UPDATE: Canaccord Genuity Initiates Brigus Gold at Buy on Valuation, Growth Potential

Canaccord Genuity initiated coverage on Brigus Gold

with a Buy rating and a $2.10 price target. Canaccord Genuity noted, "On a NAV basis, the shares trade at a multiple of only 0.43x our 5%/diluted NAV @ spot gold versus the junior producer average of 0.71x. Expansion of Black Fox underground, and development of Grey Fox justify likely mill expansion from 2,200 tpd to 3,500 tpd. The shares offer superior leverage to the gold price; approximately 30% leverage for a 10% change in the gold price." Brigus Gold closed at $0.93 on Tuesday.