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Mawson Resources (v.MAW) : Gold & Uranium


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Market Cap : C$28.1 Million = 20.1 Million shares x $1.40

U. Resource: 110 million lbs

Price/ lb. : $0.25, grading 0.040%


Daily Chart ... update : Daily-12mo : Target-C$2.25


(Here is what Steve Saville says):


Mawson Resources (TSXV: MAW), a company focused on exploring for uranium and gold in Sweden.


MAW's primary focus is on uranium and the company has several prospective uranium projects in Sweden. The company reports a POTENTIAL resource, based on historical data, of 130M pounds of uranium oxide (U3O8) across three of its projects. Here's the breakdown:


- Tasjo: 116M pounds

- Duobblon: 11.6M pounds

- Klappibacken: 2M pounds


None of the above resource estimates currently meet NI 43-101 requirements so they should not be relied upon for valuation purposes. They are, however, based on extensive exploration work carried out in the past. The resource potential estimated for the Tasjo project, for example, is based on the results of 190 drill holes.


The main reason we are going to add MAW to the TSI Stocks List at this early stage of development is that the company's market valuation is low enough that it will be a value proposition even if the actual resource proves to be only one-quarter the current 'guesstimate'. To be specific, MAW's current market cap is US$26M (26M shares at C$1.16/share), so if the resource turns out to be only 30M pounds of U3O8 then MAW would still be trading at less than US$1 per pound of in-ground uranium. This is much lower than most exploration-stage uranium companies.


Another reason to be adding MAW to the Stocks List at this time -- in the face of considerable general market risk -- is that the stock does not look risky from a technical perspective. As evidenced by the following chart, MAW rocketed higher between the beginning of November and the middle of January but has since been consolidating. It has retraced about 50% of its spectacular run-up and has strong support within 15% of Friday's closing price. Barring a total collapse in the resource sector of the stock market, a drop back to support at around C$1.00 probably describes the maximum downside potential over the next few months.


In our opinion, the two main risks associated with MAW are:


1. Geological: At this early stage we can't be confident that the quantity or quality of the resource will be sufficient to enable uranium to be profitably mined.


2. Political: Sweden's current government does not favour uranium mining.


Taking into account the opportunities and the risks, we think MAW is a reasonable speculation within 10% of Friday's closing price (C$1.16).


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Corporate Website :

Stockhouse Bboard:

Advfn thread, MAW : http://www.advfn.com/cmn/fbb/thread.php3?id=9860975

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