Post by
savyinvestor333 on Sep 08, 2021 7:14am
From Scotia this Morning
Warintza Central Drilling Returns Long Copper Intervals with Consistent Grades
OUR TAKE: Positive.
Solaris announced three additional holes (SLS 27 to 29) from drilling at Warintza Central, highlights include SLS-29 with 1,184m of 0.68% Cueqv (with 480m of 0.80% Cueqv from 48m depth), SLS-27 that returned 462m of 0.91% Cueqv from near surface (with 372m of 1.02% Cueqv from 36m), and SLS-28 with 632m of 0.68% Cueqv. Maiden drilling has also started at El Trinche to the south of Warintza Central and an additional rig has been added at Warintza East (see our July 20 note). To date, 40 holes have been completed at Warintza with results released for 29 holes thus far.
We view the continued exploration success at Warintza positively as the latest results continue to intersect long intervals of relatively high-grade copper mineralization with grades consistent with prior drilling. The strike length at Warintza Central measures over 1,250m with ongoing drilling aiming to extend the zone further to the east, broaden the zone to the north, and test the potential for a southern extension of at least 500m at El Trinche.
We continue to expect an updated resource at Warintza Central to be released in Q4/21 or early 2022. SLS shares are rated SO with a C$14 price target. KEY POINTS Detail - Hole SLS-27 was collared in the southwestern part of Warintza Central and drilled into a partially-open volume to the northeast. SLS-28 was collared in the middle of Warintza Central and drilled into a partially-open volume to the northeast. SLS-29 was collared at the southeastern limit of the Warintza Central grid and drilled into an open volume to the east.
Solaris reports that a drilling backlog has built up due to assay lab delays and increased newsflow is expected through September to year-end. Location of drilling is shown in Exhibit 1 and a dynamic 3-D image of drilling is shown on the company's website. Valuation – After including an update for Q2/21 financial results, SLS shares are currently trading at 0.87x our P/NAV estimate using Scotiabank GBM's long-term copper price of $3.25/lb.