Post by
savyinvestor333 on Sep 28, 2021 7:03am
From Scotia this Morning
Solaris Resources Inc. Warintza East Drilling Continues to Expand Mineralized Footprint
OUR TAKE: Positive.
Solaris Resource reported additional assay results from drilling at the flagship Warintza project in Ecuador. SLSE-02 represents the second hole drilled at Warintza East and returned 320m of 0.48% Cueqv, including 62m of 0.68% Cueqv from surface. In addition, SLS reported the remaining assays from hole SLS-01 with the entire hole returning 1,213m of 0.28% Cueqv including the previously reported 320m of 0.46% Cu eqv from surface (see our July 20, 2021 note for details here). Notably too SLS reported that drilling results to date suggest an offset of higher-grade mineralization to the north that is being targeted with future drilling and suggesting potential to extend a “super pit” to the north and east.
Overall we view the latest drilling results from Wartinza favourably as they continue to expand the mineralized footprint including higher-grade areas located near surface.
SLS shares are rated SO with a C$14 price target.
KEY POINTS Detail - SLSE-01 was collared approximately 1,300m east of Warintza Central and drilled to the southwest, while SLSE-02 was collared from the same platform but drilled to the northwest. Remaining assays from SLSE-02 are expected in October, along with the results of step-out drilling from Warintza Central. Location of latest drilling is shown in Exhibits 1 and 2. Valuation - SLS shares are currently trading at 0.78x our P/NAV estimate using Scotiabank GBM's long-term copper price of $3.25/lb.