Eight Capital - Buy rating issued for ValOre7 Dec 2019 06:28
Highlights from the buy note issued by Eight Capital,.....GL S
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“We recommend ValOre Metals as a BUY with no target price. Re-branding of this Discovery Group company (which includes the acquired Kaminak, Great Bear (GBR, Not Rated)) from successful high grade uranium explorer into diversified explorer with platinum group metal and gold exposure gains momentum. Its new exploration methodology is proving successful with identification of high grade PGM+Au at its new Pedra Branca property in Brazil. This district-scale project, acquired in August 2019, came with over 30 years of underutilized data that cost previous owners over US$35 MM. Management announced its initial 1.067 MM oz PGM+Au resource (see PR) and is leveraging the data and new exploration methods into potential new discoveries and ultimately further resource growth.”
“Grab sample assays confirm new methodology. All four grab samples at CO4 target returned compelling PGM+Au, and represent an exciting new target (dare we say discovery?). There were no previous signs of ultramafic rocks, or historical soil, rock or stream sediment data over the target. A local VO geologist has worked on this property for over 30 years, but had not identified chromatite here until aided by this suite of exploration tools that can look through a thin layer of overburden in this arid environment. Assay results include up to 23 ppb Au, 7.6 g/t Pt, 0.3 g/t Pd totaling 7.945 g/t PGM + Au; averaging 3.63 g/t Pt, 1.08 g/t Pd (3.3:1 Pt:Pd ratio) for 3.92 g/t PGM + Au.“
“Satellite imagery helps pinpoint the right rocks. Previous exploration cost over $35 MM, but past owners failed to figure out the geology. Past drill hole misses couldn't be explained, and chromitite host rock within a pyroxenite-chromitite- dunite ultramafic sequence wasn't recognized. VO's high spectral satellite survey has identified chromitite rocks in areas yet to be mapped.”
Chromitite + spectral satellite imagery + magnetics = high priority targets. Using this blend of exploration techniques, specifically the spectral imagery for the first time, has helped identify numerous high priority, near surface PGM targets along a 45km trend. 3D magnetic inversion was created for all five of the deposit areas. Two targets have successfully been located by confirmatory prospecting and mapping, to reveal areas of near surface, disseminated PGM + Au mineralization, chromitite rocks, and today's grab sample results.“
“1.1 MM oz PGM+Au inferred resource. Five distinct deposits host 27.2 MMt at 1.22 g/t PGM+Au for 1.067 MM oz. Surface mineralization is found over a 4km strike. Unlike today's Pt rich assays, the current resource is roughly 60:40 Pd to Pt. A previous JORC resource had suggested 2-3 MM oz of PGM+Au, but management believed that estimate to be too loose and greatly restricted what holes were included. Over 100 trenches should help expand resources quickly.”
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