Tag: EnviroGold Global Ltd.
Last month, EnviroGold Global announced new precious metal recoveries from studies that used samples from its Hellyer tailings project in Australia. Results show substantial improvements from preliminary tests completed last year. Concurrently, NVRO announced an equity financing that has now closed. We have updated our valuation and therefore increase our target price to C$0.95 after incorporating these improved recoveries and the latest financing into our model.
Yesterday, Red Cloud hosted the second of its three-day 2022 Very Pre-PDAC Mining Showcase, which featured 32 presenting companies and a fireside chat with Ross Beaty, Chairman of Equinox Gold Corp. Over 1,750 participants have registered for the event. With this note, we want to provide a quick recap of the highlights from the conference for those who were unable to attend the live event (see our Day One recap here). If you would like to attend Day Three of Red Cloud’s 2022 Very Pre-PDAC Conference, register here. Replays are available on the Red Cloud website.
EnviroGold Global (NVRO) executed a binding definitive agreement with Hellyer Gold Mines Pty Ltd. (HGM) to reprocessing existing tailings at the Hellyer Au operation in Tasmania, Australia. Like the MOU before it, the agreement contemplates a multi-stage tailings reprocessing project whereby NVRO would apply its proprietary mineral processing technology to extract remaining metals in the Hellyer tailings. We see the signing of a final agreement as a major de-risking milestone for EnviroGold, which has increased our confidence in the company’s ability to become a near-term producer.
We are initiating coverage on EnviroGold Global Ltd. (CSE:NVRO, OTCQB:RGOZF) with a BUY (S) rating and C$0.70 target price, representing 112% upside from the current share price. EnviroGold is looking to create value by reprocessing mine tailings. It plans to leverage its metallurgical expertise and deploy modular and scalable processing plants to several tailings sites throughout the globe to extract valuable metals left behind by prior operators. We believe there is strong potential for NVRO’s share price to materially re-rate over the coming year as it grows and de-risks its tailings portfolio and sets itself up for initial production.
EnviroGold (NVRO) announced the results from a ground penetrating radar (GPR) survey conducted at its Buchans tailings project in Newfoundland. The survey indicated widespread tailings deposition with an average thickness of ~1.5m that extends beyond the central claims, forming a “Western Arc” in the river delta, where mine tailings were historically dumped. With the GPR results confirming prior drilling and a larger tailings footprint, the next logical step for NVRO is to proceed with a sampling program to delineate a tailings resource at Buchans ahead of initiation production in 2023.
EnviroGold announced it has executed an MOU with Hellyer Gold Mines Pty Ltd. (HGM) to reprocess existing tailings at the Hellyer Au mine in Tasmania, Australia. The agreement contemplates a multi-stage tailings reprocessing project, whereby EnviroGold would deploy its proprietary mineral processing technology to various tailings deposits located at the mine site. In our view, the agreement is likely to be mutually beneficial for both parties, and with significant resources already delineated and preliminary metallurgical testing already completed, we believe EnviroGold is favourably positioned to begin generating cash flow from Hellyer as early as next year.