TGR: Now let's go ahead and talk about some of the juniors that you are recommending for investors....

AS: It's Timmins Gold Corp. (TMM:TSX.V; TGD:NYSE.A), which is already in production. The reason I like the company is because there are some short-term catalysts, which should drive the stock higher. It is planning an expansion of the mill from 14,000 tons per day (tpd) to 18,000 tpd this year, which would take gold production up to about 130,000 oz; by the end of 2012 Timmins will again expand the mill to 32,000 tpd, which will take the production to 150,000 oz per year. One of the main reasons I like Timmins is because it is cash-flow positive, and it has production growth. Another good thing is that operational improvements have increased recoveries up to expected levels. Timmins was getting low recoveries, and investors were afraid that they would not reach the feasibility level. But recoveries have gone up to the 58–68% level, which was the expected recovery rate.

TGR: Does the company have visibility on its exploration prospects?

AS: It does, and it has another project that is close to Goldcorp's Peñasquito project. Management has done some geological mapping and some grab samples. There is some good exploration upside there.

TGR: Alka, Timmins shares have had higher relative strength next to some of its peers, and I wonder if the valuation is as compelling as some of these others?

AS: The reason current valuation is better than most of the other juniors is because it's in production and has positive cash flow, and that's one of the reasons why investors like it. They can also see the ramp up to gold production growth over the next few years.

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