Source: Streetwise Reports 12/07/2017
Cormark Securities provided an update on this company’s gold project in central Wyoming.
In a Nov. 15 research note, Tyron Breytenbach, an analyst with Cormark Securities Inc., reported that GFG Resources Inc. (GFG:TSX.V; GFGSF:OTCQB) has identified, via drilling, new areas of mineralization at its Rattlesnake Hills project.
GFG expanded the North Stock target “by 100 meters (100m) to the west, drilling 0.95 grams per ton gold over 22.9m outside of the previous mineralization footprint,” indicated Breytenbach.
Drilling of the Middle Ground target, the brownfields area between North Stock and Antelope Basin, “continues to return economic mineralization,” he added. By connecting those two targets, if possible, GFG could extend the overall mineralized strike length to 1.1 kilometers.
As for the overall size of the resource at Rattlesnake Hills, Cormark estimated it to be an open-pittable 2 million ounces based on results from the 80,000m of historical drilling and from this year’s 43-hole, 15,000m drill program.
As for near-term upcoming catalysts, GFG will announce the remaining outstanding drill results. “We expect a steady flow of news into the final months of 2017,” Breytenbach wrote. Subsequently, the mining firm is expected to release a maiden resource estimate for Rattlesnake Hills in H1/18, “which will set a baseline valuation for this early-stage but prospective explorer,” added the analyst.
Because “valuations across the sector are down,” Breytenbach explained, Cormark lowered its enterprise value per ounce estimate on Rattlesnake Hills to $35/ounce from $40/ounce and, consequently, its target price on GFG to CA$1.70/share from CA$2.10/share.
GFG Resources’ shares are currently trading at around $0.50. Cormark has a Buy recommendation on the corporation.
Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.
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: GFG Resources. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
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 …read more
Source:: The Gold Report