TGR: Can you share with us which juniors you saw as reasonable acquisition targets?
RS: Sure. One company we bought at the time and have added to is CGA Mining Ltd. (TSX:CGA) (ASX:CGX), which trades in Canada and in Australia. It was a near-term producer then, and has now poured its first gold. It looks as if CGA will declare commercial production in the third quarter of this year. In the first two years of operation the Masbate Gold Project in the Philippines will produce north of 200,000 ounces of gold a year and subsequently should get up to about 250,000 ounces with a mill expansion.
CGA has about a 2.3 million ounce reserve, but their global resource is probably in the range of around 10 million ounces with production cash cost of about $400 an ounce. I think what will happen with this company is that you get a rerating as they move into the producer status and I think it will fit the criteria of an acquisition by a major.
