re: Ann: Doray to Present at Mines & Money Lo... TGR: Which...

re: Ann: Doray to Present at Mines & Money Lo... TGR: Which Australian gold company stands out on grade?

LS: Doray Minerals Ltd. (DRM:ASX) is our preferred gold exposure on the Australian Securities Exchange (ASX). It has the Andy Well gold project, a new gold mine in a historical province near Meekatharra in Western Australia. Production began in August. This is a small-scale underground mine and is mining ore grades of 15 grams per ton (15 g/t).

We expect FY/14 production of 70,000–80,000 oz (70–80 Koz) at cash costs of A$500/oz and an all-in costs of A$730/oz. We've given it a Buy rating with a price target of $0.90/share.

TGR: Will production increase beyond 70–80 Koz?

LS: Doray's processing plant can probably handle increased production once it increases its resources and reserves. Now that the mine is built, and it is ramping up, the focus will move back to exploration. Doray has some pretty attractive targets to add mine life. Once that's done, there's a chance to increase its production profile as well.

TGR: Will Doray have enough cash for the exploration necessary to increase its resources?

LS: We think its funding should be fine.

http://www.mining.com/web/levi-spry-highlights-quality-australian-projects-that-will-find-funding/