O3 Mining Inc. (TSXV:OIII; OTCQX:OIIIF) announced it now intends to release a completed preliminary economic assessment (PEA) of its Marban Alliance project near Val d'Or in Quebec, Canada, in Q4/24, ahead of the previously planned feasibility study (FS), reported Canaccord Genuity analyst Jeremy Hoy in an Oct. 30 research note.
"Given the time passed since the 2022 prefeasibility study (PFS), moderate inflation and the run-up in gold price, we expect to see incremental increases to costs and capex, and likely higher commodity price assumptions for resources in the PEA," Hoy wrote.
Potential gain of 254%
Canaccord Genuity reiterated its CA$4 per share price target on O3 Mining, now trading at about CA$1.13 per share, noted Hoy. From the current price, the return to target is 254%.
The Canadian explorer-developer is a Speculative Buy.
PEA in progress
Management indicated the PEA will encompass advancements at Marban Alliance made since the PFS, including optimized mining and processing parameters, as well as additional resources, Hoy reported. These additional ounces will come from conversion of resources at the current pits along with the Malartic H zone's 342,000 ounce gold resource.
The PEA and FS will showcase a standalone operation. O3 is evaluating toll milling options separately.
What to expect, watch for
Hoy presented the next steps for Marban Alliance, potential catalysts for O3 Mining.
Following completion of the PEA in Q4/24, environmental baseline studies will be finished in Q1/25. The start of impact studies will follow in Q2/25. An FS on the gold project will be done in H2/25. The impact study results will be filed in Q1/26.
Meanwhile, exploration results from Horizon and Kinebik will be released as available. Mergers and acquisitions activity is yet another potential stock-moving event.
"O3 is progressing Marban Alliance as a standalone project, but we continue to view [the company] as an important component in any Val d'Or consolidation discussion given its proximity to existing operations and other projects of scale in the region," wrote Hoy.
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