| Late Friday afternoon, while watching Bart Jaworsky, | | | | reduces risk when it comes to uranium exploration and |
| associate mining analyst for Raymond James, discuss | | | | development.In every uranium deal, there is a single |
| his three top uranium stocks on Canada's ROB TV, it | | | | individual who knows what is going on, as Bill Sheriff of |
| again became evident that the very best publicity is | | | | Energy Metals advised us. If you want to know what |
| reserved for those with quality management. Readers | | | | is really happening at Smith Ranch, you talk to Patrick |
| will recognize Jaworsky echoing the very same | | | | Drummond, the plant supervisor. He's been in mining his |
| themes, which have run through our commentary since | | | | entire life, having started off in the coal mines of |
| June 2004, in every feature from ISL mining to U.S. | | | | Scotland. The Power Resources operation draws |
| uranium assets, and from the recent Wyoming series | | | | praise from Wyoming's State Representative David |
| to the widely "How to Choose a Uranium Stock." | | | | Edwards and State Senator Robert Peck. The people |
| Jaworsky picked Energy Metals (TSX: EMC), | | | | who live in nearby Douglas, Wyoming speak highly of |
| UR-Energy (TSX: URE) and Strathmore Minerals | | | | Power Resources.At Uranerz Energy (OTC BB: |
| (TSX: STM; Other OTC: STHJF) as his top three | | | | URNZ), it is Glen Catchpole, who previously ran a |
| choices.What attracts the big time publicity is the name | | | | Wyoming ISL operation, and helped develop Cameco's |
| behind the company. Often it is not the Chief | | | | ISL assets in Kazakhstan. Forum Development (TSX: |
| Executive. If one were to speak to Gene Ramos, | | | | FDC) has Dr. Boen Tan, who helped discover two of |
| Reuter's energy reporter based in New York, the first | | | | the Key Lake deposits in Canada's Athabasca Basin. |
| question he will fire back at you is: "Who is this | | | | ESO Uranium (TSX: ESO) has precious metals |
| person?" Translation: What has he accomplished? Bart | | | | geologist Tony Harvey advising the company. Perhaps |
| Jaworsky astutely focused on "quality of | | | | it will be ESO's Mikwam gold project in northern |
| management." That is a lesson investors should | | | | Ontario that puts this company on the map. With |
| learn.For example, this past week, Strathmore Minerals | | | | Forsys Metals (TSX: FSY), one turns to Graham |
| was fortunate to have a triple play in publicity. On | | | | Greenway, who previously compiled a resource |
| Tuesday, Lawrence Roulston, who writes Resource | | | | estimate of FSY's Valencia uranium property in |
| Opportunities, recommended Strathmore on ROB TV. | | | | Namibia for Rossing Uranium Ltd. Max Resources |
| On Wednesday, Bill Murphy's Midas Report | | | | (TSX: MXR) has Clancy Wendt, who previously drilled |
| recommended Strathmore. On Friday, Jaworsky | | | | the Utah property, and expects to again find uranium in |
| featured Strathmore on ROB TV. Who's doing their | | | | the same place he found it more than 25 years ago. |
| public relations? In reality, the media attraction stems | | | | Mr. Anti-PR, Norman Burmeister of Kilgore Minerals |
| from the quality of management. When Spencer | | | | (TSX: KAU), fails to boast about his stint as chief |
| Jakab of Dow Jones (and Barron's) wants a good | | | | geologist for Silver Standard (NASDAQ NM: SSRI) or |
| quote about uranium, he turns to David Miller, president | | | | his former Bull Run gold mine. Yes, it is mentioned on |
| of Strathmore. Miller was chief geologist for Cogema's | | | | his website. But, Norm is the kind of guy who quietly |
| ISL operations in the United States. Again, who are you | | | | lines up a drill rig for his Idaho gold property, fairly |
| and what have you done?In the case of Energy | | | | certain he's going to hit something big this summer. |
| Metals, when it comes to ISL mining, the engineer in | | | | Then again, he doesn't issue a wave of news |
| charge of developing their U.S. assets is Dennis Stover. | | | | releases to pump up his stock. These are the kinds of |
| His claim to fame was designing the Smith Ranch ISL | | | | people the media just love to interview. They all have |
| facility now owned by Cameco's Power Resources. A | | | | the "hidden" story that makes the reporter's feature |
| review search of the ISL literature will inevitably turn up | | | | work for his readers, viewers or listeners.These |
| Dennis Stover's name. Stover has proven himself, built | | | | companies personify the qualities we investigate |
| a respectable reputation and inevitably will attract | | | | before writing about them in this column. Mainly, it is the |
| media attention at some point.Finding a Wyoming | | | | quality of management that sets apart the possible |
| geological textbook that omits the name of William | | | | winners from the likely losers. Everything flows out |
| Boberg, chief executive of UR-Energy, is easier said | | | | from that key point. If management really does know |
| than done. His papers and presentations through the | | | | in which direction the company should be going, they'll |
| late 1970s and 1980s helped define the extent of | | | | find the right properties. Fund managers will be eager |
| Wyoming uranium geology. With previous experience | | | | to finance them. Investors will be less fearful about |
| at Conoco and Kennecott, as a uranium geologist, | | | | speculating on the company's prospects. Eventually, |
| Boberg's endeavors to bring his company's Lost | | | | even the most reluctant newsletter writer will be |
| Soldier property into full production will, at some point, | | | | compelled to feature the company, or at the very |
| attract strong media attention.What brings the media | | | | least acknowledge the company has a shot. As long |
| to a company's door is not the tout by a self-serving, | | | | as the commodity price continues running higher, it |
| self-absorbed and megalomaniac newsletter writer, but | | | | becomes a win-win situation for those participating. |
| all of the attributes we featured in "How to Choose a | | | | Most of all, at some point, the mainstream media will |
| Uranium Stock." Quality management, great (and | | | | stumble across such companies, or someone will bring |
| proven) properties, hidden value in the company, and | | | | the company to their attention. And then, you get the |
| loads of cash help simplify an investor's decision. | | | | kind of rallies we've seen in Strathmore Minerals and |
| Jaworsky warned about Kazakhstan, an area we've | | | | some others.James Finch contributes to and other |
| avoided coverage on because of the political climate | | | | publications. His features on uranium stocks and the |
| (ditto for Mongolia). Focusing on North America | | | | sector have been widely quoted across the world. |