Accessible high-grade deposits in safe jurisdictions: a “golden” formula

Christos Doulis, an analyst with Western Canadian-based PI Financial, is giving top billing to Premier Gold Mines Limited. (PG-TSX) adding it to his coverage list as a “speculative buy.”

He’s also handing it a 12-month price target of $3.75 a share. He writes:

An exploration and development outfit focused on North America, Premier boasts multiple gold projects in proven mining districts.

In addition to accessibility, the company’s criteria for potential projects include high-grade deposits and safe jurisdictions.

Premier’s primary project, TransCanada, is located near Geraldton in northern Ontario in a district that’s produced more than four million ounces of gold.

Premier’s Red Lake project is also located in northern Ontario, while the company’s Cove project is situated in Nevada’s Eureka-Battle Mountain trend — a prolific gold-producing region.

Although we wouldn’t classify Premier’s Hardrock project, located near Geraldton, as high-grade, both Cove and Red Lake are.

And given its potential production of 200,000 ounces a year, Hardrock represents a possible merger and acquisition target for mid-tier gold-mining companies.

For its part, the company has ample money to advance its projects in a timely manner, given cash on hand of $60 million.

Moreover, in Ewan Downie, Premier boasts a CEO who’s experienced in the business of building and then selling companies.

Not only did he found Wolfden Resources, but he served as both its president and CEO from 1995 to 2007 when he sold it to Zinifex, the Australian mining giant, for $363 million in cash.

Headquartered in Thunder Bay, Ont., Premier is a Canadian mining company focused on high-grade gold projects in both Nevada and northern Ontario.

 

 

Investor’s Digest of Canada, MPL Communications Inc.
133 Richmond St. W., Toronto, On, M5H 3M8, 1-800-804-8846

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