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

To: Canuck Dave who wrote (201931)	8/3/2011 9:58:13 AM
From: Veteran98	Respond to of 313062

BAT... Canaccord has a $10.00 target........ METALS AND MINING Batero Gold Corp. \| Nicholas Campbell, 1.604.643.7027 BAT : TSX-V : C$2.75 \| C$120.7M \| Speculative Buy , Target C$10.00 • Sell-off on promising regional exploration results a buying opportunity; maintain SPECULATIVE BUY and C$10.00 target Investment recommendation We maintain our SPECULATIVE BUY recommendation on the shares of Batero Gold with a target price of C$10.00 per share. Investment highlights • Epithermal discovery: Drill hole 34 (Manzanillo), intersected near surface epithermal style mineralization grading 2.85 g/t gold over 31.3 metres, the highest grade intercept to date and the first hole to intersect epithermal style mineralization. • Three porphyry discoveries: Porphyry mineralization was intersected at the Manzanillo, La Lenguita and Matecana zones. While these intercepts were generally lower grade (0.24-0.81 g/t gold), they demonstrate the potential to substantially expand the tonnage at Batero-Quinchia and connect the La Cumbre Zone with the Dos Quebrados Zone. • La Cumbre extended: Drilling extended La Cumbre to the north, north-north east and to the east. • Sell-off a buying opportunity: Shares of BAT are off 25% on the back of the drill results. The selling pressure was likely driven by the lower grade of the results, the lack of recent news and the overall weak junior mining sentiment. We believe this is a buying opportunity. We are expecting an initial resource (before year end) of more than 7 million ounces of gold. Valuation We see potential for the Batero-Quinchia project to eventually develop into a 10+ million ounce gold resource, which we value on a US$65/oz in situ basis to generate a NAVPS of C$9.97 per adjusted, diluted share.