Broker a note out27 Oct 2021 09:44
Labola maiden resource estimate, valuation upgrade
Panthera Resources plc, the gold junior focused on Burkina Faso, Mali and India, has announced a maiden NI 43-101 resource estimate for the indirectly owned Labola project in Burkina Faso. We see this initial resource across the indicated and inferred categories of 635,000 oz Au as being highly significant in terms of scale. This together with the excellent scope for expanding the resource base points, in our view, to a potentially commercial deposit of well over 1m oz Au. The grades are typical for Birimian greenstone plays in southern Burkina Faso. Soon to be acquired by TSX-V Diamond Fields Resources (DFR), Moydow the operator of Labola is planning a ‘substantial drilling programme in 2022’ to appraise the scale of the project. Further positive news flow is a distinct possibility in the months ahead as DFR advances Labola to Bankable Feasibility (BFS) status probably over the next two years. Significantly, Panthera is free-carried on Labola project development.
Labola project: Labola is Moydow/Panthera’s most advanced project. Geologically it lies on the second most westerly of the NNE trending Birimian Greenstone zones in southern Burkina Faso. The location is about 450 km west-southwest of the Burkina Faso capital, Ouagadougou and 100 km northeast of Endeavour Mining’s (EDV.L) Wahgnion mine. Labola has been extensively worked over by artisanal miners and subject to considerable RC (reverse circulation) and diamond drilling by previous operators. These include Toronto-based High River Gold (subsequently acquired by Nord Gold) and the South African private company, Taurus Gold. Historically, more than 65,500m of drilling has been undertaken at Labola. Three parallel vein systems have been identified by satellite imaging and drilling. There is 30 km of known strike. Presently, Panthera has a 44.1% indirect interest in Labola through its stake in British Virgin Island-based, Moydow Holdings Ltd. Panthera’s interest will drop to 20% following the pending acquisition of Moydow by DFR and the Labola free-carry farm-in agreement. There is, however, a $7.2m back-in right to 30% after completion of the BFS.
10.25p
Mining Code PAT.L
Sector
0
Oct-19 Mar-20
AIM
40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0
–
Aug-20 Volume (k) (LHS)
Jan-21
1m
Jun-21
Price (p) (RHS)
3m 12m
-29.3% -24.1%
9.3 90.9
High Low
37 8.75 31 March
Vidacos Nominees Ltd 16.88% Merrill Lynch Pierce Fenner 9.16% J2 Resources Pty Ltd 8.79% Republic Investment Mgt 6.87% Vidacos Nominees Ltd 151004 6.52% Pershing Nominees Ltd 5.55% Source: Company Data, Allenby Capital
Peter J Dupont
0203 002 2078 p.dupont@allenbycapital.com www.allenbycapital.com
Equity Research
— PAT.L
-16.3% Source: Reuters Eikon, Allenby Capital
Share Data
Market Cap (£m) Shares in issue (m) 52 weeks (p)
Financial year end
Source: Company Data, Allenby Capital
– Resource estimate: The Labola NI