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BAY STREET-Strong gold price augurs well for some juniors

Sun Jun 14, 2009 8:00pm IST
 
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* Strong prospects seen for Lake Shore, Romarco and others

* Gold likely to rally on inflation fears, weak dollar (In U.S. dollars unless noted)

By Euan Rocha

TORONTO, June 14 (Reuters) - A strong gold price has revived interest in Canada's junior gold miners, and while many remain strapped for cash, a few are set to outpace the pack.

The juniors most likely to outperform are the ones with capable management, the ability to raise funds and that have high-potential projects close to production.

"It's good to have a pretty deep team that has experience on the operating side of things and experience in putting assets into production," said M Partners analyst Tara Hassan.

"But it also helps if they have experience with the capital markets and understand the intricacies of dealing with the market."

Hassan sees strong prospects for Toronto-based Lake Shore Gold Corp (LSG.TO: Quote, Profile, Research), which is developing a 100-percent-owned gold project near Timmins, Ontario.

The company recently started processing development ore from the site and expects to produce 30,000 ounces of gold this year, with overall production ramping up to about 200,000 ounces a year by 2011 as the company expands exploration activity and mill capacity.  Continued...

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