In a Jan. 8 research note, analyst Ryan Walker reported Echelon Wealth Partners again chose Pure Gold Mining Inc. (PGM:TSX.V) as a Top Pick for Q1/19, a "pivotal quarter for the company with several catalysts in the offing."
Echelon's "positive view on the company's shares reflects Madsen's high-grade nature, potential for solid near-term, high-margin production and substantial exploration potential (supported by recent Wedge drill results)," the analyst added.
Events that could impact the share price include completion of an updated resource estimate for the Madsen project, including an initial resource estimate of the satellite Wedge deposit. The latter will incorporate all assays from drilling at Wedge, Russet South, Fork and Madsen done before Sept. 1, 2018.
Results from the Wedge drilling showed increased continuity and extension of the high-grade mineralization vertically, down to more than 500 meters (500m). Two highlight holes are PG18-540, which demonstrated 354 grams per ton (354 g/t) gold over 1m (from 372.4m downhole) and PG18-564, which showed 18.3 g/t gold over 1m (192.9m) and 53.6 g/t over 1m (243.7m).
Currently, Madsen has 1.74 million ounces at 8.73 g/t of Indicated resources and 296,000 ounces at 7.89 g/t of Inferred resources.
A definitive feasibility study also is expected in Q1/19, along with a preliminary economic assessment of the Russet, Fork and Wedge satellite deposits. All of those should be followed by a production decision for Madsen.
Echelon has a Speculative Buy rating and a CA$1.20 per share price target on Pure Gold, whose stock is currently trading at around CA$0.69 per share.[NLINSERT]
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Disclosures from Echelon Wealth Partners, Pure Gold Mining Inc., January 9, 2019
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.
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? Yes
During the last 12 months, has Echelon Wealth Partners Inc. received compensation for having provided investment banking or related services to this Issuer? Yes
Has the Analyst had an onsite visit with the Issuer within the last 12 months? Yes. July 31, 2018 - Madsen Mine Site – Underground and Surface Infrastructure and ancillary buildings.
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