released the final results of 2023 drilling at Harry and Cantoo, both among its Hyder properties in Alaska, reported Red Cloud Securities analyst Taylor Combaluzier in a January 22 research note.
"The company has made good progress and has likely improved its understanding of the geology at Harry," Combaluzier wrote. "Similarly, at Cantoo, the company has armed itself with a better understanding of the geology."
293% Return Implied
Based on the news, Red Cloud maintained its CA$0.55 per share target price on the Canadian precious and base metals explorer, now trading at about CA$0.14 per share, noted Combaluzier.
The difference between the current and target prices signifies a compelling return of 293%.
Blackwolf remains a Buy.
"Positive exploration results and/or a discovery could potentially help drive the stock price higher," Combaluzier commented.
Alteration, Mineralization Noted
Combaluzier reviewed the new drill results of four holes Blackwolf drilled at Harry and three holes placed at Cantoo.
At Harry, the analyst noted, the new data are "not as impressive" as those of the very first hole. However, they reveal two new zones of high-grade mineralization.
One zone, identified with hole H23-018, contains high-grade gold-silver veins with quartz-sericite-pyrite (QSP) alteration. Notable mineralized intercepts were 1.3 grams per ton gold (1.3 g/t Au) and 2.9 g/t silver (Ag), over 2 meters (2m).
The other zone, noted via hole H23-012, contains high-grade silver and base metal veins showing 374 g/t Ag, 5.34% lead, and 1.41% zinc over 0.47m. These veins are part of a 150m mineralized trend of 0.3−3m-wide sheeted veins at Swann.
As for the results of surface samples, they showed the presence of silver and base metals over a trend spanning 3 kilometers. Also seen were two areas of QSP alteration resembling what was previously seen in the Swann zone where the drill bit encountered these intercepts: 312 g/t Au and 101 g/t Ag over 1m.
At Cantoo, Combaluzier reported, the maiden drill program identified a zone of alteration resembling the porphyry intrusion at Premier Gold's nearby mine. From Cantoo hole CT23-003, the standout intercepts were 1.53 g/t Au and 1.01 g/t Au, both over 1.5m. These data should help Blackwolf select targets to be drilled next.
"More drilling to the southwest is required to potentially vector into higher-grade shoots," noted Combaluzier.
The analyst pinpointed events this year that could boost Blackwolf's share price.
At Harry, the mining company intends to drill the various targets it identified through surface sampling, Combaluzier reported. These include the Golden Summit prospect and the alteration haloes at the Harry and Ursula prospects. The company plans to also drill three zones of veins containing silver and base metals, including the Sheeted Vein and Saw Cut prospects.
Blackwolf also intends to drill further at Cantoo.
"With a healthy treasury and a fully funded 2024 drill program, we believe Blackwolf is poised to hit the ground running in the next field season," Combaluzier wrote.
Another catalyst, expected in Q1/24, is the completion and results of Phase 2 processing studies, to be conducted with the company's memorandum of understanding partners pertaining to a potential polymetallic mill at Kitsault.
|Want to be the first to know about interesting Base Metals, Silver and Gold investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter.
- [Blackwolf Copper & Gold Ltd.] is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of [Blackwolf Copper & Gold Ltd.].
- [Doresa Banning] wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
For additional disclosures, please click here.
Disclosures for Red Cloud Securities, Blackwolf Copper & Gold Ltd., January 22, 2024
Red Cloud Securities Inc. is registered as an Investment Dealer and is a member of the Investment Industry Organization of Canada (IIROC). Part of Red Cloud Securities Inc.'s business is to connect mining companies with suitable investors. Red Cloud Securities Inc., its affiliates and their respective officers, directors, representatives, researchers and members of their families may hold positions in the companies mentioned in this document and may buy and/or sell their securities. Additionally, Red Cloud Securities Inc. may have provided in the past, and may provide in the future, certain advisory or corporate finance services and receive financial and other incentives from issuers as consideration for the provision of such services.
Red Cloud Securities Inc. has prepared this document for general information purposes only. This document should not be considered a solicitation to purchase or sell securities or a recommendation to buy or sell securities. The information provided has been derived from sources believed to be accurate but cannot be guaranteed. This document does not take into account the particular investment objectives, financial situations, or needs of individual recipients and other issues (e.g. prohibitions to investments due to law, jurisdiction issues, etc.) which may exist for certain persons. Recipients should rely on their own investigations and take their own professional advice before investment. Red Cloud Securities Inc. will not treat recipients of this document as clients by virtue of having viewed this document.
Red Cloud Securities Inc. takes no responsibility for any errors or omissions contained herein, and accepts no legal responsibility for any errors or omissions contained herein, and accepts no legal responsibility from any losses resulting from investment decisions based on the content of this report.
Company Specific Disclosure Details
- The analyst has visited the head/principal office of the issuer or has viewed its material operations.
- The issuer paid for or reimbursed the analyst for a portion, or all of the travel expense associated with a visit. Date Rating Target Status % 2022-11-14 NA NA BUY 71% 2023-01-18 NA NA BUY (S) 24% 2023-02-17 NA NA HOLD 0% 2023-03-06 NA NA TENDER 1% 2023-06-07 BUY 0.70 NA 4% 2023-09-05 BUY 0.55 UNDER REVIEW 0% 2023-09-06 BUY 0.55 2023-09-28 BUY 0.55 2023-10-04 BUY 0.55 2023-10-31 BUY 0.55 2023-11-10 BUY 0.55 Recommendation / Target Change Red Cloud Securities has this percentage of its universe assigned as the following: January 22, 2024 Final Assays From Harry and Cantoo a Technical Success 5 Taylor Combaluzier, P.Geo. | VP, Mining Analyst [email protected]
- In the last 12 months preceding the date of issuance of the research report or recommendation, Red Cloud Securities Inc. has performed investment banking services for the issuer.
Dissemination Red Cloud Securities Inc. distributes its research products simultaneously, via email, to its authorized client base. All research is then available on www.redcloudsecurities.com via login and password.
Analyst Certification Any Red Cloud Securities Inc. research analyst named on this report hereby certifies that the recommendations and/or opinions expressed herein accurately reflect such research analyst’s personal views about the companies and securities that are the subject of this report. In addition, no part of any research analyst’s compensation is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.