Scotia Capital Initiates CoverageThat was fast. The first comment is from yesterday and the second is from today where they raised the target after only 24 hours. GLTA
Scotia Capital’s Eric Winmill initiated coverage of Snowline Gold Corp. (SGD-X) with a “sector outperform” rating and $9 target.
“The company’s flagship project is Rogue, an exploration stage gold project in the Yukon,” he said. “In our view, the Valley discovery at Rogue represents one of the most exciting gold discoveries in recent years, with long intervals of near-surface gold mineralization encountered over a large target area, multiple areas remaining open, and many nearby targets requiring follow-up exploration work.”
“Not only does Valley exhibit strong gold grades across long intervals, but it also boasts a notable vein density, with many areas returning 10 plus veins per metre, meaning fewer tonnes needed to build gold ounces. Management has described this feature as ‘monotonously exciting,’ referring to the regularity and consistency of veins encountered in drilling to date. Indeed, in our indicative base case resource model, we estimate 6.4 million ounces (Moz) Au could be contained at Valley, supporting future production potential of ~300 koz Au annually over a 20 plus year horizon, subject to resource definition, favourable economic studies, permitting, financing, infrastructure, development, and other factors.”
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In response to its maiden resource update for its flagship Rogue/Valley project in the Yukon, Scotia’s Eric Winmill raised his target for Snowline Gold Corp. (SGD-X) to $9.50 from $9, keeping a “sector outperform” rating. The average on the Street is $10.48.
“We view this update as positive for SGD shares as the maiden resource compares favourably to our estimates. We look forward to further results from the 2024 field season where drilling is ongoing with 4,000m completed to date,” he said.