buy recommendations for gry

Perhaps this is the basis for the current rush on GRY Stock. Taken from http://www.proactiveinvestors.com.au/companies/news/13633/gryphon-minerals-has-buy-recommendation-from-eagle-research-with-a-a220-target-price-13633.html

Gryphon Minerals has BUY recommendation from Eagle Research with a A$2.20 target price
Report by: Eagle Research
Target price: A$2.20
Current price: A$1.63
Main research report points:

With the discovery of a stacked lode system at Samovogo complementing the existing stacked lode system at Nogbele, Gyrphon Minerals (ASX: GRY) appears to be heading towards a plus 3 million gold ounce resource at Banfora in DQ 2011 (as at Sept) after achieving an expected 2 million gold ounce or so resource at Banfora in JQ 2011 (as at March).
Progress on the scoping study scheduled for mid-2011 currently envisages a 1.5km x 1km pit to a depth of 170m to 180m at Nogbele treating 2.5mtpa to 3mtpa at above 2 grams per tonne (g/t), with possibly a heap-leach for the 0.7g/t halo, resulting in gold production of above 150,000 million gold ounce from 2013, following construction in 2012.

At this stage, Samovogo and the other discoveries appear likely to be satellite pits trucking ore to a central plant at Nogbele, unless the 20km away Samovogo becomes significantly large enough to have its own plant (as its mineralisation appears to be spread along a 5km to 12km long structure).

The acquisition of Shield appears to be paving the way for Gyrphon?s second operation, located at Tijirit in Mauritania.

While there are a number of reasonable grade intersections (inferring possibly a 100,000 million gold ounce operation) that are similar to the operating Tasiast gold mine, the upside potential is whether Tijirit is a faulted offset of Tasiast (30km NW of Tijirit).

Tasiast is being claimed as one of the biggest gold discoveries at possibly above 20 million gold ounce with expected production of above 1 million gold ounces annually at a cash cost of around $400 an ounce and hence above $1 billion per year operating cashflow.

Tijirit does have similar rocks to Tasiast, and also has a central anticline. It was drilling of the anticline at Tasiast that exposed a 100m thick at 2.5g/t to 3.0g/t hidden Greenschist unit, and the main driver behind Kinross? $7 billion takeover of Redback (for Tasiast).
Gryphon established two associates in 2010 in which it holds 15% to 16% each, being Renaissance Minerals containing its Australian assets and Tawana which was a cash shell and now holds Gryphon?s Liberian assets (Tawana could result in containing Gryphon?s ?base and other metals prospects? in West Africa).

Upside Potential:
The consideration of a higher grade core and treating an 0.7g/t lower grade halo at Nogbele, infers that the grade could be closer to 2.5g/t or even 3g/t.
So Banfora could be 3 million tonne per year at 3g/t & 92% recovery = 266,000 gold ounces annually, plus heap-leach treatment of the low grade.

Add possibly a worst case of 100,000 gold ounces annually from Tijirit and Gryphon?s market cap can easily be justified at $1 billion or around $3.30 a share, or double the current share price. And that is without the exploration upside amongst its prospects and associates.