In a Jan. 23 research note, analyst Pierre Vaillancourt reported Haywood increased its recommendation on RNC Minerals (RNX:TSX) to Buy from Hold after the release of "encouraging" initial drill results from Beta Hunt and in advance of a more comprehensive report in mid-February.
These new data from the Australian gold project are from a total of 46 drill holes, Vaillancourt explained. Twenty-seven of those, totaling 3,416 meters (3,416m) of the A zone, targeted the sediment layer and shear near the high-grade Father's Day vein discovered in fall 2018. The remaining 19 holes, covering 2,350m of the Western Flanks zone, targeted the sediment layer.
Generally, the results show that "mineralization extends along the shear zones in contact with the marker sedimentary layer within the Lunnon basaltic unit," Vaillancourt indicated.
The A zone drilling hit mineralization 7m below the Father's Day vein. The highlight intercept is 119.4 grams per ton (119.4 g/t) gold over 6.4m, including 1,406 g/t gold over 0.5m.
Drilling in the Western Flanks zone intersected 1,017 g/t gold over 2m, including 7,621 g/t gold over 0.27m, which indicates the presence of another high-grade vein. Lower-grade gold assays ranged from 4–6 g/t in basalt, suggesting the potential exists for broader, lower-grade gold mineralization similar to that in the A zone.
Vaillancourt concluded that gold mineralization could extend in both zones "for 2 kilometers or more along the shear structure in contact with the sediment layer, over a thickness of 5–20m for Western Flanks and 3–8m along the A zone."
RNC will continue its drilling efforts at Beta Hunt, now aiming to infill and expand the resources in Western Flanks and A.
Haywood has a CA$0.75 per share target price on RNC Minerals. The company is currently trading at around CA$0.63 per share.[NLINSERT]
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Disclosures from Haywood Securities, RNC Minerals, January 24, 2019
Haywood Securities, or certain of its affiliated companies, may from time to time receive a portion of commissions or other fees derived from the trading or financings conducted by other affiliated companies in the covered security. Haywood analysts are salaried employees who may receive a performance bonus that may be derived, in part, from corporate finance income.
Haywood Securities, Inc., and Haywood Securities (USA) Inc. do have officers in common however, none of those common officers affect or control the ratings given a specific issuer or which issuer will be the subject of Research coverage. In addition, the firm does maintain and enforce written policies and procedures reasonably designed to prevent influence on the activities of affiliated analysts.
Analyst Certification: I, Pierre Vaillancourt, hereby certify that the views expressed in this report (which includes the rating assigned to the issuer’s shares as well as the analytical substance and tone of the report) accurately reflect my/our personal views about the subject securities and the issuer. No part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendations.
Of the companies included in the report, the following Important Disclosures:
▪ Haywood Securities, Inc. has reviewed lead projects of Atlantic Gold Corporation, Roxgold Inc. RNC Minerals and a portion of the expenses for this travel have been reimbursed by the issuer.
▪ Haywood Securities, Inc. or an affiliate has managed or co-managed or participated as selling group in a public offering of securities for RNC Minerals in the last 12 months.
▪ Haywood Securities, Inc. or an affiliate has received compensation for investment banking services from RNC Minerals in the past 24 months.
Other material conflict of interest of the research analyst of which the research analyst or Haywood Securities Inc. knows or has reason to know at the time of publication or at the time of public appearance: n/a.