In a Nov. 1 research note, Stifel analyst Stephen Soock reported that
drill results from White Gold Corp.'s (WGO:TSX.V; WHGOF:OTCQX; 29W:FRA) Ulli's Ridge "returned strong grades over good width at shallow depths (greater than 100 meters [100m]) over 500m of strike."
"We think this could be the proximal deposit needed to get the area to greater than 2,000,000 ounces (2 Moz) and be an attractive carveout target for a major," Soock wrote. Ulli's Ridge is about 3 kilometers from White Gold's Golden Saddle/Arc deposit in the Yukon, the global resource of which now amounts to 1.54 Moz. White Gold aims to spin out and sell the deposits once they reach the 2 Moz mark, the analyst indicated.
Soock reviewed the new drill results, which are from 11 rotary air blast holes. Eight of the holes were drilled at Ulli's Ridge, three at Minneapolis Creek.
Those at Ulli's Ridge show that three southeast-trending structures that dip steeply host the mineralization there, and it remains open in all directions. Highlight assays include 4.67 grams per ton (4.67 g/t) gold over 6.1m, 4.43 g/t gold over 1.52m, 2.26 g/t gold over 9.14m and 1.35 g/t gold over 21.33m.
"The fact that drilling hit fairly wide zones of high grade at shallow depth bodes well for both the mineral endowment and mineability of the emerging zone," wrote Soock.
White Gold will likely conduct follow-up drilling at Ulli's Ridge in 2022 to further expand and define the deposit.
The Minneapolis Creek holes hit mineralization but the results were "lackluster," Soock noted, with grades between 0.41 g/t and 1.46 g/t and narrow widths. These subpar results are not of great concern, though, the analyst added, because White Gold's "extensive land package hosts no end of prospective targets to keep the discovery pipeline full."
Looking forward, Soock wrote that Stifel expects the stock of White Gold, which has multibagger potential, "to rerate as advanced exploration targets are drilled (including Titan, Vertigo, Betty, Sabatoge, etc.) and additional discoveries continue to be made. We also anticipate the sale of the Golden Saddle/Arc to be a major positive catalyst."
Stifel has a Buy rating and a CA$2.70 per share target price on White Gold, the current share price of which is about CA$0.50.
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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Important Disclosures and Certifications From Stifel Canada, White Gold Corp.
I, Stephen Soock, certify that the views expressed in this research report accurately reflect my personal views about the subject securities or issuers; and I, Stephen Soock, certify that no part of my compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in this research report. White Gold is a client of Stifel Canada or an affiliate or was a client of Stifel Canada or an affiliate within the past 12 months.
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