What this means is that with Bonaventure planning to drill at the end of this month and through the winter, the company could have enough data by the end of Q1 to report a 100 million pound plus uranium resource at K9.
So if the company is right, investors will be rewarded with a big multi-bagger in the space of just months.
Conclusion
We think that Bonaventure has it right in the sense that exploration companies should focus on company-making projects which offer major blue-sky. Critical mass and district scale land positions are the keys.
At 39 cents (it's actually at $0.50 today), given these properties and the others already in the Bonaventure portfolio, and with the uranium speculative cycle hopefully beginning anew as prices start to tick up again towards $100/lb, BVT in our opinion is an excellent speculation in terms of risk/reward for those who have the risk tolerance and appetite for such plays.
If they get it right, even at our 90% risked number (this math is all hypothetical until they release the grade numbers identified by the drill bit), Bonaventure could be a nearly 30 bagger from present levels. If they miss, and move to other projects, maybe the risk is 50%. To us, that is a great exploration shot and a worthy and worthwhile speculation to get the blood pumping - Bonaventure could be the hot name on everybody’s lips given this optionality, and if they get a whiff at K9.
The author is long Bonaventure Enterprises, in accordance with the conflict and disclosure policy.
duckncover
Number of posts : 179 Registration date : 2007-10-04
The Resource Investor report is interesting as I read this evening. Somehow I felt a bit strange, it seems that the RI people might have been reading our posts as we used 90% discount arguments before to present our case. Furthermore, the calculations they presented are also consistent with our calculation here earlier. I have no communication with the RI people at all.
The RI report is rather conservative this time in fact, as it does not conjecture about the extent of K9 and focuses on one zone only, and even assumes that the mineralization can be half of depth reported in coming out the 90% discount.
But, when in terms of valuation of stock price, the RI report is more optimistic as it attributes about $10 per lb of Uranium in the ground.
I am not sure the market will give $10 per lb of Uranium in the ground, but BVT has several promising projects as well. Including 4-Lakes and North Shore projects, furthermore, K9 has every indication of getting much more than 100 m lb of Uranium.
If any one bothers to read the transaction record between the vendor and BVT, both parties actually seemed to agree that K9 has the potential of having 800 M lb of Uranium, as BVT needs to pay the vendor the last installation of money once 800 M are found.
Just think about it again, 800 M lb of Uranium! If we assign $10 per lb of Uranium, BVT should be north of $50, or 100 bagger from today's closing price. Furthermore, this estimat does not consider 4-Lakes and North Shore properties at all, just K9, and I will not be surprised that these properties will host several hundred of millions lb of Uranium, and thus they will add value for BVT.
This of course can take several more years to achieve, but the story is clear. BVT is the king of Uranium junior as it has probably the best Uranium property (k9) explored by an expert Uranium management, and the potential is excellent.
Great buy at this price! In fact, anything under $1 is a good price.
studbkr
Number of posts : 902 Registration date : 2007-05-24
I personally like BRD.V (see seperate thread). BRD.V is fully permitted and low market cap. Maybe you can compare the two and let us know what you think?
duckncover
Number of posts : 179 Registration date : 2007-10-04
I can tell you one difference in my intial research is that BVT is a pure exploration play - the executives at this point are not considering production as part of their strategy.
They are focused on proving up resources and selling off the package to a major or producer.
BRD.v is a production/exporation play, correct?
I'll check them both out.
danamas
Number of posts : 60 Localisation : Colorado Emploi : Airline Pilot Loisirs : Investing Registration date : 2007-05-30
I really like that avitar for duckncover. I actually remember being told this in school in the 60's. Those were the good old days!
duckncover
Number of posts : 179 Registration date : 2007-10-04
Subject: Did you watch this video? Wed Nov 21, 2007 12:45 am
Danamas, is this the video you watched below? Kind of creepy.
<object><param></param><param></param></object>
We did not practice "Duck and Cover" in my school, but I am a product of the 80's. Check this out. This was a much bigger threat to the US compared to thermonuclear war for my generation...
Home 
Wed Nov 14, 2007 11:57 am