"BC: We do go after companies that are actually drilling and exploring, too, and that's based on what I see as a good risk-to-reward. These are higher risk, but it's worth the risk if I see the potential for a major discovery, something that a large mining company will buy. It's all price-sensitive, of course, and dependent on the market cap.

For instance, we put San Gold Corporation (TSX-V:SGR) in the portfolio about a year and a half ago. We bought a small miner—it's getting larger—for the exploration potential. Over the past year or so, they've shown that their geologic concepts work and they're finding more high-grade veins in the district that they control. San Gold's certainly not a prospect generator; it's an exploration company with a small mine. The exploration has been going well, they pulled 2.5 meters of more than 1,000 grams gold recently. That was a good hole."

http://www.theaureport.com/pub/na/3451