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Hy Lake Gold Inc (CNSX: HYL) - Investment Highlights
- Strategically located in the historic Red Lake gold camp: Hy Lake has assembled a 12 km long package of contiguous mining properties that are strategically located over the Pipestone Bay-St. Paul Bay deformation zone, a major, NW-SE trending regional structure which hosts a number of former producing gold mines. HYLK can be considered a "pure" Red Lake gold play.
- Sound Management: Aggressive, focused property acquisition and exploration program (e.g. Golden Tree, Pipestone Bay and South Jamie properties) based on application of expert knowledge of regional scale gold mineralization concepts.
- Strong working relationship with Goldcorp: This arises from the joint option with Goldcorp. We believe the relationship between Hy Lake and Goldcorp is developing into one similar to FNX/Vale Inco and FNI/Xstrata in the Sudbury camp
- Current Fair Value: On our "in-situ" mineral value, and through peer comparison, we believe Hy Lake is currently valued close to its fair market value of $0.43 per share.
- Upside Potential: We expect Hy Lake to continue with its focused drilling program in 2010, to confirm and expand a sizable historical pre-NI 43-101 reserve. We, therefore rate Hy Lake a SPECULATIVE BUY, with a 12-month target of $0.81 per share. With good drilling results, Hy Lake’s value could grow significantly beyond our projected value of $0.81 per share.
