The latest drill results are delivered and
interpreted in an iA Securities report.
In an Aug. 1 research note, analyst George Topping reported that iA
Securities raised its target price on Wesdome Gold
Mines Ltd. (WDO:TSX) to CA$7.50 per share from CA$7 because definition
drilling in the Kiena project's Deep A zone "continues to yield
excellent results." The current share price is around CA$7.08.
At the same time, however, iA Securities downgraded the gold company to
Buy from Strong Buy "due to recent rapid share price appreciation,"
wrote Topping.
The analyst reviewed the recently released drill results from Wesdome's
currently closed mine and mill project in Val d'Or, Quebec. Generally,
Topping concluded, Kiena drilling continues to return highly economic widths
and grades and remains open." With its Eagle mine covering exploration
costs, the gold company "is advancing Kiena to one of the cheapest,
quickest restarts available in the industry."
Topping added that iA Securities expects exploration to result in an
estimated 1 million ounces of 8.5 g/t gold before Wesdome restarts Kiena, and
that resource could support annual production of about 100,000 ounces,
expanding to 170,000 ounces per year as exploration efforts progress.
As for the new results specifically, drilling in the Deep A zone, for one,
showed continuation of mineralization for 700 meters (700m) along plunge.
Two, drilling in the zone returned high grades. Hole 6456, for example,
returned "an impressive" 28 grams per ton (28 g/t) gold cut over
14m true width, Topping highlighted. Further, the average grade of the Deep A
Zone intersections was 20 g/t cut over 4.3m true width.
These grades, 28 and 20 g/t, are 82% higher than the 11 g/t grade of the
current Deep A zone resource. However, while the cited intercepts boast
better grades, their widths are thinner than those in the zone overall, of
5–6m.
Three, drilling demonstrated that in the up-plunge extension of the A
zone, what previously was interpreted to be a schist splitting into two zones
now is thought to be a fold into the VC zone, Topping noted. This might be
disappointing news to some, he wrote, "but in reality, it's probably
better to have the gold concentrated in one mineralized zone." In the VC
zone, hole 6523 hit 30 g/t over a 4.3m true width.
Topping indicated that the Canadian explorer and developer intends to
release an updated resource estimate for the project this year and a
preliminary economic assessment in early 2020. Of the roughly 50,000m planned
for drilling in 2019, the company has completed about 30,000m.
Five rigs continue to drill on the property, one at 670m, the other four
targeting infill and plunge extension at the 1,050m exploration ramp.
[NLINSERT]
Disclosure:
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: None. 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) 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 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 interview or
the decision to write an article until three business days after the
publication of the interview or article. The foregoing prohibition does not
apply to articles that in substance only restate previously published company
releases.
Disclosures from iA Securities, Wesdome Gold Mines Ltd.,
Research Update, August 1, 2019
Conflicts of Interest: The research analyst and or associates who
prepared this report are compensated based upon (among other factors) the
overall profitability of iA Securities, which may include the profitability
of investment banking and related services. In the normal course of its
business, iA Securities may provide financial advisory services for the
issuers mentioned in this report. iA Securities may buy from or sell to customers
the securities of issuers mentioned in this report on a principal basis.
Analyst's Certification: Each iA 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 issuer 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.
Analyst Trading: iA Securities permits analysts to own and trade in the
securities and or the derivatives of the issuer under their research
coverage, subject to the following restrictions. No trades can be executed in
anticipation of coverage for a period of 30 days prior to the issuance of the
report and 5 days after the dissemination of the report to our clients. For a
change in recommendation, no trading is allowed for a period of 24 hours
after the dissemination of such information to our clients. A transaction
against an analyst's recommendation can only be executed for a reason
unrelated to the outlook of the stock for the issuer and with the prior
approval of the Director of Research and the Chief Compliance Officer.
Company Related Disclosures:
Wesdome Gold Mines Ltd.: The analyst has visited the issuer's operations. No
payment or reimbursement was received from the issuer for the associated
travel costs.
