Magna Mining Inc. (NICU:TSX.V; MGMNF:OTCMKTS) released "quite decent" drill results from its Crean Hill project in Ontario's Sudbury basin, despite encountering complications while drilling, reported Research Capital Corp. analyst Adam Schatzker in an April 11 research note.
"Overall, we think the drill results announced today are positive but also highlight the challenges of exploration drilling, especially where mining has already taken place (which often leaves large void spaces underground)," Schatzker wrote.
Compelling Upside
The Canadian base metals explorer-developer offers investors material potential gains, noted Schatzker. The difference between the current share price of the company, CA$0.96, and Research Capital's target price on it, CA$3, implies about a 212.5% return.
Magna Mining is a recommended Buy.
"We expect that there will be better results announced in the near future given the nature of the geology and historical results," wrote Schatzker.
New Data Generated
The just-released results are from the first three of the 14 holes drilled thus far this year at Crean Hill: MCR-23-011, -012, and -013. They were designed to test the 109 Footwall zone for open-pit and underground resource delineation. However, due to complications, some of the intended drill targets were missed.
Schatzker reviewed the findings with each hole, commenting that "where Magna hit, the results were good."
MCR-23-011: This hole encountered a narrow, high-grade area at 280 meters (280m) downhole. The zone returned 2.24m of 2.05% nickel (Ni), 2.98% copper (Cu), and 1.13 grams per ton platinum+palladium+gold (1.13 g/t Pt+Pd+Au).
MCR-23-012: With this hole, the drill bit stayed within diabase for longer than expected, and the target was missed.
MCR-23-013: This hole, which in part tested for near-surface, high-grade mineralization, returned a high-grade zone contained within a lower-grade one. These findings are like the ones returned with hole MCR-22-10 drilled last year.
The high-grade zone encountered with MCR-23-013 returned 2.4% Ni, 4.3% Cu, and 37.15 g/t Pt+Pd+Au over 7.1m. The lower-grade zone was much wider, spanning 95.4m, and showed 0.2% Ni, 0.6% Cu, and 11 g/t Pt+Pd+Au.
The other objective with this same hole, MCR-23-013, was to test a deeper area containing high-grade precious metals. The target was missed, however, but the drill intersected a narrow zone of 1.4% Cu over 3.4m.
"The drill did not deviate as planned and entered into historical workings before the targeted area," Schatzker explained.
More Drilling Planned
Magna intends to have additional drilling done on Crean Hill's 109 Footwall zone, testing near surface, but is mobilizing a second rig for this work. As such, this drilling will be done in about the next six to nine months. Meanwhile, the news flow is expected to continue.
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