NexGen-Like Uranium Hit Lifts Shares 62%

CanAlaska Uranium's work
with Cameco in the 
Athabasca Basin hits 
NexGen Energy-like mega-grades.
Below please.

Plus: Bitcoin & Gold | Osino Mining’s China Offer | PDAC Leaders

TCRs,

CanAlaska Uranium

This just in (Wed. Feb. 28) from the holder of 850,000 acres of concessions and other mineral interests in Canada’s Athabasca Basin: sizeable grades and lengths from a uranium exploration that one day might rival might Nex-Gen Energy‘s success in the Athabasca Basin.

The headline grades below from CanAlaska and Cameco‘s West McArthur project are boosting the stock 50% Wednesday in extreme trading.

Uranium graphic courtesy of Laramide Resources

(CanAlaska shares CVV CVVUF closed 62% higher in Toronto trading. Of note, on Jan. 31, when spot and contract uranium prices were setting fresh highs, CVV shares traded 7 million shares; Wednesday’s total was 6.2 million. More on trading below, with stock technicals.)

Drill hole	From (meters)	To (m)	Length (m)5	Average Grade (% eU3O8)6
WMA082-41,2	796.6	813.4	16.8	13.75
Including	798.6	803.3	4.7	40.30
Including	804.9	805.5	0.6	4.16
Including	807.0	809.4	2.4	13.54

These are so-called “unconformity” targets at the project’s Pike Zone. The hits include the near-14% one and the 40% one above. Respectable lengths.

Before the news several days ago, CanAlaska CEO Cory Belyk, a trusted uranium source for The Calandra Report, told me,

“We are dirt cheap, in my view. Results are coming from persistent good work from a very talented team (ex- Cameco and Orano). I just brought in Misty Urbatsch from Cameco marketing team – I have known her a long time and she is very U-market savvy and knowledgeable.”

The widths and grades at CanAlaska and Cameco’s CCJ West McArthur project come about 35 km or so west of Cameco’s McArthur River uranium mine. See map please.

West McArthur project for CanAlaska and Cameco *Click for larger image please.*

The NexGen discoveries at its Arrow Deposit (Rook I project) raised the grade-bar for all uranium explorers in the Athabasca Basin (Saskatchewan, Canada).

You can read the release here please. I own the shares and have for ages, having profited nearly every time I bought and sold it. Right now, I hold.

The extreme gains this week, I remind TCRs, could precede an equity offering. We’ll see. On Thursday, Leap Day, Feb. 29, CVV stock lost about 12%.

CanAlaska is a $110 million CAD market value. It raised about $12 million CAD in December with equity, some of it flow-thru for exploration only, and with 2-year warrants. So that is in the bank: lasst reporting period msrked $14 million.

I will see Cory Belyk and other uranium-execs and geos at PDAC — see below please.

The technicals for the stock are such, via robotics: CVV appears to be in a strong bullish trend. Its 200-day moving average is upwards sloping and the MACD histogram is above 0 and rising.

Also: momentum for CVV is strongly bullish. The 14-period Slow Stochastic Oscillator is rising, as investors pay higher prices for shares.

(TCRs, I own five uranium-cos — see previous reports please for details.)

Bitcoin Update

Bitcoin added $200 billion to a value now at $1.2 trillion the other day. The digital and blockchain-driven currency is seen as “stealing” investors away from gold and other metals as a store of value.

Screenshot 2024-02-28 at 10.13.55 AM.png

Reverse thinking says bitcoin growth eventually will lead to central banks’ selling of U.S. dollars. Weaker dollar values are supposed to boost gold’s prices, or at least the non-U.S. buying of gold.

Not yet. The DXY dollar currency index continues to hold lofty levels. See London trader Andrew Maguire references below please.

(By the way, that’s a $1.2 million bar of Eagle Gold Mine (Yukon) bullion I hold in the above logo and not bitcoin.)

I am sure folks will have much to say about this all day Sunday at the PDAC Investment Leaders Forum in Toronto. (See below please — I am on a panel.)

Young Landon, who lives across the street from us, mines bitcoin from an operation in Marin County, California.

Six weeks ago, he told me to add some BITC to the pile here at home. His reasons were the same as what observers are saying now: the “halving” of mined bitcoins just ahead of us in April; the nine bitcoin ETFs approved for stock training; non-sovereignty of issuance.

I owned BITC four years ago directly in two accounts (Coinbase and Gemini). I sold for modest profits at the time.

At the $62,000 price Wednesday (all-time high $64,000 in late 2021), I now own Fidelity’s ETF, FBTC; and iShares’ Bitcoin Trust IBIT after taking Landon’s advice.

I sold some of the FBTC trust — about a third — today-Wednesday for a 20% profit — and I am using the USD to purchase more Ivanhoe Mines IVN; more Ivanhoe Electric IE; and more Osino Resources OSI OSIIF (see below please).

(I also own plenty of the Sprott Physical Gold Trust CEF and the Aberdeen Platinum Trust PPLT.

I have a bunch of TCRs asking whether a synthetic bitcoin is slowly (or rapidly) usurping physical gold (and silver, platinum) as an investment class?

Chris Powell at pro-gold trade group GATA.org keeps an eye out for worthy analysis on the subject — recently this from London trader Andrew Maguire.

Andrew is brilliant, as the Brits say, when it comes to gold metrics.

He says — and this was a week or more ago — that commodity trading advisers have “dumped” at least $3 billion into bitcoin directly and another $5 billion into the bitcoin ETF trusts. Please see Andrew’s latest.

Osino Mining Resources

As soon as Namibia’s Osino unveiled the name of the China cash buyer ($368 million CAD) in the wings, $5.6 billion gold miner/conglomerate Sintai, investors shaved 16% off the OSI OSIIF price. [See Osino press release please.]

It is a reaction to regulatory risk, Canada and Namibia securities officials perhaps apprehensive about a Shanghai-traded public entity buying a Canada-traded and Namibia-traded public one.

I touched base with Heye Daun in Namibia. He is CEO of Osino, owner-developer of the 13-year gold project Twin Hills and surrounding expanses of land with minerals, including lithium.

“There are no concerns and the risk of not closing is very low, Heye says. “The approvals in China and Namibia are straightforward and should not take much longer than 3 to 4 months. Investment Canada is no issue either as we are under the (value) threshold. This is not a critical metal and we have no assets in Canada.”

I have owned OSI for three-plus years and bought more this week at the fallen price of 26-cents USD.

*Gold market value = multiplying gold price by world’s above-ground gold reserves of 212,000 metric tons.

PDAC: the annual Toronto metals investors, prospectors and developers conference arrives in 2 weeks.

Thank you to Naomi Nemeth of Lavras Gold and Maureen Owens at PDAC.The forum runs all day on the opening day, Sunday March 3.

My panel’s details: Investment Leaders Forum: March 3 3:35 p.m.

Hall E, on the Investors Exchange show floor, 800 level.

Kai Hoffman of Frankfurt, an investor, speaker and conference organizer, is moderating the panel.

Panel title: The global economy vs. the resource sector: Finding a win-win situation

I hope some of our TCRs can make it. Matt Geiger, trusted source and SF fund manager (MJG Capital), is also on a panel there in the morning.

Also see please Ivanhoe Mines:

— Thom Calandra

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Thom Calandra is a writer and an investor. Research and material are meant as editorial opinion. He is not a professional investment adviser. Please do not consider his reporting as a recommendation to buy or sell securities.