Source: Brian Sylvester of The Gold Report 09/22/2010 Drew Clark is a relatively new analyst with Byron Capital Markets, but that doesn't mean he doesn't espouse his fair share of wisdom. In this exclusive interview with The Gold Report, Drew provides an in-depth look at gold companies in all categories that he believes are respectable investment opportunities. TGR: Any other producers you like? DC: We like Avion Gold Corp. (TSX.V:AVR; OTCQX:AVGCF) as well. Avion holds interests in numerous projects in Mali, principally the Segala and Tabakoto Projects, in addition to the Houndé concessions located in Burkina Faso. It is currently producing between 75,000 and 85,000 ounces in Mali, and Avion is poised to grow their output rate to 200,000 ounces by 2012, according to management. Production aside, I see the real source of Avion's growth being the exploration upside through both the drill bit and potentially more strategic acquisitions similar to those they've conducted in the region to date. Avion is already conducting a $10 million, 60,000-meter drill program in 2010 on its land package. I believe it will continue to yield strong drill results. Recently they tied up a property that is just south of Semafo Inc.'s (TSX:SMF) Mana Mine, called Houndé, in Burkina Faso. The package is hosted in the same greenstone belt as Mana, which trends directly onto the property. They are conducting a program for 5,000 meters this year along with a geophysical program. With the resource estimate by year-end, we feel the market is attributing no value to potential resource at Houndé. TGR: Given its proximity to the Semafo property, is Avion a potential takeover target? DC: I would see Avion as a potential takeover target based on their continued resource expansion. They've had some struggles related to ramping up production, but from a resource standpoint, it's a terrific story. Semafo has a huge chunk of that trend, so, one would assume they've got enough to work with in the area. http://www.theaureport.com/pub/na/7434
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