Source: Streetwise Reports
November 13, 2023 (Investorideas.com Newswire) Emerita Resources Corp. has announced the assay results from its La Romanera deposit on the Iberian Belt West. Read on to see why analysts like this company's stock.
Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCMKTS; LLJA:FSE) reported in a press release that it has the assay results from the La Romanera deposit on the Iberian Belt West Project (IBW), which also hosts the La Infanta and El Cura deposits.
According to the press release, this report includes the results of two drill holes, LR156 and LR157.
The President of Emerita Resources Corp, Joaquin Merino, commented, "We continue to see a very thick massive sulfide zone at La Romanera, where drilling is expanding the deposit beyond the recently announced mineral resource estimate at IBW. Given these are some of the thickest massive sulfides we have seen to date at La Romanera, in addition to the DEHM indicating continuity to depth, we are optimistic there continues to be significant room to expand this deposit."
Emerita reports that LR156 found 0.5% copper (Cu), 0.8% lead (Pb), 1.9% zinc (Zn), 1.07 g/t gold (Au) and 38.1 g/t silver (Ag) over 24.2m at a depth of 692.4m, including 0.4% Cu, 2.8 Pb, 6.6 Zn, 1.47 g/t Au, and 75.4 g/t Ag over 5.0m. LR157 found 0.5% Cu, 1.1% Pb, 1.5% Zn, 0.46 g/t Au, and 26.1 g/t Ag over 51.6m at a depth of 721.7m, including 0.2% Cu, 1.6% Pb, 5.5% Zn, 0.98 g/t Au, and 58.8 g/t Ag over 6.0m, and 0.4% Cu, 1.8% Pb, 2.1% Zn, 0.89 g/t Au, and 38.5 g/t Ag over 5.6m.
The company is also optimistic about the potential for expansion, as "assay results indicate continuity of massive sulfides from the outcrop to nearly 700 meters below surface, along with a pronounced thickening of the sulfide mineralization."
The Independent Speculator released a guide on gold and silver grades, which stated that between 0.5 and 8.0 g/t, gold is the average grade, and between 150 and 350 g/t is the average for silver.
Gold Market on the Rise
Rick Mills of Ahead of the Herd released a report on the gold market, where he noted that the market for gold was on the rise due to intensifying global conflicts and uncertainty.
According to Mills, there is a significant gap between supply and demand for gold: "Even though major gold miners are high-grading their reserves, mining all the best gold and leaving the rest, they still didn't manage to satisfy global demand for the precious metal, not even close."
Stockhead also reported that artificial intelligence may be driving up demand for gold as a result of gold's use in computers: "The thesis there is that a boom in demand for AI applications creates a boom in demand for the chips and components that help power the tech."
Additionally, the report noted that gold is approaching record prices again at US$1,990.
349% Potential Return
Clarus Securities released a report on June 24, 2023, which rated Emerita as a "Speculative Buy" for investors, with a target price of CA$3.75 and a potential return on investment of 349%. The report highlighted the mineralization on the IBW and the company's gold recovery optimization as positive factors in its assessment, as well as the potential for further exploration along the Romanera and Infanta regions of the property.
Emerita reports a number of catalysts in its investor presentation, including the future resolution of its court case regarding the Aznalcollar project, where it expects to drill the deposits known to contain high-grade mineralization and construct additional mine infrastructure. Additionally, the investor presentation states that the company has begun drilling on the Nuevo Tintillo property and will continue drilling on the La Romanera and La Infanta projects.
Technical Analyst Clive Maund included Emerita Resources in a list of "Immediate Buys" for investors: "A Strong Buy here, and buyers should think of taking profits if it approaches the CA$0.70 area."
Lastly, the company reports that it expects results from its metallurgical study and Preliminary Economic Assessment in Q4 of this year.
Ownership and Share Structure
Reuters provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 5.80% of the company. According to Reuters, Chairman Michael Lawrence Guy owns 1.90% of the company with 4.32 million shares, CEO David Patrick Gower owns 1.22% of the company with 2.76 million shares, President Joaquin Merino-Marquez owns 0.92% of the company with 2.09 million shares, Director Catherine Stretch owns 0.70% of the company with 1.60 million shares, Director Marilia Bento owns 0.44% of the company with 1.00 million shares, CFO Gregory Duras owns 0.29% of the company with 0.65 million shares, Corporate Secretary Damian J.D. Lopez owns 0.20% of the company with 0.46 million shares, Executive Vice President Ian T. Parkinson owns 0.11% of the company with 0.25 million shares, and director Michael Jones owns 0.02% of the company with 0.05 million shares.
Institutions own 10.47% of the company, as Eric Sprott owns 9.11% of the company with 20.72 million shares, Merk Investments LLC owns 1.21% of the company with 2.75 million shares, Palos Management Inc. owns 0.09% with 0.20 million shares, and Timelo Investment Management Inc. owns 0.06% with 0.14 million shares.
According to Reuters, there are 227.32 million shares outstanding with 214.13 million free float traded shares, while the company has a market cap of CA$72.79 million and trades in the 52-week period between CA$0.26 and CA$1.24.
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