December 12 2007 – How could a junior mining company, having strategically-located properties and partners that are major mining companies, have a stock price that only trades at or near book value?
Purepoint Uranium Group Inc. is a Canadian exploration and development company, currently focused on uranium exploration in the world-class Athabasca Basin in northern Saskatchewan, where it has a large land position.
eResearch analysts, Michael Wood, B.A. (Sc.) (Mining Engineering) and Bob Weir, B.Sc., B.Comm., CFA, are maintaining their “Speculative Buy” Recommendation on Purepoint’s stock. The 12-month Target Price is $1.05 per share. Longer term, as drill results are proved up, the Analysts have set a 3-year price objective of $2.10 per share.
Highlights from the report include:
- Joint ventures with major uranium miners Cameco and AREVA.
- Funded two new drill companies to secure drilling for projects.
- At stage of development where real potential of properties can be unlocked.
- Geological and operational variables favour discovery.
- Uranium price expected to remain buoyant.
- $9 million spent on exploration and development in 2007 and $10 million for 2008.
- As yet, no NI 43-101 resource estimates.
- Stock selling at only 1.0 times book value.
This Press Release was prepared by eResearch and was not vetted by Purepoint Uranium Group Inc. Further, the Recommendation and Target Price contained in this report are strictly those of eResearch and, due to securities laws, are not endorsed by Purepoint Uranium Group Inc.
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eResearch: Bob Weir, CFA, Director of Research
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