New update at www.goldsilverdata.com Probe Mines has a large open pit gold project in Ontario, Canada – an ideal location. The Borden Lake project (80,000 acres) is 5 million ounces (1 gpt) and could get bigger. They own 100% of this deposit and 50-70% of surrounding claims. If the grade was a little better, they would be a buy-out candidate. However, they could still get taken out. This property has excellent exploration potential for a very long life mine.
The problem with this stock is the timeline risk. The PEA is due in 2014 and then they will need a feasibility study, permitting, and financing, before they can begin construction. Production is not likely before 2019. That is a long wait for this investment to reach full valuation. As for the economics of this project, we won't know until the PEA comes out, but I would guess that all-in costs will be around $1200 per oz, and the capex around $400 million.
I like Borden Lake, but would feel much better if mine development was further along. They have $38 million in cash to financing additional drilling, the PEA, PFS, and permitting. Also, they have a 5% royalty on an Agnico-Eagle project due for production in 2014. And they have a 45% JV with Lake Shore Gold. Long term this could be a 10 bagger from this valuation ($176 million market cap fully diluted). But it is a long wait for Borden Lake to get built, and it could get bought out as the resource grows in size and they get closer to production.