Watch as Leo Hathaway, Senior VP, Lumina Gold, talks about drilling at Cangrejos, results from the 15…
Tag: Lumina Gold Corp.
Lumina Gold (LUM) reported drilling results at its 100%-owned Cangrejos project in Ecuador. These results are from 15 holes which largely consisted of infill drilling, including six from the Cangrejos deposit and nine from Gran Bestia. In our view, while infill drilling rarely yields surprises, these results include several holes that encountered gold grades well above the resource grade (0.73 g/t AuEq Indicated, 0.53 g/t AuEq Inferred). This is true of both the breccia in Gran Bestia and the high-grade vein in the Cangrejos deposit. Moving forward, if drilling continues to demonstrate the continuity of these higher-grade pockets, they could significantly boost project economics.
We are initiating coverage on Lumina Gold Corp. with a BUY rating and C$2.35/sh target price. Lumina’s Cangrejos Au-Cu project in Ecuador contains the largest primary Au resource in the country. In our view, this is a highly developable project in a jurisdiction that is gaining increasing interest from mid-tier producers as well as major mining companies.
Lumina Gold Corp. (TSXV:LUM) reported results from twelve drill holes, five of which are from the Gran Bestia deposit and seven are from the Cangrejos deposit, at its 100%-owned Cangrejos project in Ecuador. Notably, holes CC22-167 and CC22-160 have demonstrated the potential to add to the mineral resource, change the Gran Bestia pit configuration and influence how much of the existing resource is brought into a mine plan. The potential expansion of the resource could improve future economic studies, and follow-up drilling is warranted. Overall, we believe these are strong and important results. The step-out to the NW at Gran Bestia stretches well beyond previously known mineralization, and, while follow-up drilling is needed, this could lead to a substantially larger pit and longer mine life. Additionally, a second hole expands high-grade near-surface mineralization within the heart of the deposit, an area that is likely to be early in the mine plan.
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.