Precious metals analysts Stephen Soock, P. Eng., CFA and Myles Wilson of Stifel Nicolaus Canada Inc. stated in a February 10 research report that Yukon gold explorer White Gold Corp. (WGO:TSX.V; WHGOF:OTCQX; 29W:FRA) just released several additional high-grade assay results from its Ulli's Ridge target. Ulli's Ridge is located 3 km west of the company's flagship Golden Saddle and Arc deposits and immediately south of its Ryan's Surprise target. The analysts commented that the results outlined in the announcement are expected to "move the needle for the White Gold property" and positively impact the price of the stock.
The analysts advised that White Gold commenced its maiden diamond drilling program at Ulli's Ridge last November. Stifel Nicolaus Canada wrote that the drilling team employed the use of a downhole televiewer to gain spatially oriented structural information that aided in the discovery of two separate gold-bearing structures that dip downward and are targeted for follow-up drilling this year.
On February 10, 2022, White Gold Corp released results from exploration diamond drilling at its Ulli's Ridge target. The assay results were quite favorable and included 19.5 m of 6.94 g/t Au, which included 1.5 m of 39.1 g/t Au; 18.5 m of 1.36 g/t Au, including one segment of 3.5 m of 5.2 g/t Au; and 1.7 m of 4.6 g/t Au. The analysts advised that the highest grade hit from these drilling results came from the area where the two newly identified structural sets intersected.
The report from Stifel Canada mentioned that White Gold successfully raised CA$9 million from one of its strategic investors via a private placement near the end of 2021. This added capital is more than sufficient to fund the company's 2022 drill programs.
The analysts remarked that, "This new discovery at Ulli's could help bring the resource base in and around Golden Saddle up to the 2 Moz mark we think is necessary for the project to be spun out and acquired." The research firm noted that the sale of the Golden Saddle/Arc deposits would create a major positive catalyst for the company.
The analysts stated that as drilling continues, and targets are advanced at its Betty, Sabotage, Titan, Vertigo and other targets and additional discoveries are made this will likely trigger an upward re-rating for White Gold's stock.
White Gold is a gold-focused exploration firm operating in the historic White Gold district south of Dawson City, Yukon. The company is a "prospect generator" that seeks to find new gold discoveries and advance the newly found targets to a point where they can either be spun out or sold to mine developers and producers.
Stifel Nicolaus Canada Inc. stated that it is maintaining its "Buy" rating and CA$2.70 per share target price for White Gold Corp. The research firm explained that it arrived at its valuation based upon a 1.35 Moz Au mineable base at White Gold's Golden Saddle/ARC property along with an added insitu valuation for other potential discoveries across the rest of its vast land package.
The firm's shares trade under the symbol "WGO" on the TSX Venture Exchange and last closed for trading at CA$0.68/share on Friday, February 11, 2022.
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Disclosures Stifel, White Gold Corp., Jan. 2022
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.
White Gold is provided with investment banking services by Stifel Canada or an affiliate or was provided with investment banking services by Stifel Canada or an affiliate within the past 12 months.
Stifel Canada or an affiliate has received compensation for investment banking services from White Gold in the past 12 months.
Stifel Canada or an affiliate expects to receive or intends to seek compensation for investment banking services from White Gold in the next 3 months.
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