“The (uranium) companies are so new,” Halvorson said. “Some of them aren’t really that acquainted with their own assets, let alone the assets of other companies. It’s not like the oil and gas business where you’ve got … in western Canada, there are a dozen or fifteen blue-chip engineering firms that provide reserve and reservoir evaluations. If you see one of those engineering reports, you can really put a market value on those assets.”

Not so in the uranium business. With uranium assets, Halvorson explained, “A lot it is historical work, some of them are National Instrument 43-101 and some aren’t.” But he warned that despite the regulatory insistence that companies file independent geological documents confirming their resources, “You have to be careful if you run out and buy some 43-101 resources.” He added, “I’m not sure that one would solely base investment decisions on them.”

For example, he described how it might be possible that a company could only solution mine (ISR uranium recovery) the resource. What happens if after doing the tests, the company discovers solution mining won’t work? “That is something that will concern me,” he told us. “I think there are an awful lot of projects out there that are being called ‘good projects’ by companies that have them. And I don’t think these people have a clue as to what is required for solution mining.”

If so, then what should investors be looking for in uranium mining stocks? “At this stage, I would try to look at undervalued companies because that’s the least risk,” Halvorson advised. “I don’t think I would look at the market leaders, per se. Companies like Cameco and Denison are awfully pricey. International Uranium is pricey in my opinion.” So where would Halvorson look today? “I would look at the undervalued ones, the ones that have projects, but for some reason maybe not as much traction in the market,” he suggested. “I think ultimately the market will recognize those values or they’ll get taken over at premiums.”

Two of Halvorson’s favorites came from his network. “I originally got involved in Strathmore Minerals because I knew they had some good properties and some very good consultants and contacts in the business,” he explained. “And, they have David Miller, who really knows the business inside out. Talking to him, I got comfortable with those U.S. assets. So, I literally backed the truck up and bought lots of stock.” Halvorson subsequently became a director of Strathmore Minerals.

Another Halvorson favors is Kilgore Minerals. “With Kilgore, it is because Norm Burmeister had such a good track record with Silver Standard and Bull Run,” Halvorson said. “Norm is the kind of guy who has a great appreciation for an economic play. I got involved with Kilgore fairly early on and was semi-responsible for the stock moving out of the 30 - 50 cent range. Norm has a huge gold property. We both laughed about Kilgore’s major downside, and he added, “There’s a company that if it was aggressively promoted, would probably be trading at maybe three times where it’s at. Their gold property is probably worth what they trade for.”

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