Probe Gold Inc. (PROBF)

[investor15]

Expert Comments on Probe Mines Ltd:

Kwong-Mun Achong Low, Jennings Capital (5/29/13) "Probe Mines Ltd. announced the closing of its bought deal private placement for net proceeds of $14.4M of flow-through units. Agnico-Eagle Mines Ltd. was the back-end investor of the charitable flow-through and now owns 9.97% of the non-diluted shares of the company. Interest in Probe's Borden gold project comes as no surprise to us, given its safe jurisdiction, exploration blue-sky potential and out-forecasted sizeable production potential; we estimate Probe to have an enviable treasury of $42M at the end of May, assuming a burn rate of $1.2M per month. Borden remains a robust project."

Tyron Breytenbach, Cormark Securities (5/29/13) "We view Probe Mines Ltd.'s Borden as one of the more buildable projects still owned by a junior in a secure Canadian jurisdiction; based on its current burn rate, Probe is financed to complete exploration and engineering to beyond 2015. . .we continue to believe that the company is one of the more compelling juniors. The well-located, grade-flexible open-pit deposit backstops our valuation, while the deep discovery offers continued exploration upside and a potential grade uptick. Probe is well insulated from the current turbulent junior equity market and is well positioned for a rebound in investor sentiment."

Ali Khan, Stonecap Securities (5/29/13) "With the financing successfully completed in difficult markets, Probe Mines Limited continues to outshine peers in terms of asset quality in the form of the Borden gold project. The company is well financed to continue further derisking the project and gets a vote of confidence by an intermediate producer (Agnico-Eagle Mines Ltd.) in the form of a strategic investment; we reiterate our Outperform rating and $3.50 price target."

The Gold Report Interview with Ryan Walker (5/3/13) "I like to look for projects that can get big and that have legs, scalability, development options and by-product credits, if possible. A good example and the one I am most excited about right now is Probe Mines Limited. The company's Borden Gold deposit in Ontario has had success pretty quickly. It was discovered in late 2010 and it is already up to 4–6 Moz gold, depending on the cutoff grade you apply. Some say these big, low-grade deposits are out of favor right now—that's quite true—but Probe has a couple of characteristics that help it stand out. The deposit has a higher-grade core that runs right down the middle. The bulk of the deposit is running at around 1 g/t gold. The higher-grade core is up around 1.6 g/t. That gives Probe a bit of flexibility to go after the higher-grade core first and then stockpile the lower-grade material for processing toward the end of the mine life.

The really exciting thing is that late last year, drilling to extend the deposit toward the southeast returned the type of hole I can't say I've seen in some time—51m of 10.3 g/t. And, that was NOT influenced by, say, a 1m section of 800 g/t—it wasn't a case of grade smearing. Probe more recently did some follow-up drilling and the first two holes—and mind you this is a 500m stepout from that initial hole—boom! Drill results came back just shy of 13m at 7.4 g/t and another at 10.2m of 12.5 g/t. Those are fantastic results! . .the deposit has 4–6 Moz, so you know it's a big plumbing system to be able to pile up that much gold. The bulk-tonnage target and high-grade core have shown good continuity. We're waiting on results from additional ice-based holes sunk this winter further southeast and they could be the game changers. It looks as if Probe has tapped into a high-grade feeder system toward the southeast. That changes the complexion of the story from bulk-tonnage and low-grade to high-grade, and, importantly, so far over some nice wide intervals. All that, and the company still has a large little-explored land package. Probe is worth a look. With $30M on the balance sheet, the company should at least be funded through the end of this year. No jeopardy of running dry on funds." More >

Kwong-Mun Achong Low, Jennings Capital (4/26/13) "Probe Mines Limited announced updated metallurgical results and a recovery curve for its Borden gold project in Ontario. . .recoveries appear to slightly exceed our expectations. We assume an average recovery of 85% for an average head grade of ~1 g/t, whereas the recovery curve outlined by the company infers approximately 87% at the same head grade. . .at higher gold grades, the recovery response approaches 90%. . .we believe other areas of this largely continuous orebody should see similar results. . .we reiterate our Buy rating and 12-month target of $4/share."

http://www.theaureport.com/pub/co/3961