Scotia Capital said Wednesday it is expanding its sell thesis and lowering its stock price target for Probe Mines Ltd. (TSX: V.PRB, Stock Forum).

Scotia analyst Mike Hocking has dropped his stock price target to 50 cents from $1.30. “We maintain our sector underperform rating,’’ he said in a research report.

The move comes after Probe released an initial indicated underground resource estimate for the Borden project in Ontario of 1.6 million ounces gold at a grade of 5.39 grams per tonne.

Traders responded by sending the shares down 11% to $2.45 Wednesday, leaving a market cap of $187.1 million, based on 76.4 million shares outstanding. The 52-week range is $3.95 and $1.47.

Hocking went on to explain that Probe shares were purchased because investors thought the company might define a high-grade underground deposit at its Borden project.

“It now appears that Probe has outlined a moderate-grade deposit at an orientation that is awkward for efficient mining,’’ he said.

“We recommend that clients sell their position in Probe Mines.’’

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Kaminak Gold's (TSX:V.KAM, Stock Forum) jumped 29% to 93 cents after the company announced the results of a NI 43-101-compliant preliminary economic assessment (PEA) for its wholly-owned Coffee Gold project, located 130 kilometres south of Dawson City, Yukon.

According to the news release, said results show that Coffee possesses a robust, high-margin, rapid payback 11-year open pit mining project using current gold prices.

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