Detour Gold Corp DRGDF

Canaccord comments on G & DGC

[cheechwuzup]

Detour Gold* (DGC : TSX : $20.01)
Net Change: 0.71, % Change: 3.68%, Volume: 215,476
Goldcorp* (G : TSX : $42.36)
Net Change: -0.29, % Change: -0.68%, Volume: 4,068,550
"Fishes live in the sea, as men do - a land; the great ones eat up the
little ones." - William Shakespeare. What do you do when you have US$1.3
billion in cash and no debt? According to Goldcorp, you don't go on a
multi-billion-dollar acquisition spree; you start your own collection of
small development players. The world's second-largest gold company by
market capitalization says it wants to focus on acquiring smaller players
that would add to its pipeline of future production rather than bulk up its
current roster of mine, as its last $10 billion acquisition of Glamis Gold
left the company struggling to incorporate new assets. According to the
Vancouver Sun, with major gold discoveries becoming increasingly rare, and
rising gold prices pushing valuations of established producers higher,
development-stage companies have become the new target of operators who'd
rather not pay a premium for mines that have already been built. The
company expects to produce 2.6 million ounces this year, hoping to raise
that amount by about 50% over the next five years. Yesterday, Goldcorp held
its Investor Day; watch for analyst comments today. Would Goldcorp be
interested in the likes of Detour Gold? Detour is focused on advancing the
Detour Lake project in the Abitibi Greenstone Belt of north-eastern
Ontario. The project hosts a total gold resource of 7.86 Moz grading 1.60
g/t and could potentially come into production in 2011 pending a positive
feasibility study and subsequent construction decision, and a 24-month
construction schedule.