Nevada Still Offers Excellent Potential for Gold Assets

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"Nevada is still highly prospective for new mining investments."

Adam Graf, director of equity research for Dahlman Rose, suggests, that despite the dominance of Barrick Gold and Newmont Mining operations, "Nevada is still highly prospective for new mining investments."

Although declining ore grades and depleting assets continue to result in lower production and high costs at a number of major mines, Graft advised that Barrick and Newmont still "must fill their processing facilities to maintain costs and efficiencies of scale."

In the meantime, Graf suggested, "junior miners stand to gain from existing processing facilities and well developed infrastructure, as well as the desire of major gold producers to replace existing assets."

'New discoveries and extensions to existing operations demonstrate the continued prospectively of Nevada," Graf said. "We believe the state's unique geology and ore deposits offer the opportunity to discover significant new deposits."

Dahlman Rose, which is sponsoring an Emerging Miners CEO Conference this week in New York City, is initiating coverage on five exploration and development companies, all of which Graf said have significant assets in Nevada.

"We believe that early-stage assets represent potentially high-return opportunities to investors in a rising gold price environment with access to capital markets," he added.

"We have chosen what we believe are among the best vehicles in this space, and view these equities as providing both value and attractive leverage to future gold (and silver) price changes," Graf said.

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