Excerpt from a March 4, 2011 interview with Charles Oliver of Sprott Asset Management

Charles Oliver: Out of Africa, into Americas
Source: Brian Sylvester of The Gold Report 03/04/2011

TGR: Are you still finding value in companies with projects in North and South America?

CO: When I look at the basket of opportunities in North America, some companies are expensive and some are dirt cheap. I'm finding lots of opportunities to add in the North American space.

TGR: What are some juniors with projects in North America that you believe can be had at good value?

CO: There are companies like San Gold Corporation (TSX.V:SGR); we're big shareholders of San Gold. We're also big shareholders of Kirkland Lake Gold Inc. (TSX:KGI). The company is producing 100,000 ounces (100 Koz.), has the potential to triple that production and is trading at dirt-cheap valuations relative to most of the other companies out there.

TGR: And Kirkland Lake's conducting more underground drilling so it could further increase its resource, too.

CO: Yes, I visited the property last summer and looked at some of the new underground drill platforms. I remember asking about how much drilling the company would be doing from this one particular platform. Kirkland said, "Well, we've got this new area that's never been drilled before. It's right beside our existing underground mine. We're going to drill it for two or three years."

Just this past month, the company announced some of the first drill results from that campaign. It's very early stages but it looks like Kirkland Lake will be adding more resources to an already very significant resource, which would increase its ability to expand production.

TGR: What are its cash costs there?

CO: The cash costs are a little high, about $700/oz. right now. The company's trying to bring it down to a more reasonable level. The precise cash costs for the Macassa mine are $709 in Q111 and $809 in Q211.

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