In a research note dated Aug. 20, analyst Andrew Kaip with BMO Capital Markets reported that Sabina Gold & Silver Corp. (SBB:TSX; RXC:FSE; SGSVF:OTCPK) made a new high-grade gold discovery at its Back River gold project and reported results from a single hole there. "We usually don't comment on single hole releases, but the broad intercept of above-average grade from the newly identified Nuvuyak target is worthy of mention," Kaip added.
Hole 18GSE545 intersected 11.58 grams per ton gold over 39.5 meters (39.5m), noted Kaip. "Sabina indicated there was abundant visible gold."
The new discovery is called the Nuvuyak gold zone. It is located about 850m along strike to the west of Goose, the main deposit, and about 1,000m down plunge. It remains open in all directions. "Geologically, the Nuvuyak gold zone looks to have the right combination of controls that host other zones like the Umwelt Vault zone," Kaip indicated.
Based on these exploration results, the minerals exploration company expanded its summer drill program to encompass an additional 2,000m.
BMO has an Outperform rating and a CA$3 per share target price on Sabina. The stock is trading at around CA$1.44 per share.
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Disclosures from BMO Capital Markets, Sabina Gold & Silver, August 20, 2018
Analyst's Certification: I, Andrew Kaip, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.
Analysts who prepared this report are compensated based upon (among other factors) the overall profitability of BMO Capital Markets and their affiliates, which includes the overall profitability of investment banking services. Compensation for research is based on effectiveness in generating new ideas and in communication of ideas to clients, performance of recommendations, accuracy of earnings estimates, and service to clients.
Analysts employed by BMO Nesbitt Burns Inc. and/or BMO Capital Markets Limited are not registered as research analysts with FINRA. These analysts may not be associated persons of BMO Capital Markets Corp. and therefore may not be subject to the FINRA Rule 2241 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.
Company Specific Disclosures
Disclosure 2: BMO Capital Markets has provided investment banking services with respect to Sabina Gold & Silver within the past 12 months.
Disclosure 4: BMO Capital Markets or an affiliate has received compensation for investment banking services from Sabina Gold & Silver within the past 12 months.
Disclosure 6A: Sabina Gold & Silver is a client (or was a client) of BMO Nesbitt Burns Inc., BMO Capital Markets Corp., BMO Capital Markets Limited or an affiliate within the past 12 months: A) Investment Banking Services
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