Is the take over of Jaguar Mining a sign of the start of a scramble for gold in the ground?

It is no secret that majors have to replace their depleting resources by exploration themselves or by buying up smaller gold mining and exploration companies.

The recent bid by a Chinese company for Jaguar Mining may set off a scramble for advanced stage exploration companies and medium sized producers.

IMO it will only need one or two takeovers to start an avalanche of acquisitions of smaller companies by majors.

Companies such as TRR GCU OSK look very likely candidates amongst others. It must be said however that judging from action in the shares of those companies at the moment, there is no sign of this starting to happen, but it bears watching.

With the world situation as it is and major gold companies making good profits from the gold price at $1500 + , one must ask –What are they waiting for??

This takeover of Jaguar Mining by the Chinese may be a wake up call.

US and Canadian based majors may have some of the best plums in their own backyard plucked right in front of their noses by other outside majors including by those based in China. But in China’s case it would seem they would probably look for resources in Africa or Latin America.

TRR look well placed right now but may not be quite ripe for a takeover until we get a better idea of how big the TRR gold deposits are.

All this just my opinion!