As a result of the reallocation of resources, Red Cloud is discontinuing coverage on the following companies: Arianne Phosphate Inc. (TSXV:DAN) – now unrated (was BUY, C$1.50/sh target, Timothy Lee), Brixton Metals Corp. (TSXV:BBB) – now unrated (was BUY, C$0.50/sh target, Taylor Combaluzier), Fiore Gold Ltd. (TSXV:F) – now unrated (was BUY, C$2.50/sh target, Timothy Lee), Gold79 Mines Ltd. (TSXV:AUU) – now unrated (was BUY (S), Taylor Combaluzier), Great Panther Mining Ltd. (TSX:GPR) – now unrated (was BUY, C$1.40/sh target, Timothy Lee). Our previous estimates should no longer be relied upon.
Tag: Gold79 Mines Ltd.
Gold79 released the final batch of assays from its recently completed 16-hole maiden drill program at its Gold Chain project in Arizona. The final batch of assays comprised 12 holes (852m) focused on the northern 2km of the 10km North Oatman trend which includes the historical Roadside mine and the Banner mine. In our view, 2021 drilling, including the previous results from Tyro (read more), returned good grades that warrant follow-up drilling (2022E) and additional exploration work. We believe Gold79 has proven that it can execute a high-impact and efficient drill program. We also continue to believe Gold79 offers a compelling buying opportunity for investors at its current valuation.
Gold79 announced results for the first four drill holes (223m) from its recently completed 16-hole drill program at its Gold Chain project in western Arizona. The four holes tested broadly mineralized surface exposures to depths of 20-40m at the Tyro target. In our view, these initial drill results at Tyro are very encouraging and validate the company’s strategy to realign its focus on Gold Chain. We are particularly impressed given the tight turn around between drill mobilization (mid-Sept) and the receipt of assays. We note that Tyro is covered with patented claims, for which Gold79 recently entered into an option agreement (read more), which offer a strategic advantage for permitting and potential development as opposed to other claim types. We believe Gold79 has proven that it can execute a high-impact and efficient drill program. Should it continue to deliver positive results, we believe the stock could be due for a potential re-rating. We also continue to be of the opinion that Gold79 offers a compelling buying opportunity for investors at its current valuation.
Yesterday, Red Cloud hosted the first day of its three-day 2021 Oktoberfest Fall Mining Showcase, which featured 26 presenting companies including our keynote speaker Dr. Thomas Brady, Managing Director of Capitalight Research Inc., and had over 1,000 participants registered in advance of 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. If you would like to attend Day Two and Three of Red Cloud’s Oktoberfest Fall Mining Showcase, register here. Replays are available on the Red Cloud website.
Q3 Producer Preview & Commodity Price Update – Lowering Gold Price Forecasts While Most Commodities Increased
Q3 operating and financial results are to be announced over the next few weeks. While gold is out of favour, prices have been trading within a narrow window that have allowed companies to continue to turn profits, despite an uncertain outlook. Late summer was hard on most commodities as precious and industrial metals alike fell on a slowdown in global economic growth due to surging fuel prices, Chinese power restrictions, labour shortages, disrupted global supply chains and a stronger USD. Metal prices came under further pressure as major property developer Evergrande missed further bond payments, impacting iron ore and copper prices. With this update, we provide new commodity price and FX forecasts, updated coverage estimates, and a fresh set of top picks.