Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCMKTS; LLJ:FSE) reported additional positive drill results from its Romanera and La Infanta base metal deposits in Spain, reported Clarus Securities analyst Varun Arora in an August 4, 2022 research note.
"Overall, we are encouraged by the drill results that continue to expand both Romanera and La Infanta, which may support significantly expanding the resource at [the] Iberian Belt West towards +30,000,000 tons with continued expansion drilling success versus our currently modelled ~21,000,000 tons," Arora wrote and reviewed the drill results from both deposits.
Drilling at Romanera, noted Arora, "continues to return strongly economic results (up to US$477 per ton in situ value included in LR005) with wide and high grade intercepts."
LR005, one of the two holes reported, cut both the upper and lower lenses. In the upper lens, it returned 16.4% zinc equivalent (Zn eq) or 8.47 grams per ton gold equivalent (8.47 g/t Au eq) over 7 meters (7m) from 117m downhole. In the lower lens, LR005 demonstrated 13.5% Zn eq or 6.97 g/t Au eq over 16.9m.
Initial stepout drilling at Romanera, consisting of hole LR007 placed 100m east of historical drilling, showed the mineralization continues in that direction. The returned widths and grades of the intercepts there, though, do not stand out. A significant intercept was 6.4% Zn eq (with 3.7% copper) over 7m from 547m downhole.
"It's possible that the mineralization pinches and swells, and so it's possible we will see wider and higher grade intercepts with continued drilling outside the historic footprint," Arora wrote, adding that the deposit remains open along strike and at depth.
Adam Schatzker, analyst at Research Capital Corp., also commented on the new drill results from both Emerita deposits, in an Aug. 4 report.
He noted the Romanera results confirm but exceed the historical figures, given the new gold and silver values are better than expected.
"Romanera is developing well for its stage of exploration," wrote Schatzker.
Results from La Infanta, on the other hand, Schatzker indicated, were "mixed with some narrow, high-grade hits and a small number of wider high-grade intercepts." He added that La Infanta is "losing momentum" and he expects Emerita to cut back on its exploration work there.
Clarus Securities and Research Capital rate Emerita Speculative Buy. As for price targets on the natural resource company, Clarus' is CA$5 per share, Research Capital's is CA$4. In comparison, Emerita is currently trading at CA$1.03 per share.
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