Co. Reveals Significant Copper Results from Historical Mine
Emerita Resources Corp. has released drill results from the first phase of drilling at the El Cura deposit on the company's 100% owned Iberian Belt West project. Read on to see what analysts have to say about this company's stock.
Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCMKTS; LLJA:FSE) announced in a press release on January 31, 2023, that the company has an update on its recent drilling on the El Cura section of its Iberian Belt West property. El Cura has been subject to historic drilling in the past two centuries, with the majority of this activity occurring in the mid-1900s, Emerita reports.
Phase 1 of the program, according to the company, found geological evidence of mineralization similar to that at the La Romanera deposit in the form of massive sulfides. Drill intercepts were spaced 175m to 250m apart, and Emerita reports that five out of six drill holes cut mineralization, with drill hole EC007 finding the highest-grade copper mineralization.
The company reports that drill hole EC002 found 0.2% copper (Cu), 0.1% lead (Pb), 0.1% zinc (Zn), 87.0 grams per tonne (g/t) Ag, and 0.59 g/t gold across 2.7m starting at a depth of 291.7m. Drill hole EC003B found 0.9% Cu, 0.9% Pb, 0.3% Zn, 26.3 g/t Ag, and 0.75 g/t Au across 8.2m starting at a depth of 199.6m. Drill hole EC004 found 0.6% Cu, 1.2% Pb, 2.0% Zn, 38.1 g/t Ag, and 1.12 g/t Au across 3.0m starting at a depth of 400.5m. Drill hole EC005 found 0.4% Cu, 0.4% Pb, 1.1% Zn, 36.0 g/t Ag, and 1.70 g/t Au across 0.8m starting at a depth of 321.4m. Drill hole EC006 found 0.9% Cu, 0.5% Pb, 0.7% Zn, 65.7 g/t Ag, and 0.52 g/t Au across 2.8m, including 0.1% Cu, 0.9% Pb, 1.9% Zn, 37.9 g/t Ag, and 0.46 g/t Au across 2.8m. Drill hole EC007 found 2.9% Cu, 2.3% Pb, 4.6% Zn, 82.5 g/t Ag, and 2.81 g/t Au across 2.2m starting at a depth of 225.6m.
The President of Emerita, Joaquin Merino, commented, "We are encouraged by our first drilling campaign at El Cura. Despite broadly spaced and limited drilling, our exploration team confirmed the presence of an extensive mineralizing system at El Cura capable of producing high-grade results evidenced by hole EC007, which returned high-grade copper and zinc mineralization."
He went on to say, "As work continues at El Cura, we expect to eventually narrow our focus as the mineralizing system becomes better understood. With this drilling, we can now target more effectively areas where higher-grade mineralization may occur, such as in the vicinity of EC007."
Mining.com provided a breakdown of mineral grades, and stated that more than 2 grams for gold is considered high grade, while more than 1% of copper is considered high grade. Drill hole EC007 found both of these grades.
On the Cusp of a Gold Rally
On January 26, 2024, Sprott Money reported that it believes that gold and silver, which recently dipped in value, are soon to finish corrections. Sprott's outlook on gold seems to be very bullish in spite of the recent downturn. According to the report, "The peak in the 10-year and the DXY will signal the beginning of the rally to new record highs in Gold."
Copper also looks set to take off as a result of the Federal Reserve's rate cuts, according to a report by Bloomberg from January 23, 2023. In a discussion with Bloomberg, Robert Friedland commented on the current copper shortage and said that the market is "very, very tight and now in deficit."
Possible 349% Return
Technical Analyst Clive Maund included Emerita in a list of "Immediate Buys" on August 13, 2023. Maund commented on the company's stock patterns, "The five big white candles on strong volume over the past month or so are bullish." Maund continued to suggest that investors should take notice if the stock reaches the value of CA$0.70.
Varun Arora with Clarus Securities rated the company as a "Speculative Buy" for investors in June of 2023, with a target share price of CA$3.75 and a potential return on investment of 349%. Varun cited the company's maiden resource report for the Iberian Belt West property. Arora commented, "We believe the maiden resource confirms our view that IBW will be a mine with our estimated CA$730 million (CA$730M) net present value."
An Atrium Research report from January 26, 2024, included the company's stock in a list of "top ideas from VRIC 2024" and highlighted the company's mineral resource from the Iberian Belt West, which the company called "comparable to some of the largest Zinc mines in the world."
The company's investor presentation reports a number of catalysts, including ongoing drilling on the La Romanera and La Infanta deposits on the Iberian Belt West, as well as the Nuevo Tintillo property, and metallurgical work expected to produce results in Q1 of 2024.
Ownership and Share Structure
Streetwise Ownership Overview*
Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCMKTS; LLJA:FSE)
*Share Structureas of 2/1/2024Source: Emerita Resources Corp.Refinitiv provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 5.61% of the company. According to Refinitiv, Chairman Michael Lawrence Guy owns 1.84% of the company with 4.32 million shares, CEO David Patrick Gower owns 1.18% of the company with 2.76 million shares, President Joaquin Merino-Marquez owns 0.89% of the company with 2.09 million shares, Director Catherine Stretch owns 0.68% of the company with 1.60 million shares, Director Marilia Bento owns 0.43% of the company with 1.00 million shares, CFO Gregory Duras owns 0.28% of the company with 0.65 million shares, Corporate Secretary Damian J.D. Lopez owns 0.20% of the company with 0.46 million shares, and Executive Vice President Ian T. Parkinson owns 0.11% of the company with 0.25 million shares.
Refinitiv reports that institutions own approximately 1.26% of the company, as Merk Investments L.L.C. owns 1.17% of the company with 2.75 million shares, and Palos Management Inc. owns 0.09% of the company with 0.20 million shares.
According to Refinitiv, there are 234.82 million shares outstanding with 221.63 million free float traded shares, while the company has a market cap of CA$75.16 million and trades in the 52-week period between CA$0.26 and CA$1.03.
| Want to be the first to know about interestingGold investment ideas?Sign up to receive the FREE Streetwise Reports' newsletter. | Subscribe |
Important Disclosures:
Emerita Resources Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.For additional disclosures, please click here.