Surge Battery Metals Inc. (NILIF:OTCMKTS;NILI:TSX-V) made a deal with private landowners to drill for resources south of its current resource area, reported Roth MKM analyst Joe Reagor in an April 4 research note.
The deal was done with the Salmon River Cattlemen's Association (SRCA) that allows Surge to explore and drill four holes on SRCA's land. This land is right next to Surge's current lithium resource at the Nevada North Lithium Project (NNLP).
"We view these as highly prospective drill locations due to higher-grade intercepts in the area just to the north," Reagor wrote.
Surge also plans to drill two more holes south of this area and two more holes west of their current resource in 2024.
Reagor noted that he believes these additional holes could significantly increase the size of Surge's resource.
While Reagor stated that this news is possibly door-opening for the company, due to a less than optimistic lithium market, he would not make any change to Surge Battery's price target of CA$2.40. However, Reagor reiterated his Buy rating for the company.
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Disclosures for Roth MKM, Surge Battery Metals Inc., April 4, 2024
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