They show that the resource may be expanded at one of the two properties comprising the project, noted a Hannam & Partners report.
Thesis Gold Inc. (TAU:TSXV; THSGF:OTCQX; A3EP87:WKN) reported drill results from the 4,100 meter (4,100m) summer exploration program at its Lawyers property in British Columbia, reported Jonathan Guy, director of mining research, Hannam & Partners, in an Oct. 24 research note.
"These results suggest the potential for an expansion in scale of both the open pit and underground resource, currently standing at 4,700,000 ounces (4.7 Moz) on a gold equivalent basis, which should improve the production profile and make Thesis more attractive as a mergers and acquisitions target."
Hannam & Partners reiterated its CA$2.48 per share target price on the Canadian explorer, trading at the time of the report at about CA$0.91 per share, noted Guy.
The difference between these figures implies a 173% return on investment.
"We expect the shares to be driven by ongoing exploration, especially from Ranch, with a prefeasibility study scheduled for completion in late 2025," wrote Guy.
The objectives of the recent campaign at Lawyers, targeting Cliff Creek and Dukes Ridge, were infilling, upgrading, and expanding the resource in advance of the prefeasibility study.
Highlight intercepts from near-surface drilling include:
22.62m of 1.16 grams per ton (1.16 g/t) gold and 47.08 g/t silver from hole 24CCDD0018m of 7.29 g/t gold and 327.75 g/t silver, from hole 24CCDD003These results should enhance both the grade and scale of the open-pit component of the mining operation.
One standout intercept from deeper drilling was 4.89m of 3.82 g/t gold and 119.76 g/t silver, in hole 24CCDD005. Result of hole 24CCDD006 indicated the underground mineable resource could be expanded. Currently, the resource is 444,000 ounces of gold and 13.9 Moz of silver.
Thesis Gold has been conducting work at its Ranch property, too. This summer, it drilled 5,400m, testing targets identified over the past year. It also conducted geotechnical drilling and water monitoring. The company developed a test pit at Ranch to evaluate ground quality at the proposed waste storage site. It collected metallurgical samples to optimize the process flowsheet. Thesis continues its baseline environmental study of Ranch, now in the second year.
The current Ranch resource is 303,000 ounces (303 Koz) in the Measured & Indicated category and 378,000 (378 Koz) in the Inferred category, noted Guy. However, he believes the high-sulphidation epithermal system at Ranch hosts a deposit that is several times larger. Also, Thesis has staked new claims north of Ranch.
The preliminary economic assessment (PEA) of Lawyers Ranch, released in September, outlined an open-pit and underground operation producing 215 Koz per year on average, reported Guy. As for costs, for a 12,600 ton per day facility, initial capex is an CA$598 million (CA$598M), and sustaining capex is CA$547M. The average all-in-sustaining cost is US$1,013 per ounce (US$1,013/oz), less than the most recent quarterly industry average, US$1,470 per ounce.
"We calculate a net asset value of CA$1,307M for Lawyers Ranch, using the PEA outputs, a US$1,470/oz gold price, a US$25/oz silver price, and a 5% discount rate," Guy wrote.
Thesis Gold, in general, Guy purported, is a "highly attractive acquisition target," given its scalable resource, location in a low risk jurisdiction and good relations with area First Nations communities.
| Want to be the first to know about interestingSilver andGold investment ideas?Sign up to receive the FREE Streetwise Reports' newsletter. | Subscribe |
Important Disclosures:
Thesis Gold Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. This article does not constitute investment advice and is not a solicitation for any 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. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.For additional disclosures, please click here.
Disclosures for Hannam & Partners, Thesis Gold Inc., October 24, 2024
This Document has been prepared by H&P Advisory Limited ("H&P"), which is authorised and regulated by the Financial Conduct Authority (Firm Reference Number 805667) and is incorporated in England & Wales with no. 11120795. The Document is protected by international copyright laws and may not be (i) copied, photocopied or duplicated in any form by any means or (ii) redistributed (in whole or in part) without H&P's prior written permission. The information contained herein does not constitute an offer or solicitation to sell or acquire any security or fund the acquisition of any security by anyone in any jurisdiction where such an offer or solicitation would be illegal, nor should it be regarded as a contractual document. Under no circumstances should the information provided in this Document, or any other written or oral information made available in connection with it, be considered as investment advice or as a sufficient basis on which to make investment decisions. This Document does not constitute a personal recommendation and, if appropriate, you should seek professional advice, including tax advice, before making investments decisions. The information in this Document does not purport to be comprehensive and has been provided by H&P (and, in certain cases, third party sources such as credit rating agencies) and has not been independently verified. The information set out herein and in any related materials reflects prevailing conditions and our views as at this date and is subject to updating, completion, revision, verification and amendment, and such information may change materially. H&P is under no obligation to provide the recipient with access to any additional information or to update this Document or any related materials or to correct any inaccuracies in it which may become apparent. Marketing Communication This Document does not represent investment research for the purposes of the rules of the Financial Conduct Authority ("FCA Rules"). To the extent it constitutes a research recommendation, it takes the form of NON-INDEPENDENT research for the purposes of the FCA Rules. As such it constitutes a MARKETING COMMUNICATION, has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of dissemination of investment research. Statements Relating to Performance All statements of opinion and/or belief contained in this Document and all views expressed and all projections, forecasts or statements regarding future events or possible future performance represent H&P's own assessment and interpretation of information available to it as at the date of this Document. This Document and any related materials may include certain forwardlooking statements, beliefs, or opinions. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There can be no assurance that any of the results and events contemplated by the forward-looking statements contained in the information can be achieved or will, in fact, occur. Past performance cannot be relied on as a guide to future performance. Distribution Restrictions This document is directed only at persons who: (i) are Qualified Investors within the meaning of Article 2(e) of Regulation (EU) 2017/1129, as it forms part of UK law by virtue of the European Union (Withdrawal) Act 2018, (as amended); and (ii) have professional experience in matters relating to investments who fall within the definition of "Investment Professionals" contained in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the "Order") or are persons falling within Article 49(2)(a) to (d) (High Net Worth Companies, Unincorporated Associations, etc.) of the Order, or fall within another exemption to the Order (all such persons referred to in (i) and (ii) above together being referred to as "Relevant Persons"). This Document is not intended for distribution to or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation and persons into whose possession this Document comes are required to inform themselves about, and observe, any such restrictions. Valuation Assumptions/Risks Please note our valuation estimates provide an assessment of the value of the issuer at a specific point in time, based on public information as well as assumptions and forecasts made by H&P, which are subject to change at any time. It should be noted that the prices of listed equities often deviate significantly from assessments of their fundamental value. Our valuation estimates should not be interpreted as a prediction of the price at which the issuer's shares will trade in future. Company/Issuer Disclosures H&P may from time to time have a broking, corporate finance advisory, or other relationship with a company which is the subject of or referred to in the Document.