Blackwolf Copper & Gold Ltd.'s (BWCG:TSX.V) exploration-stage properties are highly prospective, based on their location and results of historic and recent grab sampling and drilling, reported Taylor Combaluzier, Red Cloud Securities analyst, in a Sept. 28 research note following a site visit.
"We came away from our visit with a new appreciation for the untapped potential of Blackwolf's projects, along with a better grasp of their connection to prolific past and current mining operations in the Golden Triangle," Combaluzier wrote.
During the excursion, led by Blackwolf's executive chairman Robert McLeod, Red Cloud saw the Hyder properties (Texas Creek, Cantoo, Rooster, Mineral Hill and Casey), by helicopter and set down at the Harry project. All of these are near Hyder, Alaska, and Stewart, British Columbia (B.C.).
Impressive potential return
Subsequently, the financial services firm reiterated its CA$0.55 per share target price on the Canadian mineral explorer-developer, currently trading at about CA$0.23 per share, Combaluzier noted. The difference between these two prices reflects a significant potential return for investors, of 139%.
'"Successful exploration at Cantoo and Harry could potentially help drive the stock price higher," the analyst purported.
Blackwolf remains a Buy.
Location, location, location
In this report, Combaluzier presented the key takeaways from the site visit.
The location alone of Blackwolf's properties suggests they could be rife with mineralization given they are on the Alaskan side of the Golden Triangle, the Canadian side of which is a prolific historic mining district, purported Combaluzier. The latter is home to numerous mines, including Castle Resources' Granduc, Scottie Resources' Scottie and Ascot's Premier. The Alaskan side is mostly underexplored, its potential "largely untapped."
On recent drilling at Cantoo, Blackwolf encountered mineralization consistent with a porphyry system, and assays are pending, Combaluzier relayed. Because of Cantoo's proximity to the Premier mine, Cantoo may be part of Premier's mineralized system. The mineralization at Cantoo may be a telescoping porphyry feeder of the high-grade Premier-Big Missouri system that is geologically similar to Seabridge Gold's KSM-Snowfield.
Combaluzier indicated that Blackwolf plans to concentrate on advancing its Hyder properties, putting its Niblack copper-gold-zinc project on hold until copper prices increase.
Poised for growth
In the Alaskan side of the Golden Triangle, melting glacial ice continues to expose untested areas, wrote Combaluzier, and Blackwolf is well-positioned to capitalized on them. For instance, the management team has extensive knowledge about the local geography, an advantage when it comes to making discoveries.
Good prospects at Harry
At Blackwolf's Harry project, comprised of three contiguous claims, sulphide mineralization, specifically sphalerite, galena, chalcopyrite, copper oxides, gold and pyrite, was visible, added Combaluzier. Based on this, plus the fact mineralization was shown historically, Red Cloud believes results of recent, initial drilling at Harry will be positive.
Combaluzier pointed out that historic grab sampling in Harry's Swan zone returned high-grade precious metals, for example, up to 285.4 grams per ton gold (285.4 g/t Au) and 1,872 g/t silver (Ag). Similarly, recent drilling at the project encountered intercepts, including 1,833 g/t silver equivalent (Ag eq) over 9.26 meters (9.26m) and 1,437 g/t Ag eq over 15.64m. To date, 12 mineralized zones have been identified at the project.
What to watch for
Blackwolf has events expected this year that could move up its stock price. They include release of drill results from Cantoo and from Harry. Also anticipated are results of processing studies being done regarding a potential processing facility in Kitsault, B.C.
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