A July 9 research note indicated that Echelon Wealth Partners selected Revival Gold Inc. (RVG:TSX.V) as a Top Pick based on expectations for its 2018 drill program that aims to expand the resources at Beartrack in Idaho. The company plans to drill 8,000 meters along the Panther Creek Fault, which primarily hosts Beartrack's mineralization and which is open along strike and at depth. Analyst Gabriel Gonzalez wrote, "We believe there is good potential for the company to add resources to the recently announced 1.98 million ounce (Indicated plus Inferred) resource estimate."
Gonzalez listed the positive attributes of this gold exploration and development company. For one, Revival has strong assets, including Beartrack, which produced more than 600,000 ounces between 1995 and 2001, and Arnett Creek.
Revival has good optionality to an increasing gold price at Beartrack. Along with the existing 1.98 million ounces of mineral resources in a pit there, it has 488,000, or 25% more, ounces, contained in a 0.4 gram/ton cutoff pit shell. "The base case resource uses a 45-degree pit wall, which we believe through optimization could bring additional resource blocks into the pit design, particularly near surface and along strike to the north and just below the south pit," explained Gonzalez.
Revival is led by an experienced team, including Hugh Agro as CEO and Steve Priesmeyer as vice president of exploration, and board of directors, including Diane Garrett, who sold Romarco Minerals for US$550 million, and Wayne Hubert, who sold Andean Resources for CA$3.5 billion.
With all of the above, in addition to Beartrack and Arnett Creek being in the stable jurisdiction of Idaho, Revival Gold is a potential takeout target. Gonzalez purported that senior gold producers "will soon have to replenish their project pipeline for higher-grade projects with strong production potential," and Revival could benefit.
Gonzalez pointed out that Revival experienced recent positive market traction after completing confirmatory drilling at Beartrack in January 2018 and subsequently releasing the NI 43-101 resource estimate for the project. Since then, the stock closed at CA$0.94 per share two times. "We believe the company's increasing market visibility and exploration catalysts will continue to bode well for the shares," Gonzalez said.
Those near-term catalysts include 2018 drill results from Beartrack in H2/18, metallurgical test results from Beartrack in Q4/18 and start of drilling at Arnett Creek once permits are received, expected in H2/18.
Echelon has a Speculative Buy rating and a CA$1.70 per share price target on Revival Gold, whose stock is currently trading at around CA$0.87 per share.
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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, Revival Gold Inc., July 9, 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, Garbriel Gonzalez, 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.
Is this an issuer related or industry related publication? Issuer.
Does the Analyst or any member of the Analyst’s household have a financial interest in the securities of the subject issuer? No
Does the Analyst or household member serve as a Director or Officer or Advisory Board Member of the issuer? No
Does Echelon Wealth Partners Inc. or the Analyst have any actual material conflicts of interest with the issuer? No
Does Echelon Wealth Partners Inc. and/or one or more entities affiliated with Echelon Wealth Partners Inc. beneficially own common shares (or any other class of common equity securities) of this issuer which constitutes more than 1% of the presently issued and outstanding shares of the issuer? No
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
Has the Analyst had an onsite visit with the Issuer within the last 12 months? Yes [12/6/18-14/6/18: Beartrack-Arnett Creek (Idaho) Deposit, Core Shack, Plant. Transport from Denver, and local incidentals paid by issuer.]
Has the Analyst or any Partner, Director or Officer been compensated for travel expenses incurred as a result of an onsite visit with the Issuer within the last 12 months? No
Has the Analyst received any compensation from the subject company in the past 12 months? No
Is Echelon Wealth Partners Inc. a market maker in the issuer’s securities at the date of this report? No