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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: Veteran98 who wrote (194074)	11/8/2010 11:23:15 AM
From: Veteran98	Read Replies (1) \| Respond to of 313889

VEN ripping..... up a 1.00 now..TD put a 16.00 target on it !!!! November 8, 2010 Action Notes Equity Research Company Profile Ventana Gold Corp. is a Vancouver-based gold exploration company that holds a portfolio of properties in northeastern Colombia. Ventana Gold Corp. (VEN-T) C$9.37 Positive Scoping Study Sets Baseline for Expansion Event Ventana Gold released the much anticipated results of the Scoping Study and resource estimate for its wholly-owned La Bodega gold project in northern Colombia this morning. The study contemplated a major near surface bulk underground mine with what we would characterize as very low capital and operating costs. We believe this sets a baseline upon which the company can expand and improve the project with additional work in the future. Impact - POSITIVE We believe this milestone may mark the emergence of the company from a long period of underperformance typical of companies during the feasibility stage of their life cycle. As such, we are upgrading the stock to Speculative BUY (from Hold) and increasing our Target Price to $16/share (from $14). Details The Scoping Study contemplated a major near surface bulk underground mine. Highlights of the report included: - Initial inferred resource of 3.5mm oz Au, 19mm oz Ag, 85mm lbs Cu - Start-up capital costs of US$297mm (incremental $169mm over LOM) - 14 year mine life with planned production at 7,500 tpd - Average 301,000 oz/yr Au at net cash costs of US$322/oz over first 6 years - Reported pre-tax NAV5% of US$807mm with IRR of 34% at metal prices of US$1000/oz Au, US$17/oz Ag, and US$3.00/lb Cu. It is difficult to gauge expectations as the company has a limited following. However, the figures presented above are broadly in line with our expectations with the project being more compact but also more robust than we anticipated. The company noted the following major areas in which it could expand and improve the project: (1) further defining the size of the La Baja, Las Mercedes, and Aserradero zones and the gap area between the La Bodega and La Mascota zones where limited drilling has been completed and incorporating these into future mine plans; (2) expanding the La Bodega and La Mascota zones to depth – most of the current resource resides above 250m depth whereas ore grades and thicknesses have been intersected to beyond Gold & Precious Minerals Recommendation: SPEC. BUY? Prior: HOLD Risk: SPECULATIVE 12-Month Target Price: C$16.00? Prior: C$14.00 12-Month Total Return: 70.8% Market Data (C$)