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Prospectors and Developers Association of Canada convention

March 3, 2008
Toronto is hosting this years Prospectors and Developers Association of Canada convention from Sunday through Wednesday. This year's convention is likely to create a huge buzz over small-cap mining stocks. This convention has been an annual event held since 1932 in March. The tradition of holding the conference in March stems from the past when miners used to come down from the mountains and hills after the snow started to thaw in March.

Eighteen-thousand registrants will be attending the conference in Toronto. Inside the conference the registrants will be able to attend lectures held by those in the industry as well as visit mining company stalls. The conference will provide an opportunity for small to mid-tier mining companies to shine. The companies manning booths are seeking to attract investors for their various projects from individuals as well as large-cap mining companies.

With gold prices hitting near $1000 per ounce and expected to continue rising this year's fair will prove to be very popular with investors. Speakers at the conference will give their opinions on the future price of gold and other metals. Investors will be able to learn what rising metals prices means for the industry and for their investment portfolio.

Gold prices rose 31 percent last year while shares of gold-mining companies fell 5 percent. This discrepency may indicate that there is plenty of upside potential for gold-mining companies. Indeed, this year has seen rising stock prices for gold-mining producers.

John Ing, president of Maison Placements Canada, says "I think 2008 will be the year where gold stocks will at long last catch fire." Ing is of the opinion that gold prices will reach $1,200 this year and then continue to rise until peaking at $2,500 per ounce when the cycle ends. He believes that this year will witness the consolidation of small and mid-size gold companies. He believes that Agnico-Eagle Mines Ltd ( AEM ) and Kinross Gold Corp. ( K ) are likely mid-size takeover targets.

There are numerous small-size gold producers and exploration companies which may be take-over targets this year by mid or large-size gold production companies. These may include companies such as Moto Goldmines Ltd ( MGL ), Breakwater Resources Ltd. ( BWR ), or Tournigon Gold Corp ( TVC.V ).

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