Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCMKTS; LLJ:FSE) plans an extensive drill program at its Romanera project this year as part of its shift away from concentrating on Infanta, reported Research Capital Corp. analyst Adam Schatzker in a May 17 research note.
"It is no surprise to us that Emerita is turning its focus to Romanera as it presents as a much larger target with greater upside," Schatzker wrote. "We view this as a positive development for the company."
At Romanera, Emerita intends to drill 70,000 meters (70,000m) with six rigs and already has the necessary permits to do so, relayed Schatzker. With this work, the Canadian mining firm aims to supplement the 51 holes drilled in the 1960s and 1990s by other operators and delineate the deposit beyond the previously determined size.
This seems doable since Romanera, the largest known target on the Iberia Belt West project in Spain, remains open along strike and downdip, Schatzker noted. Also, historical work determined its strike length to be about 450 meters (450m), but recent electromagnetic surveys indicate potential for it to be 1.2 kilometers (1.2km).
The current Romanera resource, calculated from historical drill results, contains 34,000,000 tons (34 Mt) of 0.42% copper, 2.2% lead, 2.3% zinc, 44.4 grams per ton (44.4 g/t) silver and 0.8 g/t gold. A higher grade resource exists within that: 11.21 Mt of 0.4% copper, 2.47% lead, 5.5% zinc, 64 g/t silver and 1 g/t gold.
"The potential at Romanera appears to be for a much larger deposit than Infanta, but we caution investors that the results will likely be of lower grade than Infanta but likely wider widths," wrote Schatzker.
Emerita plans to use the historical and new drill data to update Romanera's mineral resource estimate and continue advancing the project toward a production decision.
Research Capital Corp. maintains its Speculative Buy rating and CA$4 per share price target on Emerita. Its current share price is around CA$1.50.
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