Voltalia Ord Shs VLTAF

RE: Jennings 5.25 target on Volta

[MrBlonde16]

March 23, 2011


  Recommendation:  BUY
VOLTA RESOURCES INC.  12-Month Target:  C$5.25
(TSX-VTR $2.02)  Risk Rating:  AVERAGE

INITIATING COVERAGE

KIAKA IS THE NEXT ESSAKANE

?  Grade is not always King
The Kiaka Project may not be the highest grade deposit
in Burkina Faso, but it has several other attributes that
make it equally, if not more, desirable. The deposit starts
right at surface and has the higher grades close to the
surface. The strip ratio for the first few years would be
less than 1:1 and grades as high as 1.40 g/t gold. 
?  Resource update in June could be 3.5 million oz
gold
Within a drilling period of only seven months, Volta
Resources was able to outline a 1.9 million oz gold
resource at Kiaka. Infill drilling started immediately
thereafter, and we expect Volta to announce an updated
resource estimate of 3 - 3.5 million oz gold in June (NI 43-
101 compliant). 

?  VTR shares are most undervalued in West Africa 
Volta shares are currently trading close to a 48%
discount to our estimated net asset value of
C$3.64/share as compared to the North American gold
developers that are trading at 1-2x their NAV.

?  Catalysts 
?  More infill drill results from Kiaka 
?  Drill results from Nassara once drilling starts in May
?  New updated Kiaka resource due in Q2/2011
?  Complete pre-feasibility study at the end of 2011
?  Complete feasibility study at the end of 2012
?  Commence drilling at Titao in September
?  Gold Production at Kiaka in mid-2014

We are initiating coverage on Volta Resources Inc.
with a BUY recommendation and C$5.25 target price.

Sector: METALS AND MINING
Analyst: ALKA SINGH, CFA, MBA, B.SC.

Volta Resources Inc. is a Canadian-based gold exploration and
development company, engaged in acquisition and exploration of
gold prospects in West Africa. VTR was established by the merger
of two West African junior mining companies, Birim Goldfields Inc.
and Goldcrest Resources Ltd. in March 2008. 
Company Statistics
Market Cap. C$270.5 million
Basic Shares O/S (MM) 133.9 million
Ful ly Di luted Shares O/S (MM) 140.7 million
52-Week Range  C$1.04 - C$2.65
Cash and Equivalents (current) C$30 million
Total  Debt (current) n/a
Enterprise Value C$240.5 million
Kiaka Gold Project NI 43-101 Resource
Category Tonnes (Kt) Au (g/t) Metal Au (Koz)
Indicated 41,250 1.04 1,384.0
Inferred 15,900 0.90 480.0
Total 57,150 1.00 1,864.0
Current Share Price $2.02
Adjusted Net Asset Value $3.64
P/NAV 0.5x