://www.abc.net.au/insidebusiness/ ] - I wonder if it will have any effect on the sp?
Click to expand...

Full transcript below:

ABC Online

Inside Business - 22/04/2007: Analyst looks at uranium boom

[This is the print version of story http://www.abc.net.au/insidebusiness/content/2007/s1903602.htm]

ALAN KOHLER: In another big week in the booming uranium sector, the besieged board of Queensland explorer Summit lowered the drawbridge and recommended shareholders accept a $123 billion offer from Paladin Resources, while the new boss at one of the world's largest producers, ERA’s Chris Salisbury, warned that the whole yellowcake boom looked overcooked to him. For his take, I spoke to one of the most highly regarded analysts of the sector, Warwick Grigor of Far East Capital.
Well Warwick, perhaps you can just set the scene for us a bit, what's the uranium market been doing this year?
WARWICK GRIGOR: This year it's just been going up and up. It's part of a three, four-year bull market that we've been experiencing. Uranium has actually come from down around about $US10 a pound. A couple of months ago, it was $95 a pound and then it's suddenly jumped to $US113 a pound about a week ago.
ALAN KOHLER: And what's been driving that?
WARWICK GRIGOR: Basically, there's no uranium around. There's a major shortfall. The anticipated needs for uranium over the next five years can only be satisfied as to 60 per cent by mine production. The rest of the uranium is coming from reducing stockpiles, converting weapons-grade uranium back to power station uranium, but basically we've gone through a period of probably 20, 30 years where there's been no investment in the uranium sector. There's been no exploration. It's been a total departure from the industry and that’s left us in a critically short position today.
ALAN KOHLER: The chief executive of ERA, Chris Salisbury, says the market in uranium is looking overheated. Do you agree with that?
WARWICK GRIGOR: Well, it's certainly very strong. Whether it's overheated, there's nothing to suggest the uranium price is going to go any lower at this point in time. As far as ERA is concerned, I suppose they're not getting any benefit from these high uranium prices because they've got long-term contracts and they're getting substantially less so, as far as ERA is concerned, the way they look at it, I’m sure they'd say it would be overheated.
ALAN KOHLER: Well, how high do you think the price can go?
WARWICK GRIGOR: It could quite conceivably get to 150 a pound before the end of this year. At that level, it does start to look a bit toppy and there would be enormous profit margins to be made by producers that could come on stream, so if it peaks at 150, I would expect - what the managing director of ERA said was that in three years’ time, you would expect it to be somewhat softer than it is today and that is reasonable to expect if we do get a supplier response but there's not going to be much of a supplier response for at least two to three years and so the uranium price will stay strong for that period.
ALAN KOHLER: With the uranium price where it is now and what you think it's going to do in the future, do you think that uranium stocks generally are expensive or cheap?
WARWICK GRIGOR: You need to look at the difference between potential producers, which can actually cash in on the high prices and exploration stocks. We're seeing a lot of unsophisticated buying of uranium exploration stocks and a lot of them have got success already factored into their share price. You've got a number of companies that are selling for $150 million to $200 million and they don't have one pound of resources. Well, those stocks have to deliver or they'll come down a long way. On the other side of the equation, you've got a lot of emerging companies which, if you have a look at what they could earn, what their cash flows could generate at these prices, they're still cheap. So the market needs to become a bit more sophisticated and look for value and be careful about hype on the exploration side.
ALAN KOHLER: And what are your top three stocks?
WARWICK GRIGOR: Looking at the potential producer category, I think that a company like Uranium King, which is looking at bringing on stream one or two mines in the USA - very good value; Contact Resources has got a high-grade ore body in Peru which could well be a producer; and Monero Mining, a company in which I disclose a vested interest in as a director, I think that's got a lot of very under-priced uranium assets in the Kirgiz Republic and remember, that's a major uranium producing part of the world. So they're my top three.
ALAN KOHLER: Thanks very much for joining us, Warwick.
WARWICK GRIGOR: Pleasure, Alan.

© 2007 Australian Broadcasting Corporation
Copyright information: http://abc.net.au/common/copyrigh.htm
Privacy information: http://abc.net.au/privacy.htm
 

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