KBR: SPEC BUY; new target $3.15, up from $2.65)Looking over my updates from privileged sources and see the following is update this week from Canaccord – this was sent to me on April 26, 2011:
Kimber Resources Inc. (KBR : TSX : SPECULATIVE BUY; new target $3.15, up from $2.65)/WZ
We now value KBR based on a 0.6x multiple to our NAV 10% of US$257.3 million (was US$217.3 million) using our peak Au and Ag scenario of US$1,600/oz Au and US$47.5/oz Ag (was US$1,500/oz Au and US$30/oz Ag). We have adjusted our risk multiple from 0.7x to 0.6x to reflect deteriorating industry NAV multiples. KBR expects to advance development and economic studies at the Monterde deposits, including the completion of a pre-feasibility study, which is being targeted for September/October 2011. In addition, baseline environmental studies continue and feasibility-level environment studies could be available by Q4/11. The company is reviewing areas to optimize the current mine plan. Diamond and RC drilling is currently ongoing, which includes expansion and infill targeting, as well as step-out exploration. An updated mineral resource estimate is planned for August/September
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P.S. I am also very keen on a new deal to the market with what looks like legs – it is a past producing high-grade silver-gold mine in Mexico with historically documented resource potential and near term high-grade Au-Ag open pit production potential. It has a operational crusher and heap leach pads on site now that will be scaled up, it is figured in circles that the first 1M oz gold and 35M oz silver will be easy low-risk high reward as the historic reserves and historic mine plan shows lots of gold there for the taking. Potential larger target for exploration indicates 4M oz gold and 150,000,000 oz silver. The mine was shut down in 1927 due to a miners strike and kept out of public hands till recently and was only high graded in spots since with no drill holes – here is recommended reading https://miningmarketwatch.net/wer.htm good one to add to ticker.