Roth MKM analyst Mike Niehuser, in a research report published on July 26, 2024, provided an update on Nevada King Gold Corp. (NKGFF:OTCMKTS; NKG:YSX) following the company's application of geophysical surveys at its Atlanta Gold Project. The analyst maintained a Buy rating and a 12-month price target of CA$0.65 on the stock.
Niehuser highlighted the significance of the geophysical surveys, stating, "We believe that NKG's application of geophysical surveys has effectively turned the pieces of the Atlanta Gold Project puzzle right-side-up, revealing its district-wide potential." The analyst noted that the surveys "validated drilling immediately to the west and to the east and exposed additional large targets farther east and west."
Key points from the report include:
1. The CSAMT survey's effectiveness in differentiating between mineralized and barren rock, particularly in identifying gold mineralization in intrusive dikes and surrounding decalcified wall rock.
2. The discovery of the East Ridge Target (ERT), a blind discovery of oxidized gold east of the Atlanta open pit.
3. Identification of the Jumbo Target, a large low resistivity area southeast of the resource and ERT.
4. Potential for a porphyry-related gold deposit at the West Knolls Target (WKT) and high-grade mineralization at the Quartzite Ridge Target (QRT).
Niehuser emphasized the significance of recent drilling results, noting, "Hole AT24HG-41 intercepted the most consistent, high-grade intrusive hosted mineralization to date. Hole AT24HG-41 graded 5.14 grams per tonne (g/t) gold over 68.6m from 147.8m."
Nevada King Gold's strategic focus on expanding and understanding the entire Indian Peak Caldera demonstrates the company's commitment to unlocking the full potential of the Atlanta Gold Project. The ongoing exploration activities and geophysical surveys position the company for potential significant resource expansion.
Roth MKM's valuation methodology for Nevada King Gold is not explicitly stated in the provided excerpt. However, Niehuser notes, "In our opinion, the potential of the QRT may eclipse our resource assumptions in our valuation estimate."
With a Buy rating and a price target of CA$0.65, representing a potential return of approximately 81% from the price at the time of the report of CA$0.36, Roth MKM sees significant upside potential for Nevada King Gold.
Niehuser concluded, "In our opinion, hole AT24HG-41, as interpreted, has the potential to clearly show NKG to be a likely acquisition target by a major mining company."
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Disclosures for Roth MKM, Nevada King Gold Corp., July 26, 2024
Regulation Analyst Certification ("Reg AC"): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. 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.
Disclosures: Shares of Nevada King Gold Corp. may be subject to the Securities and Exchange Commission's Penny Stock Rules, which may set forth sales practice requirements for certain low-priced securities.
ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months. The material, information and facts discussed in this report other than the information regarding ROTH Capital Partners, LLC and its affiliates, are from sources believed to be reliable, but are in no way guaranteed to be complete or accurate. This report should not be used as a complete analysis of the company, industry or security discussed in the report. Additional information is available upon request. This is not, however, an offer or solicitation of the securities discussed. Any opinions or estimates in this report are subject to change without notice. An investment in the stock may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Additionally, an investment in the stock may involve a high degree of risk and may not be suitable for all investors. No part of this report may be reproduced in any form without the express written permission of ROTH. Copyright 2024. Member: FINRA/SIPC.
