In an Oct. 22, 2018, research note, analyst Andrew Kaip with BMO Capital Markets reported that Sabina Gold & Silver Corp. (SBB:TSX; RXC:FSE; SGSVF:OTCPK) released more assays from its completed 2018 summer drill program at the Nuvuyak discovery, which "continue to compare favorably with the current underground reserve." Nuvuyak is part of Sabina's Back River gold project in Nunavut, Canada.
As for specific intercepts, drill hole 18GSE558 returned 16.39 grams per ton (16.39 g/t) over 13.2 meters (13.2m), 7.78 g/t over 12.4m and 13.32 g/t over 5.1m. Hole 18GSE553 demonstrated 8.58 g/t over 4.9m and 4.5 g/t over 4.1m gold.
In general, the results show an immediate zone extension about 130–500 meters from the discovery hole toward the Hook target, which likely connects to the Goose Main deposit.
Kaip noted that most of the current underground reserve sits in a "probable reserve of 3,471,000 tons at 7.37 g/t for contained gold of 822,000 ounces."
Further assay results, from seven additional holes drilled at Nuvuyak, are pending.
BMO has an Outperform rating and a CA$2.50 per share price target on Sabina. This reflects a projected 75% return as the company's current stock price is around CA$1.44 per share.
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Disclosures from BMO Capital Markets, Sabina Gold & Silver, October 22, 2018
IMPORTANT DISCLOSURES
Analyst's Certification
I, Andrew Kaip, hereby certify that 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.
Analysts who prepared this report are compensated based upon (among other factors) the overall profitability of BMO Capital Markets and their affiliates, which includes the overall profitability of investment banking services. Compensation for research is based on effectiveness in generating new ideas and in communication of ideas to clients, performance of recommendations, accuracy of earnings estimates, and service to clients.
Analysts employed by BMO Nesbitt Burns Inc. and/or BMO Capital Markets Limited are not registered as research analysts with FINRA. These analysts may not be associated persons of BMO Capital Markets Corp. and therefore may not be subject to the FINRA Rule 2241 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.
Company Specific Disclosures
Disclosure 2: BMO Capital Markets has provided investment banking services with respect to Sabina Gold & Silver within the past 12 months.
Disclosure 4: BMO Capital Markets or an affiliate has received compensation for investment banking services from Sabina Gold & Silver within the past 12 months.
Disclosure 6A: Sabina Gold & Silver is a client (or was a client) of BMO Nesbitt Burns Inc., BMO Capital Markets Corp., BMO Capital Markets Limited or an affiliate within the past 12 months: A) Investment Banking Services.
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