Silver Company Reveals Excellent Gold Find

Emerita Resources Corp (EMO:TSX.V; EMOTF:OTCMKTS; LLJA:FSE) has announced additional assay results from the La Romanera deposit on Emerita's Iberian Belt West (IBW) project. The assay results have been received for three additional drill holes that were not included in the prior National Instrument 43-101-compliant mineral resource estimate news releases.

Drill holes LR148, LR150, and LR151 have intercepted sulphide mineralization below the limit of the current mineral resource estimate, extending the mineralization at depth. The intercepts are approximately 550m to 600m below surface and span about 300m horizontally along strike.

"Many mile markers will be passed in 2023 on the way to demonstrating IBW has what it takes to be a mine."

Downhole TEM anomalies indicate that the mineralization may continue at depth for another 100m or more. The upper and lower lens at this depth appear to merge into one larger sulphide lens of up to 30m to 40m thickness. This lens is referred to as the lower lens. According to David Gower, the CEO of Emerita, "Massive sulphide mineralization continues to extend at depth at La Romanera and drill intercepts where assays are pending, as well as bore hole geophysical surveys, confirm that the sulphide mineralization continues to extend beyond the drilling completed to date. We are excited to see the intercept at El Cura as we have limited historical data for this deposit. Mineralization extends to at least 200-metre depth based on early drill results."

The highlights of the assay results are as follows:

• Drill hole LR148 intersected the lower lens at 594.0m of depth, and encountered 32.2m of grading with 0.4% Cu, 0.2% Pb, 1.0% Zn, 0.32 g/t Au, and 11.7 g/t Ag, including 9.0m of grading with 0.5% Cu, 0.4% Pb, 1.9% Zn, 0.32 g/t Au, and 20.1 g/t Ag.
• Drill hole LR150 intersected the lower lens at 575.2m of depth, and encountered 4.3m of grading with 0.4% Cu, 0.4% Pb, 1.0% Zn, 0.26 g/t Au, and 8.3 g/t Ag.
• Drill hole LR151 intersected 662.0m of depth, and encountered 42.2m of grading with 0.3% Cu, 1.0% Pb, 2.0% Zn, 2.44 g/t Au, and 70.4 g/t Ag, including 7.3m of grading with 0.3% Cu, 2.0% Pb, 2.2% Zn, 8.11 g/t Au, and 114.2 g/t Ag, and including 13.1m of grading with 0.3% Cu, 1.0% Pb, 4.0% Zn, 1.24 g/t Au, and 55.5 g/t Ag.

Additionally, the company has commenced the El Cura drilling exploration program. The program consists of 2,800m in 10 drill holes. Two drill holes have been completed, EC002 and EC003. Hole EC003 intercepted 9m of mineralization of which 5m is massive sulphide mineralization. Assays are pending for these holes and will be reported when received. According to Joaquin Merino, the President of Emerita, "The intercept in EC003 is approximately 203 metres down the hole. There is a drift that extends to about 20 metres below surface. There is no other underground working related to the discovered mineralization in hole EC003. Data suggests the zone could have a lateral extent of about 400 metres. Emerita does not have complete information on the historical work done on the El Cura deposit, so will systematically drill it and monitor the results."

The company will keep six rigs on IBW during the summer, although measures are being taken to reduce workers' exposure to high temperatures. The company expects to return to normal operations for drilling after the summer.

Headed for Another Rally

Barry Dawes of Martin Place Securities believes that gold may be heading back up to the record prices seen in March. This opinion was echoed by Richard Mills, who also sees a bull market for gold. According to Mills, "Steady demand from central banks confirms that precious metals, in particular gold, deserve investors’ attention. Earlier this year, the gold price flirted with the record-high $2,074.60, set on March 8, 2022."

Set for Growth

According to Varun Arora, the IBW is "set to deliver great news flow and likely surprise investors to the upside… many mile markers will be passed in 2023 on the way to demonstrating IBW has what it takes to be a mine."

Adam Schatzker of Research Capital Corp. also noted that even if Aznalcollar was not included in its evaluation, "Research Capital's target price on Emerita would be CA$0.90 per share, implying a return of about 50%," representing a significant return for investors.

Ownership and Share Structure

Michael Lawrence Guy owns 1.90% of the company with 4.32 million shares, David Patrick Gower owns 1.22% with 2.76 million shares, Joaquin Merino-Marquez owns 0.92% with 2.09 million shares, Catherine Stretch owns 0.70% with 1.60 million shares, Marilia Bento owns 0.44% with 1.00 million shares, Gregory Duras owns 0.29% with 0.65 million shares,  Damian J.D. Lopez owns 0.20% with 0.46 million shares, and Ian T. Parkinson owns 0.11% with 0.25 million shares.

Merk Investments LLC owns 1.21% with 2.75 million shares, and Sprott Asset Management LP owns 0.11% with 0.26 million shares. There are no strategic investors.

The company has CA$23.63 million in the bank.

Emerita reports no potential negatives.

The company does not work with any IR firms, but does work with influencers Johnny Lambo and Doc Jones. Varun Arora of Clarus Securities and Adam Schatzker of Research Capital provide news coverage and analysis of the company.

There are 227.32 million shares outstanding and 214.13 million free float traded shares. The company has a market cap of CA$61.29 million.

Important Disclosures:

1. Emerita Resources Corp is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. 
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Emerita Resources.
3. Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. T
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