With 13 rigs active on its project in Spain, this Canadian mining company should continue to announce results in the short term, notes a report from Research Capital Corp.
Emerita Resources Corp. (EMO: TSX.V; EMOTF: OTCMKTS; LLJ: FSE) announced additional drilling results from its Romanera project in Spain, which are helpful in the ongoing effort to determine the boundaries of the deposit, the Research Capital Corp analyst reported. Adam Schatzker in a research note dated October 14, 2022.
“Overall, we believe the drilling successfully demonstrates the validity of the historic resource while highlighting the potential to significantly increase the size of the deposit,” Schatzker wrote.
Meanwhile, the Canadian explorer has 13 rigs drilling there around the clock.
Research Capital has a speculative buy rating and target price of C$3.75 per share on Emerita, which is currently trading at approximately C$0.83.
This “should help ensure a fairly steady flow of news and accelerate the company’s ability to generate a new 43-101 compliant resource” in 2023, Schatzker commented.
He reviewed the new results, which he described as “mixed”, from holes drilled to test the strike outside the historic Romanera resource. Schatzker reported the three holes that encountered base and precious metal mineralization: LR024, LR028 and LR020. The fourth hole intersected mainly pyrite.
The three holes were drilled to test mineralization at approximately 225 meters (225m) depth and over 450m strike. Of the trio, Schatzker noted, LR024, placed in the Historic Resource Area, performed best. Intersecting the upper and lower lenses, LR024 shows 10.6 m of 6.55% copper equivalent (Cu eq) and 30 m of 3.89% Cu eq.
LR028 was drilled west of LR024 and intersected the upper and lower lenses. The intercept widths are “quite narrow” compared to the average widths of Emerita’s drilling on the project, Parkinson said. The grades are below the historic resource grade.
LR020 was drilled east of LR024 and intersected only the lower lens. Except for one intersection, 16.6 m of 2.33% Cu eq, the widths and grades are similar to those of LR028.
“The company believes the drilling has demonstrated the existence of two subparallel lenses that merge to the west and appear to continue below EMO’s drilling depth,” Schatzker explained.
Emerita also believes that mineralization at Romanera extends below 500m and there are untested deposits remaining. Drilling continues.
Research Capital has a speculative buy rating and target price of C$3.75 per share on Emerita, which is currently trading at approximately C$0.83.
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Adam Schatzker visited Emerita Resources Corp. over the past 18 months.
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