Canaccord Genuity's Joe Mazumdar -T.CRJ asSpeculated Buy https://www.investorideas.com/news/2015/mining/08062.asp
TGR: Which gold companies operating in Canada have you rated Speculative Buys?
JM: Pretium, Claude Resources Inc. (CRJ:TSX) and Rubicon Minerals Corp. (RBY:NYSE.MKT; RMX:TSX).
TGR: What do you like about Claude?
JM: Over the past 12 months, Claude Resources has easily outperformed the Market Vectors Junior Gold Miners ETF benchmark (up 134% versus down 55%). The keys to its success are underpinned by positive cash flow from operations from a high-grade resource, Santoy Gap, within a stable geopolitical jurisdiction, Saskatchewan, operated by a management team with the technical expertise to take advantage of the options that underground mining presents. Consistently high metallurgical recoveries of 95-96% are also a positive. Its cost exposure to the Canadian dollar is about 95%, so any further weakness is considered favorable.
Claude's ability to convert its non-reserve (NRM) resource base, specifically at Santoy Gap, is a critical risk component of its future success, as currently its 2P reserve base accounts for approximately four years of production. We have modeled a Life-of-Mine plan based on a mineable resource of 824 Koz grading ~6.8 grams/tonne gold (~6.8 g/t Au) (70% of global resource of 1,167 Koz grading ~7.6 g/t Au) after adjusting for conversion risk, mining dilution and recovery of its NRM resource base. Claude Resources is planning on a significant drill program--60,000 to 65,000 meters (65,000m)--at Seabee and Santoy Gap to upgrade the resource base. The Seabee property in north-central Saskatchewan comprises a significant land holding of 19,950 ha as of late June 2015. In our opinion, given its balance sheet strength, Claude can fund a sustainable growth profile organically.