Seahawk Gold Corp SEHKF

RE: Osisko Mining Inc. analyst reports:

[Investor4real]

 

Haywood Securities comments on Osisko Mining Inc.

According to Haywood Securities:
 
https://clients.haywood.com/uploadfiles/secured_reports/OSKjul25018.pdf
 
Radar Flash – July 25, 2018 
 
Osisko Mining Inc. (OSK-T, $2.16)
 
Rating: BUY
 
Target Price: $4.50
 
Return: 109%
 
Risk Profile: Very High
 
Further Drilling Results from Infill Program at Windfall
 
Event | Osisko Mining announced further drilling results from its ongoing drill program at its 100% owned Windfall Lake gold project located in the Abitibi greenstone belt, Urban Township, Quebec.
 
Impact – Positive | This morning, Osisko announced results from its ongoing 800,000 metre drill definition and expansion program, with the recent results targeting the Lynx deposit and Underdog zone. The program is now focused on infill drilling within the main Windfall gold deposit, as well as the Company’s adjacent Lynx deposit (located immediately northeast of Windfall).  Additionally, the program is also conducting exploration and expansion drilling on main mineralized zones where the Company reportedly has several deep holes in progress as it investigates the down-plunge areas in and around the Underdog and Lynx zones.  Today’s release consisted of 70 intercepts from 33 drill holes and 5 wedges in the Lynx deposit and Underdog zone. Further details can be found on the Company’s press release: <click here for link>. Please see highlights below and Table 1 and 2 for full details.
 
Highlights include:
 
• Drill Hole OSK-W-18-1593: 2.80 metres grading 494.00 g/t gold (uncut) from a downhole depth of 228.1 metres, including 0.3 metres grading 4,590.00 g/t gold (uncut); 
 
• Drill Hole OSK-W-18-1546: 2.20 metres grading 273.00 g/t gold (uncut) from a downhole depth of 347.7 metres, including 0.9 metres grading 668.00 g/t gold (uncut); 
 
• Drill Hole OSK-W-18-1066-W1: 9.80 metres grading 68.50 g/t gold (uncut) from a downhole depth of 779.5 metres and including 0.4 metres grading 94.30 g/t gold.
 
Implications | Following last week’s release of the Company’s base case PEA for the Windfall project (which excluded narrow, high-grade gold mineralization from the Lynx zone - See Table 3), the recent infill results will assist Osisko in increasing its mineral resource from inferred to indicated, and add to the strength of its resource which is currently modelled to return an after-tax NPV of $413.2 million and IRR of 32.7%. Of the recent 70 intercepts from 33 drill holes and 5 wedges in the Lynx deposit and Underdog zone, results returned a weighted average grade of 31.5 g/t gold (uncut) per metre, with 14 intervals returning results greater that 34 g/t gold (uncut). The PEA modelled an 8.1-year mine life processing an average diluted grade of 6.7 g/t gold for the total production of approximately 1,769,000 ounces of gold. In addition to the infill drilling, the recent release included two extension intercepts: one wireframe extension from Hole OSK-W-18-1593 and one extension in a zone not currently included in wireframes from hole OSK-W-18-1555 (which returned 2.00 metres grading 27.40 g/t gold from a downhole depth of 400 metres).  It also included one intercept from the Lynx zone that was not related to known mineralization to date (OSK-W-18-1461). 
 
Osisko continues its infill and expansion drill program at Windfall, and we await the final results from the Triple 8 discovery announced earlier this month. Meanwhile, a 5,000 tonne bulk sample is currently being defined by underground drilling, with results expected in August. A Feasibility study for Windfall is expected in Q1/19.
 
Valuation | Our $4.50 target is calculated on an after-tax basis considering a 1.0x multiple to our project net asset value (NAV)7% of $1,424.8 million or $4.65 per share and reflecting corporate adjustments. We reach our NAV considering a discounted cash flow (DCF) analysis of the Windfall, Marban, and Garrison projects, an in-situ analysis of the Osborne-Bell deposit and a in-situ additional upside resource potential at Windfall and elsewhere. Osisko Mining trades at 0.46x P/NAV and US$32/oz vs Select North American peers at 0.52x and US$44/oz.
 
Catalysts | 1) Permits for exploration ramp extension to Lynx – H2/18; 2) Windfall feasibility study – Q1/19.

 

Haywood Securities comments on Osisko Mining Inc.

According to Haywood Securities:
 
https://clients.haywood.com/uploadfiles/secured_reports/OSKjul25018.pdf
 
Radar Flash – July 25, 2018 
 
Osisko Mining Inc. (OSK-T, $2.16)
 
Rating: BUY
 
Target Price: $4.50
 
Return: 109%
 
Risk Profile: Very High
 
Further Drilling Results from Infill Program at Windfall
 
Event | Osisko Mining announced further drilling results from its ongoing drill program at its 100% owned Windfall Lake gold project located in the Abitibi greenstone belt, Urban Township, Quebec.
 
Impact – Positive | This morning, Osisko announced results from its ongoing 800,000 metre drill definition and expansion program, with the recent results targeting the Lynx deposit and Underdog zone. The program is now focused on infill drilling within the main Windfall gold deposit, as well as the Company’s adjacent Lynx deposit (located immediately northeast of Windfall).  Additionally, the program is also conducting exploration and expansion drilling on main mineralized zones where the Company reportedly has several deep holes in progress as it investigates the down-plunge areas in and around the Underdog and Lynx zones.  Today’s release consisted of 70 intercepts from 33 drill holes and 5 wedges in the Lynx deposit and Underdog zone. Further details can be found on the Company’s press release: <click here for link>. Please see highlights below and Table 1 and 2 for full details.
 
Highlights include:
 
• Drill Hole OSK-W-18-1593: 2.80 metres grading 494.00 g/t gold (uncut) from a downhole depth of 228.1 metres, including 0.3 metres grading 4,590.00 g/t gold (uncut); 
 
• Drill Hole OSK-W-18-1546: 2.20 metres grading 273.00 g/t gold (uncut) from a downhole depth of 347.7 metres, including 0.9 metres grading 668.00 g/t gold (uncut); 
 
• Drill Hole OSK-W-18-1066-W1: 9.80 metres grading 68.50 g/t gold (uncut) from a downhole depth of 779.5 metres and including 0.4 metres grading 94.30 g/t gold.
 
Implications | Following last week’s release of the Company’s base case PEA for the Windfall project (which excluded narrow, high-grade gold mineralization from the Lynx zone - See Table 3), the recent infill results will assist Osisko in increasing its mineral resource from inferred to indicated, and add to the strength of its resource which is currently modelled to return an after-tax NPV of $413.2 million and IRR of 32.7%. Of the recent 70 intercepts from 33 drill holes and 5 wedges in the Lynx deposit and Underdog zone, results returned a weighted average grade of 31.5 g/t gold (uncut) per metre, with 14 intervals returning results greater that 34 g/t gold (uncut). The PEA modelled an 8.1-year mine life processing an average diluted grade of 6.7 g/t gold for the total production of approximately 1,769,000 ounces of gold. In addition to the infill drilling, the recent release included two extension intercepts: one wireframe extension from Hole OSK-W-18-1593 and one extension in a zone not currently included in wireframes from hole OSK-W-18-1555 (which returned 2.00 metres grading 27.40 g/t gold from a downhole depth of 400 metres).  It also included one intercept from the Lynx zone that was not related to known mineralization to date (OSK-W-18-1461). 
 
Osisko continues its infill and expansion drill program at Windfall, and we await the final results from the Triple 8 discovery announced earlier this month. Meanwhile, a 5,000 tonne bulk sample is currently being defined by underground drilling, with results expected in August. A Feasibility study for Windfall is expected in Q1/19.
 
Valuation | Our $4.50 target is calculated on an after-tax basis considering a 1.0x multiple to our project net asset value (NAV)7% of $1,424.8 million or $4.65 per share and reflecting corporate adjustments. We reach our NAV considering a discounted cash flow (DCF) analysis of the Windfall, Marban, and Garrison projects, an in-situ analysis of the Osborne-Bell deposit and a in-situ additional upside resource potential at Windfall and elsewhere. Osisko Mining trades at 0.46x P/NAV and US$32/oz vs Select North American peers at 0.52x and US$44/oz.
 
Catalysts | 1) Permits for exploration ramp extension to Lynx – H2/18; 2) Windfall feasibility study – Q1/19.

 

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