Ryan Walker, an analyst with Echelon Wealth Partners, reported in a June 26 research note that new drill results revealed additional high grades and extended the mineralization at the A zone of Wesdome Gold Mines Ltd.'s (WDO:TSX) Kiena Deep discovery in Val d'Or.
As for the results from the latest batch of holes, "visible gold was observed in the majority of the drill holes within predominantly shear zone-hosted quartz veins," Walker relayed. Assays showed "impressive, multiounce, high-grade mineable intervals." For instance, hole 6300 hit 132.1 grams per ton (g/t) gold over 13.2m at a 6.4m true width, and hole 6308 hit 42.6 g/t gold over 12.6m at a 10.4m true width.
Results confirmed the continuity of the mineralized zones and that the "dip of the contact is shallow to the east," Walker clarified. They also suggested "additional potential for downplunge mineralization along the bend or 'kink' in the hosting shear zone."
The A zone remains open along strike in both directions and down dip. Drilling continues with three rigs, with the goals of better delineating the known mineralization and potential extensions, and perhaps discovering new zones. Assays remain pending for 10 other drilled holes.
Along with a steady flow of Kiena assay results (drilling is in progress at the Upper Quartz and VC zones, too), upcoming catalysts for Wesdome include an updated project resource estimate in Q4/18 and improved "production and exploration from the Eagle River underground mine in Ontario," wrote Walker.
He reiterated that Echelon has a Top Pick status, a Speculative Buy rating and a CA$4.40 per share target price on Wesdome. The miner's stock is currently trading at around CA$2.90 per share, "a good entry point" ahead of the near-term catalysts, he added.
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1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
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Disclosures from Echelon Wealth Partners, Wesdome Gold Mines Ltd., June 26, 2018
Echelon Wealth Partners compensates its Research Analysts from a variety of sources. The Research Department is a cost centre and is funded by the business activities of Echelon Wealth Partners including, Institutional Equity Sales and Trading, Retail Sales and Corporate and Investment Banking.
I, Ryan Walker, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that I have not, am not, and will not receive, directly or indirectly, compensation in exchange for expressing the specific recommendations or views in this report.
During the last 12 months, has Echelon Wealth Partners Inc. provided financial advice to and/or, either on its own or as a syndicate member, participated in a public offering, or private placement of securities of this issuer? No
During the last 12 months, has Echelon Wealth Partners Inc. received compensation for having provided investment banking or related services to this Issuer? No