{kanada_flagge}Searchlight Resources (TSXV:SCLT) is one of our favorites in the coming year. Why? In our opinion, the market has not (yet) understood that Searchlight has already made a significant uranium discovery.
There are reasons for this: First, Searchlight is not inherently a uranium explorer at all. The discovery on the Kulyk Lake project was the lucky by-catch of geophysical surveys targeting rare earths. The rare earths were confirmed on the project, but a little further south this 2 kilometer by 500 meter anomaly appeared. The measurements on 50 meters height in the line distance of also 50 meters are considered as very reliable. One of the proves for the correct calibration of the instruments is that known uranium deposits on Kulyk Lake were correctly recorded. The other reason why the stock has not reacted could be that the incipient uranium boom received a temporary damper just as Searchlight went public with its results.
By year’s end, the company had raised enough money to go on site in the spring and test the anomaly.
Searchlight today is still a microcap (<$10 million CAD market cap) with a huge portfolio of gold and non-ferrous metal properties around the forgotten Flin Flon mining district in Saskatchewan. CEO Stephen Wallace’s investment thesis is that this district is unjustly forgotten and the properties are (too) cheap. In the meantime, Searchlight has secured some 1,300 km² of licenses. The recent uranium discovery on Kulyk Lake (now also 317 km² in size) temporarily puts all gold, rare earth or copper targets in the shade. Next spring, Searchlight will answer the question of what the uranium discovery at Kulyk Lake is worth. In the best case, the answer is the next Patterson Lake (Fission Energy) or even the next Elite Arrow project (Nexgen Energy). In the worst case, geologists find nothing. That’s what makes exploration so exciting. We’re keeping our fingers crossed for Searchlight, of course.
Figure 3: The gauges see red. Red stands for high-grade uranium! The anomaly is 2 kilometers long and 500 meters wide. The measurements are considered to be extremely accurate, as even known – less contiguous uranium occurrences on Kulyk Lake have been correctly detected.
Risk notice: GOLDINVEST Consulting GmbH offers editors, agencies and companies the possibility to publish comments, analyses and news on http://www.goldinvest.de. These contents serve exclusively the information of the readers and do not represent any kind of call to action, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. Furthermore, they are in no way a substitute for individual expert investment advice and do not constitute an offer to sell the stock(s) discussed or a solicitation to buy or sell securities. This is expressly not a financial analysis, but explicitly promotional / journalistic texts. Readers who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. There is no contractual relationship between the GOLDINVEST Consulting GmbH and its readers or the users of its offers, because our information refers only to the company, but not to the investment decision of the reader. The acquisition of securities involves high risks, which can lead to a total loss of the invested capital. The information published by GOLDINVEST Consulting GmbH and its authors is based on careful research. Nevertheless, any liability for financial losses or the content guarantee for topicality, correctness, adequacy and completeness of the articles offered here is expressly excluded. Please also note our terms of use.
According to §34b WpHG and according to paragraph 48f paragraph 5 BörseG (Austria) we would like to point out that GOLDINVEST Consulting GmbH, partners, authors, principals or employees of GOLDINVEST Consulting GmbH hold shares of FYI Resources and therefore a conflict of interest exists. GOLDINVEST Consulting GmbH also reserves the right to buy or sell shares of the company at any time. Under certain circumstances this can influence the respective share price of the company.
GOLDINVEST Consulting GmbH currently has a remunerated contractual relationship with the company, which is reported on the website of GOLDINVEST Consulting GmbH as well as in the social media, on partner sites or in email messages. The above references to existing conflicts of interest apply to all types and forms of publication used by GOLDINVEST Consulting GmbH for publications on FYI Resources. We also cannot exclude that other stock letters, media or research firms discuss the stocks we recommend during the same period. Therefore, symmetrical information and opinion generation may occur during this period. No guarantee can be given for the correctness of the prices mentioned in the publication.
