In a Jan. 8 research note, analyst Ryan Walker reported Echelon Wealth Partners again chose Pure Gold Mining Inc. (PGM:TSX.V) as a Top Pick for Q1/19, a "pivotal quarter for the company with several catalysts in the offing."
Echelon's "positive view on the company's shares reflects Madsen's high-grade nature, potential for solid near-term, high-margin production and substantial exploration potential (supported by recent Wedge drill results)," the analyst added.
Events that could impact the share price include completion of an updated resource estimate for the Madsen project, including an initial resource estimate of the satellite Wedge deposit. The latter will incorporate all assays from drilling at Wedge, Russet South, Fork and Madsen done before Sept. 1, 2018.
Results from the Wedge drilling showed increased continuity and extension of the high-grade mineralization vertically, down to more than 500 meters (500m). Two highlight holes are PG18-540, which demonstrated 354 grams per ton (354 g/t) gold over 1m (from 372.4m downhole) and PG18-564, which showed 18.3 g/t gold over 1m (192.9m) and 53.6 g/t over 1m (243.7m).
Currently, Madsen has 1.74 million ounces at 8.73 g/t of Indicated resources and 296,000 ounces at 7.89 g/t of Inferred resources.
A definitive feasibility study also is expected in Q1/19, along with a preliminary economic assessment of the Russet, Fork and Wedge satellite deposits. All of those should be followed by a production decision for Madsen.
Echelon has a Speculative Buy rating and a CA$1.20 per share price target on Pure Gold, whose stock is currently trading at around CA$0.69 per share.
[NLINSERT]Disclosure:
1) Doresa Banning compiled 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 sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
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.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
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 interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
Disclosures from Echelon Wealth Partners, Pure Gold Mining Inc., January 9, 2019
Echelon Wealth Partners compensates its Research Analysts from a variety of sources. The Research Department is a cost centre and is funded by the business activities of Echelon Wealth Partners including, Institutional Equity Sales and Trading, Retail Sales and Corporate and Investment Banking.
I, Ryan Walker, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that I have not, am not, and will not receive, directly or indirectly, compensation in exchange for expressing the specific recommendations or views in this report.
Important Disclosures:
Is this an issuer related or industry related publication? Issuer.
Does the Analyst or any member of the Analyst’s household have a financial interest in the securities of the subject issuer? No
Does the Analyst or household member serve as a Director or Officer or Advisory Board Member of the issuer? No
Does Echelon Wealth Partners Inc. or the Analyst have any actual material conflicts of interest with the issuer? No
Does Echelon Wealth Partners Inc. and/or one or more entities affiliated with Echelon Wealth Partners Inc. beneficially own common shares (or any other class of common equity securities) of this issuer which constitutes more than 1% of the presently issued and outstanding shares of the issuer? No
During the last 12 months, has Echelon Wealth Partners Inc. provided financial advice to and/or, either on its own or as a syndicate member, participated in a public offering, or private placement of securities of this issuer? Yes
During the last 12 months, has Echelon Wealth Partners Inc. received compensation for having provided investment banking or related services to this Issuer? Yes
Has the Analyst had an onsite visit with the Issuer within the last 12 months? Yes. July 31, 2018 - Madsen Mine Site – Underground and Surface Infrastructure and ancillary buildings.
Has the Analyst or any Partner, Director or Officer been compensated for travel expenses incurred as a result of an onsite visit with the Issuer within the last 12 months? No
Has the Analyst received any compensation from the subject company in the past 12 months? No
Is Echelon Wealth Partners Inc. a market maker in the issuer’s securities at the date of this report? No
