some more positive news

out last night in London. these are new discoveries people.

HansonWesthouse said Australian-based uranium focused company Forte Energy’s (ASX, AIM: FTE) Mauritanian uranium projects had a significant upside following Friday’s report on essay results, which caused the broker to up its target price for the company to 11.5 pence and retain a ‘buy’ recommendation for the stock.

The report from the Bir En Nar and Bir Moghrein projects in Mauritania included results from trenching and grab samples at five uranium anomalies, including 9,300 parts per million (ppm) triuranium octoxide from a trench and two grab samples with 4,850 ppm and 4,500 ppm U308. The sampling identified four priority targets which the company intends to test with a 2,000 metre reverse circulation (RC) drilling programme at Bir Moghrein, slated for completion by the end of the current year.

These four targets are in addition to the Bir En Nar project in Mauritania, where results form the current drilling programme are expected within two week with a maiden resource anticipated by early 2010. The company currently has a technical agreement with its largest shareholder Areva and could possibly reach a joint venture (JV) agreement should its defined resource reach 60Mlbs U3O2 by June 2010.

HansonWesthouse said the exploration results pointed to a significant uranium province in Mauritania, while noting that the company was fully funded until next year. Other bull points for Forte included its 11.5 Mlbs (million pounds) U3O2 JORC compliant resource at the Firawa project in Guinea.

Despite cutting its valuation metric from US$5.9 to US$4 per lb of U3O2 and stating that the company’s market capitalisation was at a premium to current resource with much of the short term value of Bir En Nar already included, HansonWesthouse raised its target price for the shares to 11.5 pence from 9.5 pence in anticipation from the imminent steady stream of drill results.

Matrix Corporate Capital also issued a note on Forte Energy immediately following Friday’s announcement, saying it expected the Firawa resource to be increased in the short term and viewing it as a 20 million lbs project with upside next year, setting a short term price target of 12.7 pence per share based on a $5/lb valuation.
Shares in Forte Energy last traded at 9.75 pence.