Topic: How To Invest

Hi Pat: Can I get your view on Strateco Resources? Thanks.

Article Excerpt

Strateco Resources, $0.56, symbol RSC on Toronto (Shares outstanding: 122.7 million; Market cap: $68.7 million), is developing its Matoush uranium project, located in the Quebec’s Otish mountains, 275 kilometres north of Chibougamau. The uranium oxide ore at Matoush appears to be of an exceptionally high grade. Moreover, an early-stage preliminary assessment study has shown that a mine on the site could produce 2 million to 2.7 million pounds of uranium oxide over seven years. A mine would cost a total of $341 million to build. Over the next two years, Strateco hopes to complete 120,000 metres of drilling at Matoush. It will have to confirm a resource base large enough to support its projected mine. The company will also have to complete an environmental study for the project. Such studies are likely to become increasingly difficult for uranium mines in Quebec. Well-publicized protests by environmentalists are now prompting more restrictive Quebec government regulation of uranium exploration and mining. As well, the…