Globe says Aurizon, others catch BMO's attention

2009-06-03 04:54 PT - In the News

See In the News (C-ARZ) Aurizon Mines Ltd

The Globe and Mail reports in its Wednesday edition that it is being called a "renaissance" in Canadian gold mining. The Globe's Andrew Willis, writing in Streetwise, says that after a decade of declining production, domestic gold mines are expected to incease bullion output over the next five years. BMO Nesbitt Burns just published a report that forecasts Canada will produce 7.2 million ounces of gold a year by 2015, up 132 per cent from current levels. New gold supply will come from a combination of new mines (Malartic in Quebec and Detour Lake in Ontario), first production from projects still being developed (Meadowbank in Nunavut) and expansion of properties already producing, such as Northern Ontario's Red Lake project. BMO Nesbitt Burns is now tracking the fortunes of Aurizon Mines, San Gold, Lake Shore Gold and Rubicon Minerals. Its favourites are San Gold and Lake Shore, based on "strong growth trajectories, potential for low-cost production and valuation discount relative to peers." Takeovers have always been a part of mining and are expected to be commonplace in coming months, as senior companies use their premium valuations to add new reserves through acquisitions.