Solaris Resources Inc.’s (SLS-X) Warintza project in Ecuador is a “standout in the copper space,” according to Canaccord Genuity analyst Michael Pettingell.
In a research report released Thursday, he initiated coverage of the Vancouver-based junior exploration company, which is a spin-off of Equinox Gold’s assets that began publicly trading in July, with a “speculative buy” recommendation.
“The Warintza project is an emerging high-grade copper porphyry discovery located in the relatively new and largely underexplored Zamora mineral belt,” Mr. Pettingell said.
“While Warintza remains an early-stage discovery, we note that the project shares many of the key features associated with the more established, +/- billion tonne, copper porphyry deposits within the district. Apart from the temporal relationship (all linked to Late Jurassic magmatism), observed similarities include comparable styles of mineralization, alteration and sulphide abundance. While not definitive, we view these as fundamental indicators for a potentially large undiscovered porphyry system within the Zamora Cu-Au belt.”
The analyst also called Warintza “among one of the few unencumbered, non-technically challenged copper projects that is 100 per cent in the hands of a junior company.”
“Furthermore, relative to its peers, Warintza has gained significant exploration momentum on the back of its sizable drill program and impactful news flow,” he said.
Also touting its “tier one sponsorship” and seeing drilling suggesting “Solaris is on the margins of what may develop into an extensive Cu-Mo porphyry system,” Mr. Pettingell set a $6.50 target for Solaris shares. The average is $9.10.