The market has been an absolute disaster, especially for small caps over the last several months. Despite that, we have been on an incredible hot streak in the Canadian markets. Five for our last five, with three of those going up more than 100%:
1. In July we called GobiMin Inc. (GMNFF) (GMN.V) when it was $0.81. It recently had a take-private transaction at $1.84 and is now trading at $1.72 for a 112% gain.
2. In October we called Surge Battery Metals Inc. (NILI.V) (NILIF) when it was $0.10. Material findings of lithium on its property with expectations of more to come has resulted in a $0.285 stock price, a 185% gain.
3. In November we called Fission 3.0 Corp. (FUU.V) (FISOF) when it was $0.12. A massive uranium find has caused the stock to move up to $0.32, a 166% gain.
4. On December 1, we called Equity Metals Corporation (EQTY.V)(EQMEF) at $0.11. It's $0.175 now for a 59% gain.
5. Finally, on December 6, we called Valeura Energy Inc. (VLE.TO) (PNWRF) after the company announced an extremely profitable offshore oil acquisition at $1.45. It' $2.04 now for a 41% gain.
This doesn't include Simply Better Brands Corp. (SBBC.V)(PKANF), which we called on July 13 when it was trading at $0.265. It hit a high of $0.96 eight days later but then a poorly timed financing killed its momentum and it's now trading at $0.22.
Our U.S. calls - Core Scientific, Inc. (CORZ) and Starry Group Holdings, Inc. (STRY) - went up 29% and 66% respectively, one day after we called them along with our new call on FUU.
If you want winners, we have proven that we can find them. Even in a massive bear market for small caps. We are up to 1,013 followers on our ValueTrades blog despite not giving out a lot of alerts, a fact that we think is indicative of a successful, diligent and prudent stock picking history. If you like our picks you can also follow this blog by clicking the follow button on the top of the left hand panel. We have 111 followers so far on here. You can also follow us on Twitter @StockTradePicks which has over 5,000 followers.
We initially stated to close off FUU long positions after a double on it around $0.24. Now we bought back in at a higher price of $0.29 after an absolutely massive uranium find and an expectation that it can double again or come close to it in the coming weeks. We are okay with buying back in higher since the proceeds from the initial win on FUU went into NILI and VLE. From the news release on Thursday:
Kelowna, British Columbia--(Newsfile Corp. - December 22, 2022) - Fission 3.0 Corp (TSV: FUU) (OTCQB: FISOF)("Fission 3" or "the Company") is pleased to announce it has received uranium assay results from the discovery hole PLN22-035 at Patterson Lake North ("PLN") where off-scale radioactivity was previously reported (see Press Release Nov 21, 2022). The rushed analysis returned one continuous 15.0 m interval averaging 6.97% U3O8 including a high-grade 5.5 m interval averaging 18.6% U3O8, which further includes an ultra-high-grade core which assayed 59.2% over 1.0 m. PLN22-035 was the first of three mineralized holes completed on line 00N, in addition to a fourth mineralized hole on line 015S.
Assay results from the remaining drill holes of the fall 2022 program will be released early 2023 as they become available and finalized.
Raymond Ashley, Vice President Exploration, commented
"These initial high-grade assays from the discovery hole PLN22-035 confirm impressive uranium mineralization at the A1 Zone we discovered during our recently completed fall drill program. We are excited to build on these results as we plan for our fully funded upcoming 20 hole drill program."
Drilling Highlights of Discovery Hole:
PLN22-035 (line 00N): mineralized intervals
- 15.0 m @ 6.97% U3O8 (257.5 m to 272.5 m), including:
- 5.5 m @ 18.6% U3O8 (260.0 m to 265.5 m), further including:
- 1.0 m @ 59.2% U3O8 (263.0 m to 264.0 m)
Table 1: Assay Results
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/8110/149229_85ee8b8314d1e970_002full.jpg
Assay composite parameters:
1: Minimum Thickness of 0.5 m
2: Assay Grade Cut-Off: 0.05% U3O8 (weight %)
3. Maximum Internal Dilution: 2.0 m
Composited weight % U3O8 mineralized intervals are summarized in Tables 1. Samples from the drill core are split in half sections on site. Where possible, samples are standardized at 0.5m down-hole intervals. One-half of the split sample is sent to SRC Geoanalytical Laboratories (an SCC ISO/IEC 17025: 2005 Accredited Facility) in Saskatoon, SK while the other half remains on site for reference. Analysis includes a 63 element suite including boron by ICP-OES, uranium by ICP-MS and gold analysis by ICP-OES and/or AAS. All depth measurements reported are down-hole and true thickness are yet to be determined but the Company estimates true thickness of the reported intervals in this news release to be close to reported intervals width.
About Patterson Lake North:
The Company's large 39,946 hectare 100% owned Patterson Lake North property (PLN) is located just within the south-western edge of the Athabasca Basin in proximity to Fission Uranium's Triple R and NexGen Energy's Arrow high-grade world class uranium deposits which is poised to become the next major area of development for new uranium operations in northern Saskatchewan. PLN is accessed by Provincial Highway 955, which transects the property, and the new A1 uranium discovery is located 23km northwest of Fission Uranium's Triple R deposit.
Even though it's only over one meter, a 59% U3O8 mineralization is so ridiculously high, that one piece alone could justify FUU's $103 million CAD market cap. Here's some napkin math on the discovery. The hype will continue as more of the 20 drill hole program will be announced in early 2023. $8 million was raised in a flow-through financing at $0.42 to fund the program, so we don't expect another raise any time soon unless the stock price goes on a major run.
FUU rose 9% on Thursday and followed that up with 8% on Friday. Relatively muted gain given these results, but we think that was a product of the weak market. That gives an opportunity for investors to buy in the low $0.30's, an opportunity we believe won't last long.
Disclosure: We are long FUU.V
