October 6, 2022 (Investorideas.com Newswire) Deposit upside at this polymetallic project in Spain is indicated by the historical mineral resource and past and current drill results, noted a Research Capital Corp. report.
Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCMKTS; LLJ:FSE) reported results of two additional holes drilled at the Romanera deposit and increased the number of active drill rigs there by three to a total of 13, reported Research Capital Corp. analyst Adam Schatzker in an October 3, 2022 research note.
As Emerita continues drilling Romanera, “deposit upside” increasingly comes to light, according to Schatzker. Two factors bode well for the potential resource size of this Spanish deposit. One is that Romanera remains open to the west and at depth. The other is that the historical 34,000,000 ton (34 Mt) resource did not include precious metals content.
“We believe that there is a strong possibility that Emerita will produce a code-compliant resource that is both larger and more valuable (we have assumed a resource of 42.5 Mt),” Schatzker noted.
Accordingly, Research Capital’s target price on Emerita is CA$3.75 per share. This figure implies a significant potential return for investors from where the stock is currently trading, at about CA$0.81 per share.
As for the new Romanera drill results, Schatzker described them as including “one very good copper-rich intercept.” From hole LR029 and the lower lens, the intercept returned 4.3% copper. It is the first intercept at Romanera with greater than 4% copper.
The analyst also noted one of the intercepts demonstrated “strong precious metals results.” From the other hole, LR023, and in the lower lens, this intercept returned 65.7 grams per ton of silver.
Overall, the two holes returned the following copper equivalent grades.
Upper lens: 2.25%
Lower lens: 3.64%
Upper lens: 1.61%
Lower lens: 1.89%
Schatzker pointed out that “the deposit appears to be expanding to the west.” This is because historical drilling at Romanera was not deep enough to reach the lower lens and the closest historical hole that did cut the lower lens was 100 meters to the east of current holes LR019 and LR023.
“We think these results are positive and demonstrate the possible continuity of the Romanera deposit to the west of the historic resource,” Schatzker wrote.
Research Capital has a Speculative Buy rating on Emerita.
1) Doresa Banning wrote 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.
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Disclosures For Research Capital Corp., Emerita Resources Corp., October 3, 2022
Analyst Certification: I, Adam Schatzker, certify the views expressed in this report were formed by my review of relevant company data and industry investigation, and accurately reflect my opinion about the investment merits of the securities mentioned in the report. I also certify that my compensation is not related to specific recommendations or views expressed in this report.
Research Capital Corporation publishes research and investment recommendations for the use of its clients. Information regarding our categories of recommendations, quarterly summaries of the percentage of our recommendations which fall into each category and our policies regarding the release of our research reports is available at www.researchcapital.com or may be requested by contacting the analyst. Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report. Adam Schatzker has visited Emerita Resources Corp. in the past 18 months.
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