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Step-Out Drilling Results Offer Explorer Strong Basis for Resource Expansion at IBW Property

Source: Streetwise Reports   11/19/2021

Emerita Resources Corp. recently announced encouraging step-out drilling results from its Iberia Belt…

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This article was originally published by The Gold Report

Source: Streetwise Reports   11/19/2021

Emerita Resources Corp. recently announced encouraging step-out drilling results from its Iberia Belt West property in Spain. The firm is now activating three new diamond drilling rigs to accelerate exploration work. Clarus Securities Inc. commented in a research note that it is maintaining its “Speculative Buy” rating for the company and due to higher commodity market prices is raising its price target for the firm’s shares to CA$5.00.

In a November 16 research note, Clarus Securities Inc. Research Analyst Varun Arora, MBA commented that critical and base metals explorer and developer Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCMKTS; LLJ:FSE) is now engaged in contracting for three additional diamond drilling (DD) rigs for deployment at the company’s Iberia Belt West Property (IBW) within the next two weeks. Emerita Resources is currently operating two drill rigs at IBW so mobilizing these additional rigs will facilitate significant acceleration of the planned drill program.

The analyst advised that the three new DD rigs will initially be deployed at Infanta and that the company intends to move two rigs to its Romanera property in the coming weeks upon receipt of newly granted permits for IBW.

The Clarus Securities report listed that Romanera hosts an historic resource of about 34 Mt at around 7% Zn eq. The analyst added that historic drilling at Romanera previously intersected 20 m of 13.4% Zn eq and 24 m at 10.5% Zn eq from surface depths ranging from 300-350m. Clarus stated that in the coming months it expects similar wide, high-grade intercepts from Emerita’s drilling efforts at Romanera.

The analyst mentioned that on November 12, 2021, Emerita’s management provided additional depth extension step out drill results from three holes at Infanta which showed strong potential for high grades at deeper depths.

According to Clarus, the results were significant and included two holes from the North Block (#17, #23) and one from the South Block (#21). Recorded intercepts included 11.3 m at 10.2% Zn eq in Hole #17, 5.1 m at 20.7% Zn eq in Hole #23 and 5.5 m at 12.4% Zn eq in Hole #21.

Clarus reiterated from its prior research note that mineralization at the property is vertically faulted. As a result, mineralization at the South Block typically begins at surface downward to about 150 m. The North Block mineralization does not begin to around 50-100 m from surface and based upon a geological survey (TEM) is believed to extend downward as much as 400 m or deeper.

The analyst indicated that the historic resource estimates were based solely on the South Block site and were only tested to a depth of about 120 m. In addition, the North Block mineralization had not been explored by the property’s previous operators due to limits of prior exploration licenses.

The report stated that the deeper intercepts from the South Block generally returned lower grades as drilling approaches the fault between the North and South blocks.

Clarus noted that drilling at the North Block is now focused on the extent of the depth and eastward lateral continuity of mineralization. Now that the hunting season has ended in the area, the firm plans to commission a geophysical survey (TEM) and to resume testing the depth and lateral extent of the western strike as well.

Clarus securities commented that it is encouraged by the initial results from deeper drilling at Infanta and that it believes that the North Block mineralization will be proven to expand along strike and to depths beyond 400 m surpassing the roughly 100 m tested to date.

Clarus commented that it believes that “the big prize for EMO will be the awarding of the world-class, past-producing Aznalcollar mine that is the subject of an ongoing criminal legal dispute.” The research firm said it expects the Administrative Court in Spain will announce a decision regarding the Aznalcollar public tender that will be favorable to Emerita Resources and added that as Aznalcollar is a former producing mine, it can rapidly be advanced to underground production within five years and offers high estimated grades of around 12.6% Zn eq.

Clarus advised further that “it expects the two assets to produce at a combined rate of 550-600 Mlb Zn eq per year at the lowest quartile costs which would generate in excess of US$300 million annually in free cash flow.”

The analyst identified several near-term catalysts that could potentially positively effect Emerita. These include the resolution of the Aznalcollar case which Clarus believes will be resolved by year-end 2021. In addition, Clarus noted several other important upcoming events including additional drill results from its ongoing drill program at La Infanta, the anticipated receipt of environmental approval (AAU) for drilling at Romanera & El Cura in Q4/21, the start of the 10,000 m drill program at Romanera in Q4/21 and the company’s resource update for the Iberia Belt West property expected to be completed during H1/22.

Clarus securities reported that on November 16, 2021, it revised its price deck in U.S. dollars for long-term metals prices (US$). The firm said that its modeling programs will utilize a $1.30/lb price for zinc, a $23/oz price for silver and a $1,725/oz price for gold.

Clarus Securities Inc. stated that is maintaining its “Speculative Buy” rating on Emerita Resources Corp. but is raising its price target to CA$5.00 from CA$4.50. The research firm advised that the CA$0.50/share increase is attributed to revisions made to its price deck due to higher future commodity price estimates. Using its existing valuation model, the higher forecasted metals prices have effectively increased the firms NPV5% calculations by about 20% to around CA$1.48 billion, up from CA$1.23 billion.

Clarus added that if Emerita were to receive a favorable ruling in an ongoing court case and ends up being awarded the Aznalcollar project, then it would increase its target price to CA$6.90/share.

The company’s shares trade on the TSX Venture Exchange under the symbol “EMO” and last closed for trading at CA$2.99/share on Thursday, November 18, 2021.

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Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his 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. 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) This 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, a company mentioned in this article.

Important Disclosures from Clarus Securities Equity Research, Emerita, Nov. 16, 2021
Within the last 24 months, Clarus Securities Inc. has managed or co-managed a public offering of securities of this company.

Within the last 24 months, Clarus Securities Inc. has received compensation for investment banking services with respect to the securities of this company.

General Disclosure: The information and opinions in this report were prepared by Clarus Securities Inc. (“Clarus Securities”). Clarus Securities is a wholly-owned subsidiary of Clarus Securities Holdings Ltd. and is an affiliate of such. The reader should assume that Clarus Securities or its affiliate may have a conflict of interest and should not rely solely on this report in evaluating whether or not to buy or sell securities of issuers discussed herein.

The opinions, estimates and projections contained in this report are those of Clarus Securities as of the date of this report and are subject to change without notice. Clarus Securities endeavours to ensure that the contents have been compiled or derived from sources that we believe are reliable and contain information and opinions that are accurate and complete. However, Clarus Securities makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions contained herein and accepts no liability whatsoever for any loss arising from any use of, or reliance on, this report or its contents. Information may be available to Clarus Securities or its affiliate that is not reflected in this report. This report is not to be construed as an offer or solicitation to buy or sell any security. No part of this report may be reproduced or re-distributed without the written consent of Clarus Securities.

Conflicts of Interest: The research analyst and/or associates who prepared this report are compensated based upon (among other factors) the overall profitability of Clarus Securities and its affiliate, which includes the overall profitability of investment banking and related services. In the normal course of its business, Clarus Securities or its affiliate may provide financial advisory and/or investment banking services for the issuers mentioned in this report in return for remuneration and might seek to become engaged for such services from any of such issuers in this report within the next three months. Clarus Securities or its affiliate may buy from or sell to customers the securities of issuers mentioned in this report on a principal basis. Clarus Securities, its affiliate, and/or their respective officers, directors or employees may from time to time acquire, hold or sell securities discussed herein, or in related securities or in options, futures or other derivative instruments based thereon.

Analyst’s Certification: Each Clarus Securities research analyst whose name appears on the front page of this research report hereby certifies that (i) the recommendations and opinions expressed in the research report accurately reflect the research analyst’s personal views about the Company and securities that are the subject of this report and all other companies and securities mentioned in this report that are covered by such research analyst and (ii) no part of the research analyst’s compensation was, is, or will be directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.

( Companies Mentioned: EMO:TSX.V; EMOTF:OTCMKTS; LLJ:FSE,
)





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Energy & Critical Metals

EV Nickel starts trading on TSX Venture Exchange

  TORONTO – EV Nickel Inc.’s [EVNI-TSXV] initial public offering (IPO) prospectus dated November 19, 2021, has been filed with and accepted by the…

 

TORONTO – EV Nickel Inc.’s [EVNI-TSXV] initial public offering (IPO) prospectus dated November 19, 2021, has been filed with and accepted by the TSX Venture Exchange and has begun trading on the Exchange.

The closing of the IPO, scheduled for December 2, 2021, was expected to have gross proceeds of $5,440,292 for a total of 1,442,200 flow-through (FT) common shares at 86 cents per FT common share and of 5.6 million units at 75 cents per unit. The company has 30,355,667 common shares issued and outstanding

EV Nickel, classified as a Tier 2 issuer, is a Canadian nickel exploration company, focused on the Shaw Dome area, south of Timmins, Ontario. The Shaw Dome area is home to its Langmuir project, which includes W4, the basis of a 2010 historical estimate of 677,000 tonnes at 1% nickel for approximately 15 million pounds of Class 1 nickel.

EV Nickel’s objective is to grow and advance a nickel business, targeting the growing demand for Class 1 nickel from the electric vehicle battery sector. EV Nickel has almost 9,100 hectares to explore across the Shaw Dome area and has identified 30 km of additional strike length.

“We are excited to get out into the public markets and begin telling the world about our wonderful assets, on the Shaw Dome, just south of Timmins,” said Sean Samson, president and CEO. “The world needs more nickel and especially the type of high-grade, clean nickel that we plan to build our business around. Decarbonization is the challenge of a lifetime and we plan to source the material that will help the EV [electric vehicle] companies grow and help address that challenge.”





Author: Editor

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Base Metals

Vision Lithium to Buy The Cadillac Canadian Lithium Property

Canadian-based exploration company Vision Lithium agreed to acquire 100% interest in 215 contiguous mining claims in Quebec, Canada.  Combined with an…

Vision Lithium Property Portfolio
Cadillac lithium property located approximately 40 km west of Val-d’Or. Source: Vision Lithium

Canadian-based exploration company Vision Lithium agreed to acquire 100% interest in 215 contiguous mining claims in Quebec, Canada. 

Combined with an additional 105 stakes claimed by the company, the group of claims will be collectively referred to as The Cadillac lithium property.  

Details of the agreement include the vendor groups receiving an aggregate cash consideration of $102,427.92 from Vision Lithium, as well as ​​issue a total of 4,300,000 common shares of the company. The shares are not divided evenly, with 1.5 million each going to the CMH Group and Fancamp, the Leblanc-Lavoie Group will receive 1 million and 300,000 Shares will go to the Tremblay Group. The company will also pay each vendor group a 2% net smelter return royalty on the claims. 

President & CEO of Vision Lithium Yves Rougerie commented in a press release, “The Cadillac lithium project is an exciting addition to our growing portfolio of lithium properties. The Property is located 10 km south of the Trans-Canada highway and only metres from the secondary road, ensuring easy access for logistics, materials and qualified manpower.”

The claims acquired by Vision Lithium combined with the additional 105 claims staked, means the property holds a total of 320 claims covering 18,378 hectares. The property is easily accessible year-round in an area with well-maintained roads. This is especially helpful since Quebec can become covered in snow for multiple months of the year, and established infrastructure gives the company a head start.

There are also at least 4 pegmatite dikes which are spaced approximately 100 metres apart and traced for at least 300 metres along on the property. 

Rougerie continued “The property hosts a cluster of close-spaced parallel lithium-bearing dikes. Spodumene has been observed in the outcropping dikes and we believe there are likely more dikes in the cluster. The dikes have seen surprisingly little historical exploration with only a handful of samples and no drilling to date.” 

High Potential for Additional Lithium Discoveries

Lithium crystals have been observed on all four dikes of the property, with even a few large crystals visible. 

The property is located approximately 10 km south of Cadillac, a historic mining town, and about halfway between the major mining centres of Rouyn-Noranda and Val-d’Or in Quebec. 

“We believe the potential for additional lithium discoveries within the main cluster area is excellent and the larger property also has tremendous upside potential for discovery. The entire area acquired and staked is very large at almost 200 square kilometres. We plan to aggressively explore the Property over the winter by drilling the main cluster of dikes and to plan and complete field work next summer over the large tract of land,” Rougerie said. 

There are a number of closing conditions and post-closing obligations for the company until the transaction is officially completed. This includes the execution of certain deeds and instruments of conveyance, and the approval of joining the TSX Venture Exchange. Completion of the transaction is expected to be finished in the coming days. 

Vision Lithium focuses on exploring and developing mineral assets such as lithium and copper in different parts of Canada. Other than the claims they have just received in the recent transaction, the company has operations in Manitoba, and multiple properties in New Brunswick and Quebec. The first drill program at the company’s Dome Lemieux copper property in Quebec has commenced. Vision has also recently completed the Red-Brook copper and zinc drill program in New Brunswick. 

Vision Lithium is focused on developing their Sirmac lithium project in Quebec which is a hard rock source of lithium. Lithium can either come from hard rock sources or brines, and about 50% of each make up the world’s lithium compound production. Both sources can produce battery-grade lithium, but the extraction process is very different. The company plans on using existing methods to extract lithium for the battery market. This is a key area for the company as demand for battery materials is soaring in the middle of a global energy transition. 

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

The post Vision Lithium to Buy The Cadillac Canadian Lithium Property appeared first on MiningFeeds.





Author: Matthew Evanoff

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Precious Metals

Gold Springs Discovers New Gold System – Shares Jump 20%

Gold Springs [GRC-TSX; GRCAF-OTCQB] reported assay results from hole J-21-015 with an average…

Gold Springs Resource Corp. [GRC-TSX; GRCAF-OTCQB] reported assay results from hole J-21-015 with an average of 1.0 g/t gold equivalent over more than 163 metres located 180 metres south of the discovery hole J-21-006 at the 100%-owned Gold Springs property located on the border of Nevada and Utah.

The results confirm the existence of a new gold-mineralizing system called intrusive-related gold system (IRGS) on a new target that the company has named Tremor. This new gold system is situated along the northern extension of the Jumbo trend of the large Gold Springs project of 8,000 hectares.

J-21-015 highlights include 1.0 g/t gold equivalent over 163.1 metres: 1.42 g/t gold equivalent over 33.5 metres within the vein, which includes 3.26 g/t gold equivalent over 10.7 metres within the vein; and 0.94 g/t gold equivalent over 123.5 metres within the intrusive and contact zone.

Randall Moore, executive vice-president of exploration, stated: “We have been anxiously awaiting these results, which now confirm what we believe to be a major new discovery. The existence of an IRGS at Gold Springs opens a potentially large area to develop a new gold resource. Hole J-21-015 extended both the high-grade vein system and the gold mineralization associated with the intrusive first seen in hole J-21-006. We would also like to highlight that both holes ended in gold mineralization. We are now awaiting assays from another 15 holes at Tremor that are currently in the laboratory for testing. Drilling has extended this northern vein for over 200 metres and the Tremor intrusive zone for 600 metres along strike as seen in the drill cuttings. The thickest intercept within the intrusive thus far has been 280 metres.”

The company is waiting to receive assays from 24 holes on two targets; 15 from Tremor and nine from White Point, in the coming weeks.

Gold Springs Resource is confident of the presence of an intrusive-related gold system within the Tremor target situated along the north extension of the Jumbo trend in Utah where a strong CSAMT (controlled source audio magnetotelluric) high resistivity anomaly extends for 1,200 metres.

The company completed 18 holes at Tremor designed to test the extent of the intrusive-hosted gold system. These holes demonstrate the intrusive extends for 600 metres and is open to the north, south and at depth. In addition, the vein system in hole J-21-006 has been traced for 200 metres. For details on hole J-21-006, which returned 6.87 g/t gold equivalent over 24.4 metres, included grades of 30.9 g/t gold equivalent over 4.6 metres.

The drill has moved to Charlie Ross where eight additional holes are planned to follow up that new discovery.

Author: Staff Writer

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