If you’re bullish on gold and looking for a way to play the surge in the precious metal, mining stocks may be a good bet. These companies can provide some diversification from the volatility of a pure play on gold prices, and many times these stocks also mine other metals including copper and iron. That allows you to profit form an industrial recovery if and when it happens.

To arm yourself with the best gold investing information, check out the price targets and projected upside for these top 7 blue chip mining stocks:

A multinational mining and resources group based in London and Melbourne, Rio Tinto (NYSE: RTP) is a company of diversification. Founded in 1873 with the purchase of a mine on the Rio Tinto River in Spain, the company mines mostly copper, though also – among other metals – gold , silver and iron. The company has operations on six continents but is mainly concentrated in Australia and Canada, and owns gross assets valued at $81 billion through fully and partly owned subsidiaries. RTP recorded nearly 18 millions of ounces of gold reserves as of 2009. It’s up +8.44% year-to-date compared to the Dow’s +4% and the S&P’s +2.75%. At $58 and change per share, it’s trading with just a +7% ceiling until it hits the median analyst value from Thomson/First Call.

With mines in Australia, U.S., Tanzania, Peru, Papa New Guinea and Canada, Barrick Gold Corporation (NYSE: ABX) is the largest pure gold mining operation in the world – and increasing. ABX produced 7.7 million ounces of gold at a cash cost of $443 per ounce. As of 2008, its gold mineral reserves were 138.5 million ounces. In 2006, Barrick acquired Placer Dome, which moved Barrick to its position as the largest gold producer, ahead of Newmont Mining Corporation (NYSE: NEM). Barrick recently made news by declaring that gold could “easily” outperform record highs above $1,500 an ounce in the next year. Barrick’s output forecast of 7.6 to 8 million ounces for this year could be higher, as its $500 million Cortez Hills mine, which went into production the first quarter of this year, would be vast. For now, ABX is up +17.57% year-to-date against the Dow and S&P, and trending upward. With a median price target of $55.90, according to Thomson/First Call, there could be a +21% upside above current stock valuations.

Freeport-McMoRan Copper and Gold (NYSE: FCX) is the world’s lowest-cost copper producer and one of the world’s largest producers of gold. It mines and mills ores containing copper, gold and silver for the world market with mines scattered in North America, South America, Europe, Asia and Africa. Since 1973, the company has operated the world’s largest gold mine, located in Indonesia’s Papua province. This year it’s expected to output 1.8 million ounces of gold. And as for its stock, after a rough five months, FCX is again on the up. It’s at +7.9% year-to-date against the Dow’s +4% and the S&P’s +2.75%. Net income for second-quarter 2010 was $649 million (or $1.40 per share) compared with $588 million (or $1.38 per share) for second-quarter 2009. Of Thomson/First Call’s 14 analyst price target rankings, it’s median price is at $91. That’s just about +4.5% above its price valuation – not much
upside there.

Goldcorp (NYSE: GG) touts itself as one of the world’s lowest-cost and fastest-growing multi-million ounce gold producers. Based in Canada, Goldcorp has 16 operations and development projects in six countries across North and South America. Last year it anticipated increase in gold production of more than 50% over the next five years. The mine is expected to produce 500,000 ounces of gold, 28 million ounces of silver, 450 million pounds of zinc, and 200 million pounds of lead per year.  Goldcorp produced 2.42 million troy ounces of gold in 2009 at a total cash cost of $295 per ounce of gold. Adjusted net earnings increased to $588.2 million compared to $397 million in 2008. Earlier this month it announced it would buy Andean Resources Ltd for $3.4 billion. After a rocky early start to the year, it’s up +10.88% year-to-date against the Dow’s +4% and the S&P’s +2.75%. With a median price target of $53.40, GG stock has about a +22% upside until it reaches Wall Street’s outlook, according to Thomson/First Call.

Based in Denver, Newmont Mining Corporation (NYSE: NEM) is the largest U.S. gold producer, with its largest active mines in Nevada, Indonesia, Australia, New Zealand, Ghana and Peru (at a mine considered one of the largest and most profitable in the world). Newmont is the largest gold mining company in Australia. In the U.S., there is obviously still gold in ‘them thar hills,’ as production in the U.S. accounts for 70% of the company’s equity ounces. Other metals that the company mines include copper and silver. Although Barrick Gold (NYSE: ABX) and Goldcorp (NYSE: GG) have outperformed Newmont over the last five years, it looks like Newmont may be in for a nice upward run. With 17.4 equity ounces of gold reserves. It’s up +34% year-to-date
against the Dow and S&P and climbing. And according to Thomson/First Call, the stock has about +9% until reaching target valuations, so there is a small upside remaining for investors.

Formed in 2004 by the merger of AngloGold and the Ashanti Goldfields Corporation, AngloGold Ashanti Limited (NYSE: AU) boasts 21 operations on four continents, with heavy production in Africa, South America and North America. In 2008, AngloGold produced 4.98 million ounces of gold from its operations, estimated to be 7% of the global gold production. But the year after, the company’s gold output dropped to 4.6 million ounces, along with recently experiencing its share of bad press. It has was publically shamed by the Human Rights Watch for its handling of its exploration operation – as the company admitted to paying extortion money in exchange for access to gold mines in the Democratic Republic of Congo. But that hasn’t affected the bottom line. AU is up +12.5% year-to-date against the Dow and S&P. Revenue is up from $3.1 million in 2007 to nearly $4 million last year. Unfortunately, AU is about in line with its median
price target, according to Thomson/First Call, so shares may not have any more upside for investors.

Canadian-based gold mining company Kinross Gold Corporation (NYSE: KGC) isn’t faring too well these days, but that could all change. With mines and projects in the U.S., Brazil, Chile, Ecuador, Russia and Canada, the company is on the move. Last month, Kinross announced a potential merger with Red Back Mining with Kinross paying $7.1 billion. And with nearly 2.5 million ounces of gold output in 2009, production is running strong. KGC has gained 21.95% during the past month and is currently trading above its 20-day, 50-day and 200-day moving averages. There is bullish pressure on KGC. According to Thomson/First Call, the median price target for KGC is $22 – that’s about +18% higher than the stock’s current valuation of $18.67. Though the stock is at +1.5% year-to-date – in line with the Dow and S&P – it could be on the move up.