News

Target Price Raised on Explorer After ‘Promising First Drill Results’ From Spain Asset

August 17, 2021 (Investorideas.com Newswire) A Research Capital Corp. report noted “there remains upside as [Emerita Resources] continues drilling on the IBW project and the Aznalcollar dispute approaches a conclusion.”

image

In an Aug. 13 research note, analyst Adam Schatzker reported that Research Capital Corp. raised its target price on Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCMKTS; LLJ:FSE) to CA$2.65 per share from CA$2.40 (the current price is about CA$2.08) for two reasons. Emerita released positive initial drill results from IBW’s La Infanta deposit, thereby increasing Research Capital’s confidence in its potential size. Also, additional news from the court case regarding the Aznalcollar project tender was positive.

Schatzker addressed both developments. Regarding the drill results, the initial two holes drilled in La Infanta hit mineralization, he said. One of them, IN004, which Schatzker described as “very good,” returned 7.45 meters (7.45m) of 90.1 grams per tonne (90.1 g/t) silver, 0.49 g/t gold, 1.67% copper, 6.01% lead, and 11.49% zinc from 62.55m downhole. These grades are comparable to those of the historic resource.

Hole IN001, which Emerita drilled nearer to surface and 100m from IN004, was less impressive, likely due to the mineralization there having been leached over time, according to Emerita. IN001 showed 11.5 g/t silver, 0.07% copper, 1.68% lead, and 3.4% zinc from 24.3m downhole in addition to 2.8m of 12.95 g/t silver, 0.02% copper, 3.79% lead, and 7.5% zinc from 32.3m downhole.

Overall, however, Schatzker noted, the results indicate the La Infanta deposit could be as big as Emerita estimates it to be, about 1.2 kilometers long in strike and at least 300m deep. Accordingly, Research Capital increased the deposit’s projected size in its model.

“While two drill holes do not make a deposit (especially when one intersects a shallow, leached portion of the deposit), we believe the confirmation of the historic grades helps improve our confidence level of the historic drilling and potential for the deposit to increase in size,” Schatzker wrote. “La Infanta itself could become a material, economic deposit for Emerita.”

As for Aznalcollar, given the recent news that seems to indicate an eventual favorable resolution for Emerita, Research Capital, in its model, lowered the discount it ascribes to the asset to 20% from 30%, Schatzker noted. Should Emerita be awarded the project tender, Research Capital will remove any discount, which would increase the implied target price for the exploration company to CA$3 per share.

In the meantime, Schatzker pointed, Emerita continues to offer additional upside even though its stock has been doing well. Research Capital maintains its Speculative Buy rating on it.

Disclosures:

1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Emerita Resources Corp. Click here for important disclosures about sponsor fees.

3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Emerita Resources Corp., a company mentioned in this article.

More Info:

Investorideas.com Newswire

This news is published on the Investorideas.com Newswire – a global digital news source for investors and business leaders

Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.

More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ and tickertagstocknews.com

Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp

Gold Mining Stocks - Gold Mining Stocks Directory, Gold Stocks News, Research and Resources

Gold-MiningStocks.com – investing ideas in gold and mining stocks

Like Gold Stocks? View our Gold / Mining Stocks Directory

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

Leave a reply

Your email address will not be published. Required fields are marked *

More in:News

Next Article:

0 %