Gold Summary for Dec. 2, 2013

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David Palmer's Probe Mines Ltd. (PRB) dropped 23 cents to $2.24 on 286,000 shares, coming off a year high of $2.47, which it hit Friday. The company has spent the past year expanding its Borden gold property in Ontario, where it is also working on an update to a four-million-ounce gold resource. The company has over $30-million in working capital. Probe is a favourite of newsletter writer John Kaiser, who says the stock is particularly well suited to the current market environment, "because it offers a path toward profitable production at existing gold prices." The company, however, has yet to complete a preliminary economic assessment. It put one on hold this year, so it could first update Borden's resource. Probe hired Michael Petrina as chief operating officer this summer to get to work on both the update and the PEA. Even without the PEA, Mr. Kaiser gives the stock a price target of between $4 and $5 within the next 12 months.

Probe had also been hoping to receive up to $100-million this year or next for one of its other Ontario properties, Black Creek. The last Black Creek assays returned unexciting in 2010, but Mr. Palmer has continued to tout the property's fine location. It sits, or rather sat, in the way of Cliffs Natural Resources Ltd.'s proposed billion-dollar access road to the Ring of Fire. Cliffs suspended all work on its road and its Ring of Fire property earlier this month, blaming stalled talks on the provincial government.