Streetwise Article from Analyst at Research Capital
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Omineca Mining and Metals Ltd. (OMM:TSX.V; OMMSF:OTCMKTS)announced positive results of drilling the first of five depressions in the underground paleochannel at its Wingdam gold project in British Columbia, reported Research Capital Corp. analyst Bill Newman in a February 8 report.
"The results of the 23-02 drill hole confirm a high gold grade comparable to the 2012 bulk sample but over a larger vertical thickness," Newman wrote.
450% Implied Return
Given the news, Newman reported that Research Capital reiterated its Speculative Buy rating on the Canadian gold mining company.
The financial services firm, however, lowered its target price on Omineca to CA$0.55 per share from CA$0.75, to account for dilution resulting from its recently completed financing. In comparison, Omineca is currently trading at about CA$0.10 per share.
Despite the drop in target price, the projected return for investors remains material at 450%.