TMR: What gold success stories are out there?

DS: We like Probe Mines Limited (PRB:TSX.V). Its Borden gold discovery is 2 million ounces (2 Moz) at 5 grams per ton (5 g/t) amenable to bulk underground mining techniques one kilometer off a highway and 90 minutes from Timmins, Ontario. In fact, at its 3 g/t cutoff, the high-grade zone hosts 1.8 Moz at a 5.9 g/t average grade. We believe additional drilling along the strike to the east will further extend the deposit and underline what is already one of the best undeveloped gold assets in Canada.

The project also features a 2.3 Moz, 1 g/t pit-constrained low-grade zone that makes sense for open-pit mining, either in a higher gold price environment or as funded out of cash flow from the underground mine. The company is now closing a $26M flow-through financing, which will enable it to complete a maiden preliminary economic assessment at Borden in the fourth quarter, close an acquisition to tie up the regional land package, and facilitate aggressive exploration drilling through 2015. We believe Probe is a story that is seriously misunderstood. It is a real opportunity for investors looking at higher-grade, earlier-stage names.

TMR: How is Probe's share price performing?

DS: After being one of the darlings of the TSX Venture Exchange in 2013, Probe had a leg down this year. There were a few reasons for that. Agnico-Eagle Mines Ltd. (AEM:TSX; AEM:NYSE) had been viewed as a natural buyer for Probe. When Agnico made a bid for Osisko Mining, the market surmised that Agnico may not want to buy Probe in the short term. Also, some analysts regard Probe's recent resource update as ho-hum, a view I certainly do not agree with. Probe has a stellar underground deposit and maintains the open pit as a great option in a higher gold price environment.

http://www.theaureport.com/pub/na/david-sadowski-are-you-ready-for-upward-pressure-on-uranium-prices