SOURCE: Equity Spotlight

October 06, 2011 07:00 ET

Gold Rebounds, Good for Exploration Companies

NOTE TO EDITORS: The Following Is an Investment Opinion Being Issued by the EQUITY SPOTLIGHT.

NEW YORK, NY--(Marketwire - Oct 6, 2011) - The Wall Street Journal published an article yesterday ( on the rise of gold prices and the overall "upbeat sentiment" towards the commodities market. This could spill over to gold exploration companies.

Gold has seen an unprecedented rise in the past year and exploration companies have seen their values rise with it. Some of the largest producers like Gold Corp (NYSE: GG) and Yamana Gold (NYSE: AUY) have benefitted the most from the price increases but smaller exploration outfits like Brigus Gold (NYSE Amex: BRD) and Lone Star Gold (OTCBB: LSTG) have as well. The rise in value allows these companies to further exploration efforts and increase production.

Lone Star has announced they have isolated additional surface anomalies in their Mexico-based La Candelaria gold-silver project's southwest zone, indicating an additional exploration area to pursue. These findings could help Lone Star move toward their goal of becoming a mid-tier producer in the short term.

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