Dear CIGAs,

The junior gold share valuations in the marketplace make many companies worth much more in parts then in their total marketplace valuations.

Maybe the majors have just overplayed their waiting hand.

Jim

From Reuters:
- Says that Yamana is "on the hunt" for single-property acquisitions given how cheap exploration/development stage gold companies have become due to the credit crisis.
- Echoes our January 5th mining comment "Cheaper For Majors To Buy Than Build"
- Indicates that YRI may wish to acquire more robust projects in an effort to replace some of the higher-cost, more marginal projects it has in its current growth pipeline.
- YRI would likely be looking for a higher-IRR project to take the place of its Pilar, La Pepa, and/or Ernesto projects.

INTERVIEW-Yamana seeking single-property acquisitions-CEO
Tue Jan 13, 2009 3:48pm GMT
(In U.S. dollars)

TORONTO, Jan 13 (Reuters) - Yamana Gold (YRI.TO) is on the hunt for single-property acquisitions or cast-off assets from other companies, the mid-cap Canadian gold producer’s chief executive said on Tuesday.

In an interview, Peter Marrone said the company will use both cash and stock to pursue assets that have become cheap due to a financial crisis that has cut off smaller miners from credit.

The sector has benefited from gold prices that, while off last year’s peaks, have stayed relatively strong. Marrone said it is "not unrealistic" to see gold hitting $1,200 an ounce this year. The metal <XAU=> was at $826 on Tuesday.

($1=$1.23 Canadian) (Reporting by Cameron French; editing by Peter Galloway)

Coop