Argonaut sets 10c target price for Genesis Minerals
8th June 2018
Resources Rising Stars
Veteran Perth resource analyst James Wilson from Argonaut Securities has taken a liking to emerging gold company Genesis Minerals (ASX: GMD), issuing a Spec Buy recommendation and 10c price target for the stock on the back of latest drilling results from its Ulysses project in WA.
This is well above its current price range of 3.5-4.0c.
Wilson says the latest drilling results show “strong potential” to feed into a “material” resource upgrade by mid-year.
The current drill program at Ulysses (which is continuing with three rigs operating) is designed to extend the current 321,000oz resource at depth.
“The program is designed to test the depth extents up to a vertical depth of 400m and covering over 1km of mineralised strike extent,” Wilson wrote. “Feasibility studies on the underground potential of the project are continuing.
Latest assay results from the drilling included 6m @ 5.85g/t Au from 259m, 2m @ 9.23g/t Au from 237m, 2m @ 5.09g/t Au from 293m and 4m @ 4.37g/t Au from 168m.
“Importantly, the 6m @ 5.85g/t Au result is interpreted to come from a new zone of mineralisation, not previously seen in what looks like a series of intersecting structures (link and splay structures) which connect the previous zones to new mineralisation.
“GMD believes this to be part of a newly identified high grade shoot formed by the intersection of the Ulysses East quartz dolerite and the footwall splay off the main Ulysses shear.
“This is a strong positive as it increases the potential ounces per vertical meter across the Ulysses deposit,” he said.
“Perhaps most interestingly is the deposit now showing significant upside potential.
“Drilling has outlined that mineralisation clearly persists at depth with the current round of RC and Diamond Drilling targeting zones up to 200m below the existing resource. The system remains open in all zones as well as the new zones located along strike which have yet to be meaningfully tested.”
Image supplied by Genesis Minerals
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