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Message: PRB in today's "The Gold Report" interview
AS: I would like to talk about another junior name, Probe Mines Ltd. (PRB:TSX.V). The reason I like this company is because of its flagship Borden Lake project with a 3.4 Moz gold discovery in Ontario, Canada, a mining-friendly jurisdiction. At the end of April, IAMGOLD Corp. (IMG:TSX; IAG:NYSE) acquired Trelawney Mining and Exploration Inc. (TRR:TSX.V), which is also in Canada. I think that IAMGOLD was driven by the fact that Canada has much lower political risk than some other countries where it has mines. Probe has slightly lower grades but still a big resource number of about 3.4 Moz at 1.02 grams per ton. It also has some higher-grade zones, and it proved to have enough volume with the potential of lowering the capex, and that will make the project less sensitive to the gold price. TGR: With a $73M market cap, Probe has the highest relative strength of all the juniors that I've looked at over the past month. It's up 11% over the past four weeks. All I see is red ink/negative returns everyplace else. What was the issue here? AS: Basically, Probe is a story that everybody likes. It's in Ontario, and the recent acquisition of Trelawney has helped the stock as well. People do look at it, and they can see the upside potential. But again, I would say that people should be aware of the risks that juniors have sometimes. http://www.theaureport.com/pub/na/13463
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