Pitchstone (PXP) – A speculative buy

by JDH on November 25, 2006

Recommendation: Strong Buy (Speculative)

You can read more about this company on the Pitchstone Web Site. According to their website, Pitchstone Exploration Ltd. is a public company exploring for uranium in Canada. The company was created to acquire highly prospective properties during a depressed price cycle and add value through exploration as the market improved.

Pitchstone began acquiring land in early 2003 in the heart of the eastern Athabasca Basin uranium district in proximity to the major, high-grade uranium producers. Currently the company owns 50 to 100% interest in the mineral rights to more than 200,000 hectares (500,000 acres) of land situated in the eastern Athabasca Basin, Saskatchewan and in the Hornby Bay Basin, Nunavut and Northwest Territories. The Hornby Bay projects include the Mountain Lake deposit, which contains an Inferred Mineral Resource (NI 43-101 compliant) of 8.2 million pounds U3O8 contained in 1.6 million tonnes at an average grade of 0.23% U3O8, above a cutoff grade of 0.10% U3O8.

The company has also entered into an agreement with Cameco Corporation and Motapa Diamonds to jointly explore Motapa’s extensive uranium exploration licenses in the Franceville Basin of Gabon, west Africa.

Pitchstone made a high of $2.42 on March 23, 2006, and got all the way back to $2.40 on Friday. That mean’s if the stock goes up 3 cents, it will have made a new high, for the first time since March, and that’s the perfect time to buy.

Of course this is a speculative company, so don’t bet the farm on this one; this is for risk capital only.


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