Canaccord TargetHoping this puts a spark back in the share price
increase
Snowline's first-mover land position provides a unique opportunity for investors to be part of multiple discoveries and the creation of a new gold district,” according to Canaccord Genuity analyst Peter Bell. He initiated coverage of Vancouver-based company with a “speculative buy” recommendation on Friday, calling its discovery in Yukon as “significant.”
“Snowline Gold Corp. is a Canadian gold exploration company led by CEO Scott Berdahl that operates out of the highly prospective, yet underexplored, Selwyn Basin located in Yukon, Canada,” said Mr. Bell. “The company is exploring its flagship Rogue and Einarson Projects as part of its eight project portfolio totaling more than 333,000 ha. Snowline is fully funded and kicked off its 2023 drill program in May which will consist of over 18,000 metres of drilling across its land package. Although much is left to be proven at the drill bit, we believe assays received to date provide strong support for a significant deposit in a new and growing district. We like SGD for its strong leadership and exploration teams, quality jurisdiction with low geopolitical risk, and a large land package in a very prospective and underexplored area.”
The analyst estimates Snowline’s drill results point to 9.2 million ounces of gold, which he said “represents one of the most significant discoveries globally over the past decade from our perspective.”
“Snowline has a portfolio of land totaling 330,000 hectares in the eastern Yukon,” he said. “There are multiple gold targets in the area including orogenic gold at its Jupiter prospect within its Einarson property and reduced intrusion related gold (RRIGS) at Valley, within its Rogue property. The land package covers a very large area of prospective geology. The remote location has limited previous exploration work and the area is very poorly explored. We view this as a frontier exploration district in a top-tier jurisdiction.”
Mr. Bell set a Street-high target of $14.50 per share, exceeding the $10.67 average.