Buy-Rated Base Metals Firm Releases Good Drill Results
Source: Adam Schatzker
April 17, 2023 (Investorideas.com Newswire) The Canadian company had some problems while drilling into a previously mined area, but efforts yielded some encouraging data, noted a Research Capital Corp. report.
Magna Mining Inc. (NICU:TSX.V; MGMNF:OTCMKTS) released "quite decent" drill results from its Crean Hill project in Ontario's Sudbury basin, despite encountering complications while drilling, reported Research Capital Corp. analyst Adam Schatzker in an April 11 research note.
"Overall, we think the drill results announced today are positive but also highlight the challenges of exploration drilling, especially where mining has already taken place (which often leaves large void spaces underground)," Schatzker wrote.
The Canadian base metals explorer-developer offers investors material potential gains, noted Schatzker. The difference between the current share price of the company, CA$0.96, and Research Capital's target price on it, CA$3, implies about a 212.5% return.
Magna Mining is a recommended Buy.
"We expect that there will be better results announced in the near future given the nature of the geology and historical results," wrote Schatzker.
New Data Generated
The just-released results are from the first three of the 14 holes drilled thus far this year at Crean Hill: MCR-23-011, -012, and -013. They were designed to test the 109 Footwall zone for open-pit and underground resource delineation. However, due to complications, some of the intended drill targets were missed.
Schatzker reviewed the findings with each hole, commenting that "where Magna hit, the results were good."
MCR-23-011: This hole encountered a narrow, high-grade area at 280 meters (280m) downhole. The zone returned 2.24m of 2.05% nickel (Ni), 2.98% copper (Cu), and 1.13 grams per ton platinum+palladium+gold (1.13 g/t Pt+Pd+Au).
MCR-23-012: With this hole, the drill bit stayed within diabase for longer than expected, and the target was missed.
MCR-23-013: This hole, which in part tested for near-surface, high-grade mineralization, returned a high-grade zone contained within a lower-grade one. These findings are like the ones returned with hole MCR-22-10 drilled last year.
The high-grade zone encountered with MCR-23-013 returned 2.4% Ni, 4.3% Cu, and 37.15 g/t Pt+Pd+Au over 7.1m. The lower-grade zone was much wider, spanning 95.4m, and showed 0.2% Ni, 0.6% Cu, and 11 g/t Pt+Pd+Au.
The other objective with this same hole, MCR-23-013, was to test a deeper area containing high-grade precious metals. The target was missed, however, but the drill intersected a narrow zone of 1.4% Cu over 3.4m.
"The drill did not deviate as planned and entered into historical workings before the targeted area," Schatzker explained.
More Drilling Planned
Magna intends to have additional drilling done on Crean Hill's 109 Footwall zone, testing near surface, but is mobilizing a second rig for this work. As such, this drilling will be done in about the next six to nine months. Meanwhile, the news flow is expected to continue.
1) Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with: None. Please click here for more information.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.
More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/