Northern Exposure for Newmont

In a recent piece, I laid out No. 2 gold digger Newmont Mining's (NYSE: NEM) harsh reserve replacement reality. In it, I noted that the company has put forward a plan to broaden its portfolio of near-producing assets. It is certainly wasting precious little time.

Yesterday, Newmont announced a friendly takeover bid for Miramar Mining (AMEX: MNG). Miramar is sitting on one of this continent's largest-known undeveloped gold resources. The Hope Bay Project, located in Canada's Nunavut territory, is estimated to contain more than 10 million ounces of gold, and that's only based on drilling to date. Given Newmont's deeper pockets, not to mention expertise, there may be more ore in store.

The friendly aspect of the bid, in case you're unfamiliar, means that Miramar's management welcomes the takeover. That's a less stressful situation than the one Yamana Gold (NYSE: AUY) faced in its ultimately successful Meridian Gold (NYSE: MDG) musclefest.

This is another in a string of assertive moves since Newmont gave its old CEO the heave-ho. I don't necessarily see this action as presaging some sort of manic gold grab, but I certainly expect Newmont, for one, to keep plucking projects for its pipeline.