Resource World Magazine

AT THE M ARK E T Rod B la ke Over the years, I've been to many Prospectors and Developers Conferences (PDAC) in Toronto, (some would say too many, but that's a story for another time), and I've witnessed the event grow to be the largest of its type in the world, attracting some 30,000 miners and investors from all areas of the globe. I was a little apprehensive about going to this year's conference because after nearly two years of a very rough bear market in resource stocks, I wondered if it would really be worth the time and money to attend what many were predicting to be a very depressed event. In fact, many of the media headlines prior to the conference accentuated how many of the junior resource companies attending PDAC 2013 were running out of money and had little hope of getting financing in this market. Some pundits even suggested that one-third of the junior resource companies represented in the Investors Exchange wouldn't be around in their present form for PDAC 2014 – a very negative prelude to an investment conference indeed. But to my pleasant surprise, instead of a mood of doom and gloom, there was a good deal of energy and optimism at the show. There also seemed to be a greater number of company presidents at their booths than I remembered in recent years. I took this as an encouraging sign because instead of staying away and leaving the task to others, the CEOs were there to interact directly with investors, financers and deal makers alike. In previous years, when things were good and treasuries were full, the presidents were more complacent and often felt their time was better spent elsewhere, leaving public relations people at the booths to attract and talk to investors. This year of course things are tough, budgets were cut and the executives rolled up their sleeves and joined the rank and file to work the booths. Those who so offhandedly predict the demise of the junior resource sector fail to understand the mettle of the people who run these companies. Junior mining is not some new, start-up endeavor. It's an industry whose roots and work ethic goes back to the gold rush years of the 1850s. These people know what it takes to survive. I'd say, that from what I saw at PDAC, the end of the junior mining industry as we know it is certainly not at hand. The presidents were at their booths, inves- tors were being informed and deals were being made. In recent years, PDAC seemed to mark the top of the market. This year, PDAC 2013 may well have marked the bottom of the market and, with a little luck, PDAC 2014 will be bigger and better than ever. I'd better book early. n U3O8 Corp. [UWE-TSX; UWEFF-OTCQX] is a Canadian uranium exploration company with a focus on developing advanced uranium portfolios in South America. The company has grown seven-fold from 2010-2012 with multiple NI 43-101 compliant resources in Colombia, Argentina and Guyana. is anticipated in the use of nuclear energy. UEX Corp. [UEX-TSX] has 18 uranium projects either 100% owned, joint ventured or under option totaling 308,320 hectares (761,875 acres) located in the eastern, western and northern perimeters of the Athabasca Basin. Uracan Resources Ltd. [URC-TSXV] has an option to earn from UEX a 60% participating interest in the Black Lake uranium project in north- ern Saskatchewan. Uranerz Energy Corp. [URZ-TSX, NYSE MKT; U9E-FSE] has been focused on constructing its first ever ISR Mine in the Powder River Basin, Wyoming. The company has reported NI 43-101 uranium resources for seven of its over 30 uranium projects in the area totalling over 15 million pounds U3O8 averaging 0.103%. In Texas, Uranium Energy [UECNYSE MKT] has publicized their inferred resource estimate for the Burke Hollow ISR deposit of 2.89 million pounds of U3O8. Permitting work has commenced with additional exploration and diamond drilling planned for 2013. In Wyoming, Ur-Energy Inc.'s [URETSX; URG-NYSE MKT] Lost Creek's uranium project comprised of six tenures and 17,000 hectares is set to go into production later this year. The Preliminary Economic Assessment estimates that the project will generate US $283 million before taxes and produce 7.38 million pounds of U3O8. Yellowjacket Resources Ltd. [YJKTSXV] is exploring uranium projects near Patterson Lake in the Athabasca Basin area. Recently, the company agreed to acquire additional claims contiguous with the Patterson Lake South claim group. The new claims are collectively known as the Orr Peninsula uranium property. In February, Yellowjacket acquired a large portfolio of claims covering 329,500 acres in the Athabasca Basin that will become a main focus for the company. n The presidents were at their booths 30 www.resourceworld.com Rodney Blake is an Investment Advisors with Canaccord Wealth Management, a division of Canaccord Genuity Corp, Member-Canadian Investor Protection Fund. The information contained in this article is drawn from sources believed to be reliable, but the accuracy and completeness of the information is not guaranteed, nor in providing it does Rodney Blake, Canaccord Genuity Corp, or its subsidiaries, or affiliated companies, assume any liability. This information is current as of the date appearing in this article, we do not assume any obligation to update the information or advise on further developments relating to these securities. This article should not be considered personal investment advice or a solicitation to buy or sell securities. Canaccord Genuity and holdings of its respective directors, officers and employees and their associations, from time to time may buy or sell any securities mentioned herein. The views expressed are those of the author and not necessarily those of Canaccord. Rodney Blake can be reached at 604643-7567 or rod.blake@canaccord.com APRIL 2013

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