RE:RE:Scotia report and target raise to $14.00Oops to quick on the typing. Thanks for correcti ng.
Zipolitemexico wrote: Hey Savvy. Thanks for those target updates. I think that one should read target price from $14 to $16 Cheers Zipo quote=savyinvestor333]Maiden Drilling Commences at Warintza South; Geophysical Signature Extended at Key Targets
OUR TAKE: Positive.
Solaris Resources announced that maiden drilling has commenced at Warintza South, a high-priority target with the first hole collared ~3 km south of Warintza Central. The company has also retained the services of Condor Consulting to re-evaluate the geophysical data from site; as a result of this work dimensions of key targets have been improved including expanding the Warintza South target to dimensions of 2.5km x 2.0km x 0.7km deep. SLS intends to use its 12-drill fleet at the project to target aggressive step-out growth and discoveryoriented drilling over the balance of the year and into 2022.
We view the start of drilling at Warintza South positively as we see this as a potentially large new target area that could significantly expand the scope and scale of Warintza pending future drilling success.
With drills now turning at Warintza South, we have increased our exploration component at Warintza to $450M (vs. $200M previously), prompting an increase in our price target to C$16 (from C$14 previously). We look forward to the receipt of future exploration results from the project and the forthcoming resource update, which we expect in late 2021 or 1H/22. SO rating maintained.
Detail – Solaris notes that the Warintza South high-conductivity anomaly is more than twice the size of Warintza Central with a similar geochemical signature where it is exposed at surface. The anomaly consists of overlapping copper and molybdenum geochemical anomalies covering the exposed portion of the surface. The locations of the Warintza target areas are shown in Exhibits 1 to 3. Geophysics – Condor Consulting was retained for interpretation work on the previously completed advanced airborne ZTEM survey, which expanded the Warintza East anomaly to the east and northwest (overlapping with Yawi). Additionally, geochemical coverage was extended to targets beyond the Warintza porphyry cluster along with the dimensions of Warintza South and Yawi.
Valuation – At Scotiabank GBM’s long-term copper price assumption of $3.25/lb, SLS shares are currently trading at 0.89x our P/NAV10% estimate vs. base metal developer peers at ~0.76x, however we believe Solaris shares can re-rate higher and should trade at a premium given Warintza's relatively high grade nature and continuous tenor of mineralization, good access to infrastructure, exploration upside, and backing by a wellknown management team at Augusta Group with a proven track record
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