Stifel GMP analysts released a research note on HighGold (TSX-V:HIGH, OTCQX:HGGOF) Mining Inc, saying drilling at its Munro-Croesus project in Ontario’s Timmins gold camp “shows high grade (gold) in 2 structures”.
“We think the company will present an attractive takeout target for a major producer with an ideal combination of deposit scale and regional exploration runway,” the broker's analysts wrote in the note.
“The company's extensive Timmins properties also offer free optionality with no value for them currently reflected in the stock price,” they added, saying “we conservatively include $15 million for the exploration value of the company’s extensive Timmins land package," they added.
The Stifel analysts noted that as HighGold (TSX-V:HIGH, OTCQX:HGGOF) continues to conduct exploration on its flagship Johnson Tract (JT) gold-zinc-copper property in Alaska, they expect the stock to re-rate.
They said the high-grade, bulk tonnage JT Main deposit is ideally situated for low-cost underground extraction and remains open for significant expansion beyond the current 800,000 ounce gold equivalent resource in several directions.
“We also expect advancement of additional targets and discoveries on the historically under-explored Johnson Tract property to create excitement in the market,” the analysts said.
Stifel GMP maintained its “Buy” rating and target price of C$3 per share on HighGold (TSX-V:HIGH, OTCQX:HGGOF) Mining stock.
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