more press at CanaccordDesert Sun Mining* (DSM : TSX : $3.23)
Net Change: 0.25, % Change: 8.39%, Volume: 3,579,667
Basking in the hot Desert Sun. Desert Sun is a junior gold
producer/explorer with a focus on Brazil. The company's key project is the
Jacobina property along the Bahia Gold Belt in Brazil. Past production at
Jacobina was 670,000 ounces at an average grade of 2.62 g/t between 1983
and 1998. Low gold prices, strong local currency, and poor operating
performance forced the mine to close. However, Desert Sun's efforts have
resulted in a restart of commercial production on July 1, 2005, and a
substantial increase in resources which currently total 5.3 million ounces.
There are some similarities between Desert Sun and Alamos Gold (AGI). But
while it may take Desert Sun a little longer to prove itself and its
operating performance to the market, Canaccord Capital Gold & Precious
Metals Analyst Steven Butler believes that the size of the resource base,
expected reserve conversion and production growth potential should drive
Desert Sun's valuation to a meaningfully higher level this year.