Gold mining stocks -- particularly juniors -- have performed well this year. The Market Vectors Junior Gold Miners ETF (GDXJ) is up more than 16 percent year to date - outperforming the SPDR Gold Trust which is up slightly more than 10 percent. The Paragon Report examines the outlook for companies in the Gold industry and provides equity research on Lone Star Gold Inc. (OTCBB: LSTG) and Great Basin Gold Ltd. (NYSE Amex: GBG) (TSX: GBG). Access to the full company reports can be found at:

www.paragonreport.com/LSTG www.paragonreport.com/GBG

Gold mining stocks and ETFs had been lagging bullion prices in recent years. However some analysts are looking for the shares to tighten the performance gap in 2012. Scott Wright of Resource Investor argues that 2011 global gold-mine production finally returned to pre-bull levels. "In fact, with 2011's volume expected to come in at around 88m ounces, we'll see a new all-time production high," Wright argues.

Investing in gold mining stocks is not without risk, however. As pointed out on BullionVault.com, higher costs can weigh on margins and cut into profits. "Businesses which have found gold in smaller countries have been forced to build roads, hospitals, schools and other social infrastructure, as well as repair the damage they do," BullionVault.com reports.

The Paragon Report provide investors with an excellent first step in their due diligence by providing daily trading ideas, and consolidating the public information available on them. For more investment research on the gold industry register with us free at www.paragonreport.com and get exclusive access to our numerous stock reports and industry newsletters.

Lone Star Gold, Inc., an exploration stage company, engages in the acquisition, exploration, and development of gold and other precious metal properties in Mexico and the United States. Earlier this week Lone Star Gold signed a Joint Venture Agreement with the specially formed Mexican subsidiary company, AMIKO KAY, S de RL de CV, and Miguel Jaramillo to process 1.2 million tons of mine tailings, at the San Antonio del Potrero mine tailings project.

Great Basin Gold Ltd. engages in the acquisition, exploration, and development of precious metal deposits. Shares of the company took a hit earlier this week after the company reported preliminary fourth-quarter results that showed an 18% increase in the cost to recover precious metals.

The Paragon Report has not been compensated by any of the above-mentioned publicly traded companies. Paragon Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at http://www.paragonreport.com/disclaimer

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