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Detour Gold Corp. (OTCPK:DRGDF) has been one of the great mining success stories of the last year, and the accolades continue to come this week after the company raised the resource estimate at its self-titled Detour Lake property in Northern Ontario. The project now sports a resource of 13.2 million ounces of gold using a cut-off gold price of $700 an ounce.

Canaccord Adams analyst Steve Butler raised his target to C$32.25 a share from C$28.60 based on the continued potential of the resource and the valuation upside from drilling extensions to the deposit.

In a note, he wrote:

While our assumed mine start-up of [the first quarter of 2011] may prove to be aggressive, any slippage in in the schedule could potentially be more than offset by an improved grade profile in the early years of production.

At BMO Capital Markets, analyst Craig Miller shares Mr. Butler's bullish outlook, and also noted that Detour is a potential takeout candidate.

He noted:

The company has a large resource in a geopolitically stable, pro-mining jurisdiction capable of producing more than 800,000 ounces of gold annually at competitive operating costs.

However, there was a note of caution from Paradigm Capital analyst Don Blyth, who cut his net asset value estimate on Detour by 10% because of increased mining costs and a lower average head grade. He still wrote that the economics of the project remain "robust," and maintained a "speculative buy" rating and C$30.00-a-share target price.

Source: Detour Gold Continues to Impress