| Summary: Sprott Asset Management uranium | | | | forward into production. I think people are |
| expert Kevin Bambrough talked with us about | | | | going to wake up and start giving them more |
| the "second leg" of the current uranium bull | | | | credit. I think that positive permitting |
| market. Bambrough names his favorite uranium | | | | developments will continue to occur in places |
| companies, where he believes there is still | | | | like New Mexico. Obviously, the friendly |
| room for growth.StockInterview: How does the | | | | environment in Wyoming for bringing on |
| major nuclear energy build up you envision | | | | production will make Energy Metals perform |
| impact uranium mining?Kevin Bambrough: | | | | very well going forward. It's going to be |
| | | | fantastic for shareholders if it can |
| I think, with the passage of time, all types | | | | duplicate the move that Paladin has over the |
| of mining will again be done again in the | | | | last year or so.StockInterview: You said |
| United States. They're going to need the | | | | earlier "common sense would prevail" in New |
| supply. There is no alternative. If you look | | | | Mexico. How does that impact Energy |
| at Energy Metals Corporation (TSX: EMC), part | | | | Metals?Kevin Bambrough: |
| of their plan is to start with some ISL | | | | |
| operations, some of which will come at a | | | | New Mexico is more in the back burner for |
| facility that's already fully permitted. Then | | | | now, but I think the stock (Energy Metals) |
| eventually, they're going to try to move into | | | | will continue to perform well as the |
| places like New Mexico, where I think with | | | | regulatory environment continues to improve |
| the passage of time, common sense will | | | | in the area. I should touch on Strathmore |
| prevail and people will become more | | | | Minerals (TSX: STM). We've been pleased to |
| pro-mining for uranium.StockInterview: We now | | | | see they've been bringing out their (National |
| have about ten times the number of uranium | | | | Instrument) 43-101's on a couple of their |
| companies, some purporting to be a "uranium | | | | (New Mexico) properties and show an increase |
| company," than when we first started covering | | | | in reserves. I believe they're doing some |
| this sector. How is this sector going to play | | | | work right now on their Dieter Lake project |
| out?Kevin Bambrough: | | | | up in Quebec that could be interesting. |
| | | | They've got some good resources and reserves. |
| It's been very difficult to try and follow | | | | I think at some point, someone is going to |
| what everyone is doing in this space. Right | | | | want to cut some deals with them, or they're |
| now, the uranium story is looking so good. | | | | going to just keep chugging along and |
| It's still relatively early that anyone seems | | | | bringing things forward.StockInterview: You |
| to be able to raise some money, tell a story | | | | were excited about Tournigan (TSX: TVC) the |
| and perform well. It's unbelievable how the | | | | last time we talked. How is that one turning |
| sector has performed this year. With the | | | | out?Kevin Bambrough: |
| passage of time, the guys with the real | | | | |
| resources, who can also develop them and | | | | Tournigan is really developing into a great |
| produce, are going to do well. The other guys | | | | story. Originally, when we first got into |
| are going to have to keep coming back to the | | | | this, it looked reasonably valued and |
| market, raising capital, raising capital and | | | | interesting on its gold prospects. When they |
| diluting their shareholders in order to try | | | | picked up deposits in Slovakia, we got in |
| to drill and find something. Of course, there | | | | deeper. I think the story just keeps getting |
| is going to be the odd one here and there | | | | better as we look more into what they |
| that actually strikes something big. It'll | | | | actually may have in these properties. |
| give people hope but, that's not the way we | | | | They've also brought on a new hire, who was |
| want to invest.StockInterview: Have the | | | | the head of the Slovakia uranium program |
| uranium stocks gotten out of control? Are we | | | | years ago. He's joined the team and he's |
| looking like another train crash like the | | | | basically said that the Jahodna district) is |
| internet stocks of a few years ago?Kevin | | | | probably not just a 3km strike length but |
| Bambrough: | | | | probably more of a 7km potential. The current |
| | | | resource estimates are only based on 500 |
| The majority of stocks in the uranium space, | | | | meters of the zone. They're going to start |
| we will not own. We only own a really select | | | | stepping out and drilling it.We're hoping it |
| few, probably just over a dozen. We have some | | | | could get much bigger. It's open at depth as |
| explorers, we have some producers and we have | | | | well. There is also reasonable chance this |
| some, what we believe to be emerging | | | | could become a large uranium district. |
| producers and we're sticking with that | | | | They've found out there were a lot of other |
| mix.StockInterview: So which companies do you | | | | targets in the area, in the past. They are |
| like?Kevin Bambrough: | | | | going to try to work these targets as well. |
| | | | Slovakia is a major past producing country. A |
| Obviously, there is a lot of mud slinging | | | | lot of its power currently comes from |
| that goes on in all sectors of the mining | | | | nuclear. They have two other properties in |
| business. You talk to different people, and | | | | Slovakia with resources. They're going to |
| they say, "Oh this is going to be higher | | | | drill and are hopefully going to show better |
| cost, that is going to be higher cost, and | | | | grades and larger resources, with time. Of |
| our properties are better than their | | | | course, you're always hopeful, no guarantees, |
| properties." From where I sit, Energy Metals | | | | but our experience is that in the uranium |
| (TSX: EMC) was one of the companies to get in | | | | business: As you go and drill old properties, |
| there early, and pick up a lot of known | | | | redo old drill holes with larger cores, you |
| resources and databases. I think they've done | | | | get better recoveries and can show higher |
| a great job of doing exactly what they said | | | | grades. That seems to have been the case for |
| they were going to do. We started funding | | | | both Tournigan and Western Prospector (TSX: |
| them in the early days. Those are the (types | | | | WNP). I should also mention that on the |
| of) companies I want to stick | | | | Jahodna property, it's interesting that, not |
| with.StockInterview: What do you like about | | | | only did the uranium grade jump but also the |
| Energy Metals?Kevin Bambrough: | | | | molybdenum grade jumped up substantially to |
| | | | where this is now some very valuable |
| I'm happy to say that we're a very large | | | | rock.StockInterview: Any final |
| shareholder of Energy Metals, and I continue | | | | recommendations?Kevin Bambrough: |
| to love the story. The most recent | | | | |
| presentation they gave shows what the company | | | | SXR Uranium One (TSX: SXR), I think it's a |
| will look like after they fully complete the | | | | great story. There's no doubt that the |
| Standard Uranium and Quincy Energy mergers. | | | | uranium is there, but some people debate |
| The combined entity in their presentation | | | | about how difficult the mining is going to be |
| shows to have about 236 million pounds of | | | | and what the cost will ultimately be. But |
| uranium resources, I believe, and a market | | | | they've got a good gold credit in there to |
| cap of around C$360 million with $60 million | | | | help bring down the overall cost. Again, we |
| in cash. We're still a shareholder of Paladin | | | | believe the uranium price is going to be much |
| (TSX: PDN). I think we're up about 40 or 50 | | | | higher than most people believe for a lot |
| times on the first shares we bought. If you | | | | longer. We love investing in companies with |
| compare the two, you've got a market cap of | | | | huge resources and plenty of leverage to both |
| close to C$2 billion on Paladin with around | | | | uranium and gold.StockInterview: Do you still |
| 180 million pounds. If you look, you'll | | | | see some of your uranium holdings, certain |
| notice the real big move in market cap | | | | ones as cheap, still in play, and to be |
| occurred, when Paladin started to get close | | | | looked at?Kevin Bambrough: |
| to production and they signed contracts.Now | | | | |
| Energy Metals has about one-fifth of the | | | | Most definitely, and we'll be helping to |
| market cap and a fully permitted ISL facility | | | | finance some all the way to production.James |
| down in Texas. They're at the point where | | | | Finch contributes to and other publications. |
| they're going to sign the contracts and move | | | | |