In a November 8 research note, Stephen Soock, P. Eng., CFA, a precious
metals analyst with Stifel Nicolaus Canada Inc. (Stifel GMP), advised that
Yukon-focused gold explorer White Gold Corp. (WGO:TSX.V; WHGOF:OTCQX; 29W:FRA) recently released its latest group of assay results from its 2021 exploratory drill program at the Ryan's Surprise and Ulli's Ridge targets. The report from Stifel GMP indicated that these newly discovery targets are located about 2 km west of White Gold's flagship Golden Saddle deposit.
The analyst commented that Ryan's Surprise and Ulli's Ridge feature economic-level grades thickness over a wide range and at depth which suggests that the area hosts significant mineralization that might serve to boost the level of the White property resource.
The report from White Gold mentioned that at Ryan's Surprise, it encountered structurally controlled gold mineralization over an area 400m x 400m. Testing results showed that the mineralization continued to a depth of 450m and was open along strike and down dip. White Gold highlighted that one hole drilled in this area returned 3.25 m of 10.36 g/t Au starting from a downhole depth of 190m.
Stifel GMP stated that White Gold Corp. just announced the drill results from 2,651 m of drilling across 8 diamond drill holes. The drill work was designed to test Ryan's Surprise's western strike and down dip extensions and near surface mineralization at of Ulli's Ridge's northernmost region.
Analyst Soock remarked that that the latest drill results confirm that, "Ryan's Surprise has legs."
In addition to the above-mentioned assay results, several other notable intercepts were obtained including 6.0 m of 3.66 g/t Au from a down hole depth of 78m and 15.0 m of 1.88 g/t Au from a down hole depth of 370m, which included one segment of 2.3 m of 4.83 g/t Au.
The analyst concluded that the latest drill results should offer a strong positive impact for White Gold in that they confirm what Stifel GMP suspected from the RAB drill results reported last week. Stifel stated that Ryan's Surprise and Ulli's Ridge show substantial promise of increasing White Gold's property to total global resource of greater than 2 Moz Au.
Stifel noted that the assay results from other late season diamond drill holes drilled south of Ulli's Ridge have not yet been released.
The analyst pointed out that White Gold Corp.'s shares trade very cheaply compared to its peers at a spot price to net asset value (P/NAV) of just 0.18x and added that the company is expected to steadily release additional drill results until the end of this year which will be a positive ongoing catalyst for the firm's stock.
The report pointed out that the firm controls most of the White Gold district and it has developed effective discovery techniques that start with soil sampling followed by low-cost top-of-bedrock sampling.
The analyst listed that White Gold's Golden Saddle/Arc deposit has an estimated resource of 1.5 Moz Au, which it expects together with the new discoveries will soon surpass 2 Moz. Stifel advised that it anticipates that as the total resource approaches the 2 Moz mark, the property will by spun out to an industry "major" for development.
Stifel advised that it believes that as the Saddle/Arc deposit nears the 2 Moz mark, the stock will re-rate when several other advanced exploration targets including Betty, Sabatoge, Titan, Vertigo and others are fruitful in identifying new discoveries. The analyst added that "the sale of the Golden Saddle/Arc would be a major positive catalyst."
Stifel Nicolaus Canada Inc. currently has a "Buy" rating and CA$2.70 per share price target for White Gold Corp. The company's shares trade on the TSX Venture Exchange under the symbol "WGO" and last closed for trading at CA$0.64/share on Wednesday, November 10, 2021.
Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
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Disclosures for Stifel, White Gold Corp., Nov. 8, 2021
I, Stephen Soock, certify that the views expressed in this research report accurately reflect my personal views about the subject securities or issuers; and I, Stephen Soock, certify that no part of my compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in this research report.
White Gold is a client of Stifel Canada or an affiliate or was a client of Stifel Canada or an affiliate within the past 12 months.
White Gold is provided with investment banking services by Stifel Canada or an affiliate or was provided with investment banking services by Stifel Canada or an affiliate within the past 12 months.
Stifel Canada or an affiliate has received compensation for investment banking services from White Gold in the past 12 months.
Stifel Canada or an affiliate expects to receive or intends to seek compensation for investment banking services from White Gold in the next 3 months.
The equity research analyst(s) responsible for the preparation of this report receive(s) compensation based on various factors, including Stifel's overall revenue, which includes investment banking revenue.
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