Brien Lundin has cast his eye over three resource stocks recently and rates two a 'buy' and one a 'hold'.
Writing in the Gold Newsletter, he looked at Canalaska Uranium Ltd (CVE:CVV) , Energy Fuels Inc (TSE:EFR) , and Avrupa Minerals (CVE:AVU), whose shares are up over 14% on the day.
Prospect generator Canalaska is joint ventured with Cameco Corporation on the West McArthur uranium project in Saskatchewan, and is a "solid bet" on mineral discoveries and a 'buy' at current levels.
Cameco splashing the cash...
Cameco plans to spend $1.9mln for 2017 on both geophysical work and drilling, which Lundin is encouraged by despite the difficult environment for uranium.
"Separately, Canalaska recently reached an agreement with its Korean joint venturers at the Cree East uranium project, whereby Canalaska will buy back the joint venturers' 50-per-cent interest. The joint venturers have already spent $20-million to explore Cree East over the last decade. The ample data they have provided should help Canalaska attract fresh interest to the project," says Lundin.
Meanwhile, Lundin has long admired producer Energy Fuels' uranium projects in the US, including its Nichols Ranch ISR (in situ recovery) project in Wyoming and its White Mesa conventional mill in Utah.
The company also owns ISR assets in Texas that are collectively named Alta Mesa. Add in the uranium and copper potential of Energy Fuels' Canyon project in Arizona, "... and you have the makings of a significant near-term producer," says Lundin
He repeats a 'buy' on the share.
Avrupa rated a 'hold' pending assays...
Finally, Avrupa, is rated a 'hold' as it and joint venturer at the Slivovo gold project in Kosovo, Byrnecut International, have begun their 2017 drill program.
The 5,700-metre program will test at least six targets and the aim is to add another 250,000 ounces to Slivovo's resource estimate.
Lundin notes that Avrupa will own just a 15% interest in Slivovo once Byrnecut completes its earn-in commitments, and that with such a small position, drilling will need to turn up some impressive results. He keeps the stock as 'hold' while he awaits initial assays.
Canalaska shares were unchanged at $0.34; Avrupa Minerals shares are up 14.29% to $0.12 each and Energy Fuels shares are down 1.9% to $2.07 each.