I see OSK could be on a target for a take out...see below. Makes sense after I just did a little DD on it. I listened to the recent conference call and what really peaked my interest, besides the resource of over 10 million ozs. gold, was the reference to possible Quebec Government financing. That would be a real winning situation given all the crap that goes on with bank/investment housing financing. That is a super bonus situation!

Junior golds gaining momentum

Posted: January 28, 2009, 11:30 AM by Peter Koven

Mining, gold, junior mining

Excerpts.....

Gold is the one commodity that has performed in recent months, so it is no surprise that the producers are doing well. But according to analysts at Canaccord Adams, there is finally some momentum building in the long-dormant juniors as well.

The senior and intermediate producers are booming because of a combination of high prices, falling costs and favourable currency moves. Canaccord analysts Wendell Zerb, Eric Zaunscherb and Nicholas Campbell estimated that the are trading at a price-to-NAV multiple of 1.5 times, up from 1.13 times last October.

That is trickling down into junior producers and developers as well, the analysts wrote. They calculated that the average market value for in-situ ounces of gold is US$29.20 an ounce, up 22% in three months.

"As the multiples on larger-cap precious metal producers expand, investors tend to switch some of their investments from the producers that have outperformed to smaller-cap gold producers where multiple expansion is slower to take hold. This trend toward smaller caps, and in theory better value, eventually reaches into the explorecos," they wrote in a note to clients.

Given the recent wave of senior gold financings, they also predicted that another round of consolidation could take hold in the junior space. Kinross Gold Corp., for example, just raised US$360-million and is eager to make acquisitions. The analysts suggested that junior targets could include Andina Minerals Inc., Detour Gold Corp., Exeter Resources Corp., Osisko Mining Corp., and Rainy River Resources Ltd.