With final 2024 drill results in, Thesis Gold Inc. (TAU:TSXV; THSGF:OTCQX; A3EP87:WKN) is concluding its 2024 exploration program at its Lawyers-Ranch project in British Columbia and shifting focus to delivering a feasibility study in H2/25, reported Ventum Capital Markets Analyst Phil Ker in a Feb. 18 research note.
"Given the company's impressive roughly 4,700,000 ounces (4.7 Moz) Au eq resource base and ongoing success through the drill bit, we reiterate our Buy rating and CA$1.80 price target," Ker wrote.
Undervaluation, 125% Uplift
The analyst noted that Thesis Gold is trading now at about CA$0.80 per share, at a price:net asset value (P:NAV) of 0.12x. This is significantly below the 0.26x average P:NAV of its peers (other gold developers under Ventum's coverage).
The return to target from Thesis Gold's current share price is 125%.
"With a reducing pool of greater than 5 Moz Au eq projects in Canada on the path to development, we continue to see deep value in Thesis Gold," commented Ker.
The Canadian gold company has 212.8 million shares outstanding. Its market cap is CA$169 million. Its 52-week high and low share price are CA$1 and CA$0.37.
The Latest Highlights
Ker presented the highlight intercepts of Thesis Gold's newly reported, positive Ranch drill results from 2024 and explained their significance.
The standouts included:
- 27.5 meters (27.5m) of 2.08 grams per ton gold equivalent (2.08 g/t Au eq)
- 40.5m of 1.20 g/t Au eq
- 9.92m of 2.74 g/t Au eq
- 0.7m of 48.86 g/t Au eq
Two Objectives Met
In total last year, Thesis Gold drilled 2,666m at the Ranch area of the project, after updating a previous preliminary economic assessment of Lawyers Ranch, Ker relayed. With this exploration program, the company aimed to further baseline studies, and delineate and extend mineralization along strike and at depth. It was successful with both.
Last year's drill results indicated additional exploration upside, reported Ker. Areas for likely resource expansion were shown to include the Bingo and Thesis II zones at Ranch. Further, more regionally, the Ring and Golden Furlong zones demonstrated the potential for a new discovery.
"With a well-established structural framework and strong understanding of the Toodoggone [mining] district, the added exploration upside is showing a high probability of adding significant project value in the near term for Thesis," wrote Ker.
Also, he noted, the results of geotechnical and hydrogeological drilling provided substantial new information with which Thesis Gold may further evaluate Lawyers Ranch and flesh out the mine plan.
What is Next
Ker included in his research report what Thesis Gold plans to accomplish this year. The developer will continue working on the feasibility study of Lawyers Ranch, looking to complete it by Q4/25. This report will "fully incorporate data from the 2024 [exploration] program and offer deeper insights into the projects," Ker wrote.
Thesis Gold also will do more drilling in 2025, both to expand the project resource locally and to test high-priority regional targets.
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