RE:RE:Analyst Site Visit The CIBC review is out. Much the same as TD and RBC. Price target remains $4.50 in 12-18 monhts. Highlights below:
Exploration:
One key update on the site tour was the potential for the Victory deposit to grow. Based on a better understanding of controls on mineralization, Marathon has been drilling further south, closer to the contact between the hanging wall and footwall than previous drilling at Victory (see map in Exhibit 7). Though no assay results are back yet, initial results demonstrate extensional Quartz-Tourmaline-Pyrite veining in the core, the typical host of mineralization at the project. We view this as a positive indication that additional mineralization could be found at Victory, which currently hosts a small resource of 150koz at 1.32g/t. In addition, drilling at Berry remains ongoing. The company expects to release an updated resource estimate for the whole project in mid-2022, which could include an initial reserve for Berry. Berry currently hosts a 0.64Moz inferred resource at 1.75 g/t.
Potential Catalysts:
Conclusion of EA (Q4/21), commencement of mine construction (Q1/22), updated mineral resource estimate (mid-2022), and mine construction (Q/22).