Brazil Resources Inc. (BRI/TSXV, $0.99) BUY: Target C$2.90
NI 43-101 Maiden Resource announced for the Island Mountain Deposit
Rob Chang (416) 849-5008, Michael Wichterle (416) 849-5005
EVENT
Brazil Resources announced results from a NI 43-101 compliant resource estimate for the Island Mountain deposit, located on the wholly owned Whistler Project in Alaska.
BOTTOM LINE
Positive – The announced maiden resource at Island Mountain deposit builds on the Whistler project which already has an indicated AuEq resource of 2.25M ounces. This resource proves that the Whistler project has numerous porphyry targets with excellent potential for resource expansion. We maintain our Buy recommendation and are increasing our target price to $2.90 per share (+12%).
FOCUS POINTS
- Island Mountain deposit details – Full details include an indicated resource of 0.444M oz. AuEq (25.75 Mt grading 0.53 g/t Au, 1.16 g/t Ag, 0.06 % Cu, or 0.54 g/t AuEq) and an inferred resource of 1.133M oz. AuEq (69.23 Mt grading 0.51 g/t Au, 1.07 g/t Ag, 0.06 % Cu, or 0.51 g/t AuEq), both at a 0.3 g/t AuEq cut-off.
- Additional targets nearby – In addition to both the Whistler deposit and Island Mountain, on the 170 Km2 Whistler land package there are several other porphyry centers (Raintree West, Raintree North, Raintree South, Rainmaker, and Cirque) with mineralized intersections similar to these deposits.
- Back to normal nameplate capacity – With the retrofitting of all active mine areas completed in March, note that so far in April, the mine has been operating at production rates above the nameplate 2,500 tpd.
- Diversifying asset base – In addition to the Whistler Project, the full company portfolio also includes additional gold assets in Brazil and a uranium property (Rea) in the Athabasca Basin.
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