Atrium Research analysts Ben Pirie and Nicholas Cortellucci, in a research report published on August 13, 2024, provided an update on Endurance Gold Corp (EDG:TSX.V) following the company's announcement of progress on its 10,000m diamond drill program at the Reliance Gold Project. The analysts maintained their Buy rating and target price of CA$0.50 on the stock.
Endurance Gold reported completing five diamond drill holes totaling 1,854m as part of its ongoing 2024 drill program.
The analysts noted, "Assays are expected to start rolling in late August or early September." They added, "To date, the five holes completed since early July combine for a total of 1,854m drilled. The holes are aimed at targeting the zone at depth with the average hole being ~370m in length, testing the northwestern extension of the Royal Shear."
Pirie and Cortellucci highlighted the expansion of the Imperial Zone, stating, "These holes have expanded the Imperial Zone at depth and to the northwest by ~100m, growing the zone materially."
They expressed optimism about the upcoming results, commenting, "We remind readers of the consistently stellar drill results EDG has reported over its history, and we expect these high-grade results to continue in this program."
The analysts also noted ongoing work to refine the geological model for an inaugural mineral resource estimate and additional exploration activities at the Olympic Target area and Upper Eagle area.
Endurance Gold's strategic focus includes advancing the Reliance Gold Project towards resource definition while continuing exploration to expand known mineralization and identify new targets. The company recently closed a CA$4.0 million private placement, with Director Richard Gilliam subscribing for the entire offering.
Pirie and Cortellucci highlighted recent insider buying, noting, "CEO Robert Boyd continues to buy on the open market with 60,000 shares totaling $8,475 being bought in 2024. This is in addition to the ~187,000 shares he bought in H2/23." They added, "We believe this speaks to management's confidence in the project and the big discount the shares are currently trading at."
Atrium Research's valuation methodology for Endurance Gold is not explicitly stated in the provided excerpt. However, the analysts maintain a target price of CA$0.50 per share, representing a potential return of 257% from the price at the time of the report of CA$0.14.
With a Buy rating and a target price of CA$0.50, Atrium Research sees significant upside potential for Endurance Gold. The analysts conclude, "The pending news flow should act as a catalyst to reignite this tightly held stock."
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Disclosures for Atrium Research, Endurance Gold Corp., August 13, 2024
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