What has PDN interested is that here is a small company (20m cap) sitting on the same minerology as as Areva's high grade uranium project just north (320mlb @.1%)in a country that has mined uranium continually for 30 years and infrastructure in place.
NGM drills July before the Aug/Sept hot and wet season.Drill targets based on historical date and recent surface sampling,,confirming potentially very large high grade deposits.
The only concern is the Presidents attempt to extend his tenure into a 3rd term and run for re-election come 22Dec '09. There is a lot of mounting pressure for him to reverse course. Regardless, who ever attains leadership will undoubtedly continue to support and cosset the uranium mining industry.
Areva, the 800lb gorilla of the uranium industry,is the only fully vertically intergrated uranium company wordwide and 80% french government owned, is also involved in Guinea and Mauritannia (both military regimes) via a 14% stake in Forte Energy.
Comparing the two of Areva's investments is telling. Its investment in Niger is huge and on going past 30 years and the infrastructure is in place. Neither of which can be said about Guinea or Mauritannia.
To my mind the risks are negated by the potential reward on offer here.
Comparing other African junior uranium plays regards sovereign risk, in ground potential, market cap etc... and you begin to see how undervalued NGM is at present.
Chartwise, support confirmed at key 13c level and BOP large upswing shortly.
NGM Price at posting:
13.5¢ Sentiment: Buy Disclosure: Held
