Michael Fowler: The new strategy for adding value to junior/midtier gold
TGR: Can you give us another name that offers good value per-ounce-in-the-ground?
MF: Brigus Gold Corp. (BRD:NYSE.MKT; BRD:TSX) is in a turnaround situation. I would not be surprised to see Brigus and St Andrews combine in some way. They are right next door to each other and both are turning themselves around. A combination would be a good idea.
TGR: Brigus just quadrupled the resource on its Grey Fox property.
MF: Correct, and Grey Fox is right next door to St Andrews, which has been finding similar types of resources on its side of the border.
TGR: Having a resource that goes under a border can complicate things.
MF: Both companies have to mine it somehow. To mine it separately is a bit more difficult. If they mine it together, they can use economies of scale to greater advantage.