Thor Explorations Ltd. (THX:TSX.V; THXPF:OTCMKTS; THX:LSE) more than doubled the size, through drilling, of the resource at its 70%-owned Douta gold project in southeastern Senegal, reported Echelon Capital Markets analyst Ryan Walker in a March 20 research note. To reflect the increase, Echelon raised its target price on Thor.
"The impressive resource growth illustrates the potential for Douta to become Thor's second operating asset in West Africa (potentially largely funded via internal cash flow), which should help derisk the story and ultimately help close the valuation gap with peers," Walker commented.
Compelling Investment
At CA$0.30 per share today, Thor is still trading "at steep discounts to peers," noted Walker. This figure compares to Echelon's new target price on the gold explorer-developer of CA$0.75 per share, just increased from CA$0.65.
The difference between the current and target prices implies a significant, 150%, potential return for Thor investors. The company is rated Speculative Buy.
Resource Update Specifics
The analyst explained that the maiden resource estimate for Douta, prepared in 2011, comprised 730,000 ounces (730 Koz) of gold in the Inferred category.
Now, with the update, the global resource stands at 1,780,000 ounces of gold. Of this, 874.9 Koz are Indicated, and 909.4 Koz are Inferred. Areas included in the revised Douta resource are Makosa, Makosa Tail, and Sambara.
"Importantly, all of the deposits remain open along strike and downdip within a roughly 20-kilometer-long prospective corridor," wrote Walker.
The analyst noted the updated resource incorporated 64,567 meters (64,567m) of drilling and is based on a 0.5 gram per gold ton cutoff grade.
Ongoing Work at Project
As for the metallurgy of the Douta resource, Walker reported it consists of 86% sulfide mineralization. The remaining 14% is variably oxidized.
According to the results of early metallurgical testing, the oxide material may be recovered using typical gravity/carbon-in-leach methods. The sulfides may be recovered using biological or pressure oxidation; test work continues to determine the optimal process.
Also in progress is 40,000m worth of drilling at Douta, noted Walker. The objectives of this program are to convert Inferred resources to Indicated and extend known areas of mineralization along the prospective corridor.
"The drilling is in anticipation of a preliminary feasibility study later this year," Walker wrote.
| Want to be the first to know about interesting Gold investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter. | Subscribe |
Disclosures:
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.
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 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.
Disclosures for Echelon Wealth Partners, Thor Explorations Ltd., March 20, 2023
U.S. Disclosures: This research report was prepared by Echelon Wealth Partners Inc., a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. This report does not constitute an offer to sell or the solicitation of an offer to buy any of the securities discussed herein. Echelon Wealth Partners Inc. is not registered as a broker-dealer in the United States and is not be subject to U.S. rules regarding the preparation of research reports and the independence of research analysts. Any resulting transactions should be effected through a U.S. broker-dealer.
ANALYST CERTIFICATION
Company: Thor Explorations Ltd. | THX:TSXV
I, Ryan Walker, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities orissuers. 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.
