final phase two drill results from its Deer Trail project in Utah added three zones to the previous Carissa zone discovery, reported PI Financial analyst Chris Thompson in an Aug. 3 research note.
"We view today's results as positive," Thompson wrote. "Drilling continues to identify long widths of polymetallic silver-gold-copper-lead-zinc mineralization."
PI maintained its Buy rating and CA$19.15 per share target price on MAG, noted Thompson. The return to target from where the company is trading now, at about CA$14.81 per share, is attractive, at 29%.
Trio of Distinct Zones
Thompson summarized the results of phase two drilling's last three holes: DT22-11, DT22-12, and DT22-13.
"We see distinctly different mineralization styles of separate zones as hallmark indicators of a significant, long-lived, multiphase carbonate replacement deposit mineralized system," the analyst wrote.
Hole DT22-11: This hole hit the thickest, manto-style mineralization drilled at Deer Trail to date, reported Thompson, which MAG is calling the Carissita Manto discovery. The hole was placed 400–800 meters away from the Carissa zone.
Grades encountered in this hole were up to 3.1 grams per ton (3.1 g/t) over 1 meter (1m) for gold, 0.79% over 5m for copper, 10.3% for lead, and 12% for zinc, the last two over 0.95m. High silver grades, up to 156 g/t, were shown in a 3m zone of skarn at depth.
Hole DT22-12: Drilled about 800m north of the Carissa zone, this hole primarily encountered gold mineralization. It intercepted 33m of "weak manto alteration," averaging 0.6 g/t gold.
"Importantly high-grade, gold-bearing structures are beginning to be outlined, of which grade increased to 6.1 g/t gold over 1.5m," Thompson wrote.
Hole DT22-13: This hole showed multiple copper-gold zones. One highlight result was 29 g/t silver, 2.2 g/t gold, and 2.1% copper over a 4.25m width, beginning at 1,060m downhole.
"We view hole DT22-13 as particularly notable with elevated copper grades pointing toward a copper-rich intrusive porphyry center, which awaits testing," Thompson wrote.
More Drilling Planned
In fact, reported Thompson, MAG plans to target this "inferred intrusive porphyry center" with up to three holes of drilling in its upcoming phase three program. Funding for this and other exploration efforts will continue to come from the company's stake in its joint venture, producing project Juanicipio in Mexico.
"We are impressed by MAG's approach to exploration and continue to see significant future exploration upside potential unlocked by MAG's systematic exploration approach," Thompson commented.
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- MAG Silver Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
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Disclosures for PI Financial, MAG Silver Corp., August 3, 2023
Analyst Certification I, Chris Thompson, hereby certify that all of the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly related to the specific recommendations or views expressed in this report. I am the research analyst primarily responsible for preparing this report.
Research Disclosures PI Financial Corp. and/or its affiliates expect to receive or intend to seek compensation for investment banking services from the subject company.
General Disclosure The affiliates of PI Financial Corp. are PI Financial (US) Corp., PI Financial Services Corp., and PI Capital Corp. Analysts are compensated through a combined base salary and bonus payout system. The bonus payout is amongst other factors determined by revenue generated directly or indirectly from various departments including Investment Banking. Evaluation is largely on an activity-based system that includes some of the following criteria: reports generated, timeliness, performance of recommendations, knowledge of industry, quality of research and investment guidance, and client feedback. Analysts and all other Research staff are not directly compensated for specific Investment Banking transactions. None of the material, nor its content, nor any copy of it, may be altered in any way, transmitted to, copied or distributed to any other party, without the prior express written permission of PI Financial Corp. PI Financial Corp.’s policies and procedures regarding dissemination of research, stock rating and target price changes can be reviewed on our corporate website at www.pifinancial.com (Research: Research and Conflict Disclosure). The attached summarizes PI’s analysts review of the material operations of the attached company(s)