a complete misread of the situation.
Massive drilling ongoing....lots of drill holes from now to end of year....and THEN PEA....and the value will be truly determined. We are just getting started.....from a pro below written TODAY after the announcement...UPGRADED!!!!!!!!!
Industrial Alliance Securities analyst George Topping sees GT Gold Corp. (GTT-X) as undervalued given the potential of its Saddle North project in British Columbia, which he anticipates will draw significant interest from senior producers.
On Monday after the bell, the Vancouver-based miner released its first mineral resource estimate for the property, located in the Golden Triangle region of northwestern B.C.
Mr. Topping called the total resource projection “huge” and “what senior producers want.”
“With around 20Moz AuEq total resources and still open, Saddle North’s size will be attractive to suitors,” he said.
“Senior gold producer Newmont (NEM-N) has already secured its capped 14.9-per-cent stake. Although Newmont owns a Right of First Offer (ROFO) on the Tatogga property, other senior producers will be interested. Newcrest (NCM-A) owns 70 per cent of the Red Chris mine next door. Most senior gold producers appreciate gold/copper porphyries as the copper provides lower AISC and copper-related cash flow still garners a gold multiple.”
Maintaining a “buy” rating for GT Gold shares, he raised his target to $4.50 from $3. The average is $2.85
“GT Gold’s share price is up 58 per cent since we launched coverage (May 12). A PEA based on this resource is anticipated at year-end with a slew of drilling results before then. We maintain our Buy rating but increase our target,” he said.