Tom Szabo: The Peerless Way to Precious Metal Profits

http://www.theaureport.com/pub/na/15660?utm_source=delivra&utm_medium=email&utm_campaign=Gold+final+10-14-13

Probe Mines Limited (PRB:TSX.V) in Ontario previously focused on chromite in the "Ring of Fire" area before switching its focus. I guess you could say that the company saw the writing on the wall, unlike some other unnamed parties.

Probe's Borden Lake gold project is an example of potentially peerless. It is encountering higher grades and very distinct structures as it steps out drilling to the southeast. There's an opportunity to look at this project as several different phases. It already has a several-million-ounce resource potentially open pittable that's decent grade and now also has the potential for underground bulk mining that could make initial development easier because the project is next to a lake.

Projects near lakes have inherent risks. There's a bigger focus on local stakeholders having a say, as witnessed by recent legislative developments in Québec. And of course across Canada over the last several decades, the First Nations have had increased input throughout the exploration and mine development process. It's important to have a flexible strategy or options when a project is near something sensitive. However, the Borden Lake project is still in a stage where we don't need to fully consider that.

I wouldn't be buying Probe Mines because I think it's going to be a great mine. I would buy it for the optionality and potential. It can still reach the next stage without having to solve issues that are important to local stakeholders. At the current stage, there's just so much prospective upside from the discovery itself. As an explorer, I consider it a potentially peerless company.