TSX:SUE.WT - Post by User
Post by
nemoraon Dec 13, 2010 7:19pm
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Post# 17840780
...increasing target price to $3.15...
...increasing target price to $3.15...
"Growing, low-capex intensity, heap-leachable gold/silver resource in prolific Peruvian mining country. Sulliden Gold is a Canadian-based gold exploration company focused on advancing the 100%-owned, 80-km2 Shahuindo gold/silver project in northern Peru. We believe a compelling opportunity exists for Sulliden's shares to rerate as the company's drilling efforts expand the 1.34 Moz. I&I gold resource (1.1 Moz. in oxide) and as Sulliden transitions from explorer/developer to producer over the next 24 months.
Maintain Buy rating but increasing target price to $3.15 from $1.90. . .We contend that upon completion of the company's 2010 drill program, the mineable resource is poised to expand. Sulliden is some 24,000 meters into a 30,000m drill program. Importantly, repeated success intersecting gold mineralization outside the AMEC grade shells, both laterally and at depth, has helped reaffirm our view that the in-pit resource is poised to expand, likely well beyond our conservative estimate of 1.5 Moz. Given the drilling success YTD. . .we are again raising our assumption for the in-pit oxide resource to 2.2 Moz. at a grade of 0.7 g/t gold. This compares with the December 2009 in-pit resource estimate 850 Koz. at 0.70 g/t. Outside of the Main Mineralized Corridor (MMC), other opportunities exist for resource expansion, notably in the North and South Corridors and along strike in the untested IP anomalies." |