According to a press release from Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCMKTS; LLJA:FSE), the company has received the drill results from its efforts on the La Romanera deposit on the company's Iberian Belt West (IBW) property. The results are from drill holes LR154 and LR155, Emerita said.
The press release reports that LR154 returned 0.5% copper (Cu), 0.6% lead (Pb), 1.5% zinc (Zn), 1.49 g/t gold (Au), and 25.5 g/t silver (Ag) over 27.6m at a depth of 680.0, including 0.8% Cu, 1.6% Pb, 3.9% Zn, 2.82 g/t Au, and 52.0 g/t Ag over 6.3m. It reported that LR155 returned 0.2% Cu, 0.5% Pb, 1.3% Zn, 0.34 g/t Au, and 19.5 g/t Ag over 17.2m at a depth of 782.7, including 0.2% Cu, 1.5% Pb, 4.7% Zn, 0.60 g/t Au, and 57.0 g/t Ag over 4.0m.
The other drill holes, LR156, LR157, and LR158, intersected massive sulfides with assays pending.
Gold on the Rise as Global Uncertainty Grows
Gold has seen some gains recently as a result of the uncertainty created by the Israel-Hamas war, according to a report by Stockhead.
Stockhead observed that the price of gold had risen by 0.7% over the weekend to US$1863.36 per ounce, and that gold is still hot on the Chinese market due to a weakening Yuan.
According to Stockhead, the Chinese government has also been an important factor in gold's success, as it has sought to import the commodity to ease deficits in the country's supply.
1,003% Return for Investors
In June of 2023, a Clarus Securities report rated the company as a "Speculative Buy" and named a target price of CA$3.75 for the company, which, compared to its current price of CA$0.34, could represent a return of 1,003% for investors. The report cited the mineralization of the company's properties at the I.B.W. project as one of the driving factors of its positive ratings on the company.
A Research Capital Corp. report from December of 2022 also rated the company as a "Speculative Buy." The report noted that the company's target price was only CA$1.20, significantly lower than its target price would be in June of this year.
In August, Technical Analyst Clive Maund included the company in a list of "8 Stocks That are Rated Immediate Buys Here." Maund noted that "the confluence of moving averages and strong accumulation line suggest that it is about ready to begin another upleg."
Emerita has a number of catalysts to report, according to its investor presentation, including pending drill results from La Romanera and El Cura, metallurgical studies that are to be a part of an economic study on the I.B.W. and plans to begin exploration on Nuevo Tintillo at the end of the year.
Ownership and Share Structure
Streetwise Ownership Overview*
Emerita provided a breakdown of its ownership and share structure, where management and insiders own 5.80% of the company.
According to Reuters, Chairman Michael Lawrence Guy owns 1.90% of the company with 4.32 million shares, CEO and director David Patrick Gower owns 1.22% of the company with 2.76 million shares, President and director Joaquin Merino-Marquez owns 0.92% of the company with 2.09 million shares, director Catherine Stretch owns 0.70% of the company with 1.60 million shares, director Marilia Bento owns 0.44% of the company with 1.00 million shares, CFO Gregory Duras owns 0.29% of the company with 0.65 million shares, Corporate Secretary Damian J.D. Lopez owns 0.20% of the company with 0.46 million shares, Executive Vice President Ian T. Parkinson owns 0.11% of the company with 0.25 million shares, and director Michael Jones owns 0.02% of the company with 0.05 million shares.
Institutions own 10.47% of the company, as Eric Sprott owns 9.11% of the company with 20.72 million shares, Merk Investments LLC owns 1.21% of the company with 2.75 million shares, Palos Management Inc. owns 0.09% with 0.20 million shares, and Timelo Investment Management Inc. owns 0.06% with 0.14 million shares.
There are 227.32 million shares outstanding and 214.13 million free-float traded shares. According to Reuters, the company has a market cap of CA$76.15 million and trades in the 52-week period between CA$0.32 and CA$1.24.
|Want to be the first to know about interesting Gold and Silver investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter.||Subscribe|
- 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.
- Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
For additional disclosures, please click here.