Probe Gold Inc. (PROBF)

[investor15]

10 Strategies for Success in a Flat Commodity Price Market: John Kaiser

Source: JT Long of The Mining Report (10/22/13)

John Kaiser It could be 2017 before the commodity supercycle is evident again, but stormy weather in the mining space has a silver lining: It is encouraging miners to develop new, innovative approaches to their business. In this interview for the first edition of The Mining Report, John Kaiser of Kaiser Research Online outlines 10 strategies that are setting certain companies apart. Discover the companies that are redefining their business, as well as miners with the goods in the ground to continue come rain or shine.

Section of article:

TMR: So look for a company with a higher-grade deposit. What's another strategy?

JK: I like the strategy of a discovery within a discovery that could completely eclipse the original low-grade resource. Looking for higher grade zones within the system is a way a gold junior can revitalize an existing deposit that doesn't work at current low metal prices. One of the companies that I'm very enthusiastic about that's doing just that is Probe Mines Limited (PRB:TSX.V). It made a grassroots discovery several years ago, which was one of these 4 or 5 Moz deposits of 1 g/t. Unfortunately, that deposit is not very valuable at $1,200–1,300/oz gold. However, the company continued to explore this system and found a higher grade zone. We're talking about 5 to 10 g/t. The zone so far is very continuous.

Probe has also just finished some infill drilling and one step-out hole on the high-grade zone. We will get a resource estimate in early 2014. I'm estimating we will see ~1–1.5 Moz of about 5 g/t gold.

This finding is a surprise that has the company and many investors wondering, are we dealing with something a lot bigger? That's the kind of blue sky that you want exposure to in this sort of market that we have now.

Continued below:
http://www.theaureport.com/pub/na/10-strategies-for-success-in-a-flat-commodity-price-market-john-kaiser