The Gold Report
Notable Quotes
"ICG has closed a CA$2.5M flow-through placement." (12/24/15) Integra Gold Corp. - Thibaut Lepouttre, Caesars Report More >
"The exploration upside at MAG's Juanicipio project is substantial." (12/23/15) MAG Silver Corp. - Gwen Preston, Resource Maven More >
"AKG's management continues to deliver on its development milestones." (12/22/15) Asanko Gold Inc. - Nana Sangmuah, Clarus Securities More >
"We are initiating coverage on KDX with a Buy rating." (12/21/15) Klondex Mines Ltd. - Don Blyth, Paradigm Capital More >
"VIT's Eagle is a shovel-ready, fully permitted, prefinanced gold project." (12/17/15) Victoria Gold Corp. - Tom Hayes, Edison Investment Research More >
DGC Among Canaccord's Top Picks
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STEVEN BUTLER, Canaccord Genuity
(11/30/2009)
"The Detour Lake project. . .is host to a sizeable total resource base of 22.5 Moz Au grading 1.17 g/t (including reserves of 8.8 Moz Au grading 1.15 g/t). The risk profile of the project has materially improved following the release of a positive prefeasibility on September 9, 2009, and a subsequent C$275 million equity financing to fund a portion of the US$883 million upfront capital costs. The project is expected to commence production in late 2012, pending a full feasibility study (expected Q1/10), a subsequent construction decision and a 26-month construction schedule. We expect the full feasibility study to improve the economics of the project (versus the prefeasibility study) based on a number of initiatives, including: 1) the potential to increase throughput by 15% and lower unit site costs by considering a coarser grind; 2) the potential for a 20% reserve addition based on incorporating approximately 80,000 meters of infill drilling focused largely on pit peripheral mineralization (along strike particularly to the west and at depth); 3) stockpiling/processing of approximately 100 million tons of low-grade material (0.4-0.6 g/t), containing approximately 1.6 Moz of gold, currently classified as waste; and 4) optimizing the tailings dam construction plan for capital and operating cost savings. Top Pick Thesis On an EV/oz total reserve basis DGC trades at approximately US$35/oz, compared to the junior developer weighted average of US$43/oz. DGC trades at a significant discount to the fully financed, more advanced-stage Osisko Mining (OSK:TSX) which trades at US$169/oz, with the differential highlighting potential upside on further de-risking the project and moving it closer to production." |
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