Thesis Gold Inc. (TAU:TSXV; THSGF:OTCQX; A3EP87:WKN) reported the first assays from just-completed resource definition and expansion drilling at Lawyers, part of its Lawyers-Ranch project in British Columbia, reported Phil Ker, Ventum Capital Markets analyst, in an Oct. 23 research note.
"New assays confirm near surface high-grade mineralization as well as continuity of known mineralization at depth," Ker wrote.
Potential return of 60%
Ventum maintained its CA$1.55 per share price target on the Canadian explorer, noted Ker. Thesis is trading at about CA$0.97 per share, below the group average for gold developer peers in Ventum's coverage universe. From the current price, the return to target reflects 60% upside.
"As the company continues to derisk Lawyers-Ranch through various deliverables, we see ample opportunity for a further rerating in the stock," Ker wrote.
Thesis remains a Buy.
High grades near surface, at depth
Ker discussed the recent Lawyers drill program and the new results from it.
Thesis completed 4,100 meters (4,100m) of drilling at Lawyers, targeting areas of known mineralization near surface and at depth in Cliff Creek. The company released results of eight holes.
Generally, the results showed high-grade intervals both near surface and deeper. Those near surface could help enhance the economics of the shallower horizons to be encompassed in open-pit mining. Those deeper align with expected underground mining stopes.
Some of the standout intercepts in the new data are:
- 8m of 7.29 grams per ton gold (7.29 g/t Au) and 327.75 g/t silver (Ag), or 11.39 g/t gold equivalent (Au eq), including 2m of 16.23 g/t Au and 866 g/t Ag, or 27.05 g/t Au eq, (near surface)
- 4.89m of 3.82 g/t Au and 119.76 g/t Ag, or 5.31 g/t Au eq, including 0.39m of 19.3 g/t Au and 791 g/t Ag, or 29.19 g/t Au eq, (at depth)
All drill results from the 2024 Lawyers drill program should help Thesis with resource modeling and could lead to upgrading of Inferred ounces, now accounting for 10% of the total resource. The mining company will incorporate these new data in its preliminary feasibility study (PFS) of Lawyers Ranch, to be completed in 2025.
Catalysts on the horizon
In the near term, investors can expect additional results of various work done recently at Lawyers and at Ranch, noted Ker.
Next year, along with delivering the PFS, Thesis will start working on the environmental assessment.
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