JV Partner's Spending On Asset Already 60%
Research Report

1. Bonterra Resources Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. 
2. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
3.  This article does not constitute investment advice and is not a solicitation for any 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. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

For additional disclosures, please click here.

Disclosures for Cormark Securities Inc., Bonterra Resources Inc., March 20, 2025

The analyst viewed the material operations of Bonterra Resources Inc.. During the last 12 months, CSI provided financial advice to and/or, either on its own or as a syndicate member, participated in a public offering, or private placement of securities of Bonterra Resources Inc.. During the last 12 months, the analyst of Bonterra Resources Inc. received compensation from a pool that included investment banking revenues from the subject company earned by CSI. During the last 12 months, CSI received compensation for having provided investment banking services to Bonterra Resources Inc..

This report has been prepared by Cormark Securities Inc., which is regulated by the Canadian Investment Regulatory Organization ("CIRO"). Cormark Securities Inc. and, its wholly owned affiliate, Cormark Securities (USA) Limited (collectively "CSI") are in compliance with CIRO and the Financial Industry Regulatory Authority research report rules and regulations where they apply. The firm does not receive compensation for any non-securities or non-investment banking related services. Neither the analyst nor the associate (if any), or any member of his/her household, serve as an officer, director or employee or serve in any advisory capacity of the subject company(ies) under their coverage. CSI actively solicits investment banking business, including underwriting and advisory services, from its research coverage list. As a result, although uncertain, revenue from these activities may be received at any time. All relevant disclosures required by regulatory rules (including CIRO) and Cormark's recommendation statistics and research dissemination policies can be obtained at www.cormark.com. Cormark will provide, upon request, a statement of its financial condition and a list of the names of its Directors and senior officers.

For Canadian Residents: This report has been approved by Cormark Securities Inc. (“CSI”), member CIRO and CIPF, which takes responsibility for this report and its dissemination in Canada. Canadian clients wishing to effect transactions in any security discussed should do so through a qualified salesperson of CSI. For US Residents: Cormark Securities (USA) Limited (“CUSA”), member FINRA and SIPC, accepts responsibility for this report and its dissemination in the United States. This report is intended for distribution in the United States only to certain institutional investors. US clients wishing to effect transactions in any security discussed should do so through a qualified salesperson of CUSA. Any research analyst contributing to this report is not registered as a research analyst with FINRA and is not an associated person of CUSA and therefore may not be subject to FINRA Rule 2241 restrictions on communications with a subject company, public appearances, and trading securities held by a research analyst account. Every province in Canada, state in the US, and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents, as well as the process for doing so. As a result, some of the securities discussed in this report may not be available to every interested investor. This report is not, and under no circumstances, should be construed as, a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction. This material is prepared for general circulation to all clients and does not have regard to the particular circumstances or needs of any specific person who may read it. This report is provided for information purposes only and does not constitute an offer or solicitation to buy or sell any securities discussed herein. The information and any statistical data contained herein have been obtained from sources believed to be reliable as of the date of publication, but the accuracy or completeness of the information is not guaranteed, nor in providing it does CSI or CUSA assume any responsibility or liability. All opinions expressed and data provided herein are subject to change without notice. The inventories of CSI or CUSA, its affiliated companies and the holdings of their respective directors, officers and companies with which they are associated may have a long or short position or deal as principal in the securities discussed herein. A CSI or CUSA company may have acted as underwriter or initial purchaser or placement agent for a private placement of any of the securities of any company mentioned in this report, may from time to time solicit from or perform financial advisory, or other services for such company. The securities mentioned in this report may not be suitable for all types of investors; their prices, value and/or the income they produce may fluctuate and/ or be adversely affected by exchange rates. No part of any report may be reproduced in any manner without prior written permission of CSI. A full list of our disclosure statements as well as our research dissemination policies and procedures can be found on our website at: www.cormark.com

Each research analyst and research associate who authored this document hereby certifies that the recommendations and opinions expressed in the research report accurately reflect their personal views about the subject company (ies) and its (their) securities and that they have not been and will not be receiving direct or indirect compensation in exchange for expressing the specific recommendation(s) in this report.

Bonterra Resources Inc.'s (BTR:TSX.V; BONXF:OTCMKTS; 9BR:FSE) first 2024 drill results are in from the Gladiator SW target, and field and exploration programs are slated for this year, at its Phoenix JV project in Quebec's Abitibi Greenstone Belt, reported Richard Gray, Cormark Securities analyst, in a March 20 research note.

"For risk-tolerant investors looking for cheap ounces in a rising gold price environment, Bonterra remains an attractive addition to the portfolio," Gray wrote.

204% Return Potential

Bonterra was trading at the time of the report at about CA$0.23 per share and at an enterprise value per ounce of US$23/oz compared to US$48/oz, the average of developers in Cormark's coverage universe.

Cormark's target price on the Canadian explorer is CA$0.70 per share, thus implying a 204% return for investors.

Bonterra is a Buy.

New Mineralized Hole

Last year, 13 holes over 5,700 meters (5,700m) were drilled at the Gladiator SW target at the Phoenix JV project, along the Barry Shear zone. The first result from the area is from hole PHZ-24-0019. It showed 1.5m of 20.3 grams per ton gold.

JV Partner Invested

Gray reiterated Bonterra's joint venture agreement with Gold Fields Ltd. (GFI:NYSE; GFI:JSE) and highlighted the latter's progress so far.

Gold Fields may acquire a 70% interest in Phoenix JV by spending CA$30 million (CA$30M) on work there over three years. It must spend a minimum of CA$10M annually. Already, Gold Fields has spent about CA$18M on the project.

"Gold Fields has shown a material commitment to the Phoenix JV, with 60% of the total capital commitment invested in the agreement's first year," Gray pointed out.

A total of 65,000m has been drilled at Phoenix JV. A 2021 mineral resource estimate showed the Gladiator and Barry deposits together contain 2,760,000 ounces of gold.

2025 Plans Being Made

Gray relayed what is known so far about the work plan for Phoenix JV this year. A gravity airborne survey and related fieldwork are slated to be done during the summer. A roughly 15,000m drill program, using three to four diamond drill rigs, is to follow. It is likely that drilling will be concentrated on Barry Shear, Gladiator NE and Titan, but targets have yet to be finalized.

"The results of the 2025 program will be significant for the development of Barry and Gladiator as Bonterra seeks out a strategic partnership with the experienced senior producer," Gray wrote.

Stock Details

Bonterra has 166.2 million (166.2M) basic and 209.3M diluted shares outstanding. Its market cap is CA$38.2M. Its 52-week range is CA$0.19–0.34 per share.