Blackwolf Copper & Gold Ltd.'s (BWCG:TSX.V) newly updated resource estimate at Niblack, its copper-gold-zinc-silver project in southeastern Alaska, "highlights significant potential," reported Couloir Capital in a May 24 research note.
"The updated mineral resource update at Niblack is a major milestone and establishes the project as a 400,000,000 pound copper equivalent deposit," Couloir wrote.
Attractive Return on Investment
Following the release of the new resource estimate, Couloir Capital lowered its fair value per share to CA$0.59 from CA$1.28 and maintained its Buy rating on Blackwolf.
Given it is currently trading at about CA$0.36 per share, this implies a potential return for investors of 65%.
New Resource Overview
The new Niblack resource estimate encompasses results of 2012 stepout drilling at the Trio zone and 2021 infill/stepout drilling at the Lookout zone, "thereby making it more robust" than the last one, calculated in 2011, Couloir explained.
Between 2011 and 2022, Indicated resources at Niblack increased to 5,851,000 tons (5.851 Mt) from 5.638 Mt.
The new Indicated resource boasts 0.94% copper, 1.83 grams per ton (1.83 g/t) gold, 29 g/t silver, and 1.73% zinc. This equates to 120,700,000 pounds (120.7 Mlb) of copper, 345,800 (345.8 Koz) of gold, 5,500,000 ounces of silver, and 222.6 Mlb of zinc.
Inferred resources decreased to 0.214 tons from 3,393 tons. The new Inferred resource contains 0.93% copper, 1.52 g/t gold, 18 g/t silver, and 1.38% zinc. This equates to 4.4 Mlb of copper, 10.4 Koz of gold, 125 Koz of silver, and 6.5 Mlb of zinc.
Tonnage Decrease Since 2011
The resource update shows a 4% increase in Indicated resources but a 33% drop in overall tonnage compared to the 2011 version. The latter is due to an increased cutoff of US$100 per ton from US$50 per ton that led to the lower-grade Inferred blocks being removed from the estimate.
"Despite the decrease in tonnage, we view the updated mineral resource estimate positively given higher grades of the tonnage at both Lookout and Trio zones," Couloir wrote.
At Lookout, the average copper grade of the total resource is now 0.92%, up 4% over 2011, and at the Trio zone, it is 13% higher than before.
The overall lower tonnage of the updated Niblack resource, however, was a key reason for Couloir reducing its fair value on Blackwolf. Other factors were a higher share count and lower peer group multiples.
Potential Stock Mover
In other news, Frank Giustra bought another 10 million shares of Blackwolf during the recent CA$8.5 million private placement. This takes his total stake in the company to 13.4%.
"An increase in ownership by mining billionaire Frank Giustra is a catalytic event that could rerate the stock," Couloir wrote.
Looking Ahead
Blackwolf will use the new funds to advance its exploration activities in 2023. Those include drilling the three priority targets at its Hyder properties in British Columbia's Golden Triangle, Cantoo, Solo, and Doghole, all of which returned high-grade gold and silver mineralization on 2022 surface sampling.
"With an updated resource estimate and sufficient funding, we believe Blackwolf will look to build on recent strength and maintain momentum going into the rest of 2023," Couloir commented.
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Important Disclosures:
1) Blackwolf Copper & Gold Ltd. is a billboard sponsor(s) of Streetwise Reports and has paid SWR a sponsorship fee between US$3,000 and US$5,000.
2) As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Blackwolf Copper & Gold Ltd.
3) Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for 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. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
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Disclosures for Couloir Capital, Blackwolf Copper & Gold Ltd., May 24, 2023
This report has been prepared by an analyst on contract with or employed by Couloir Capital Ltd. The analyst certifies that the views expressed in this report which include the rating assigned to the issuer’s shares as well as the analytical substance and tone of the report accurately reflect his or her personal views about the subject securities and the issuer. No part of his / her compensation was, is, or will be directly or indirectly related to the specific recommendations. Couloir Capital Ltd. is affiliated with Couloir Securities Ltd., an Exempt Market Dealer. They shall be referred to interchangeably as Couloir Capital herein. Couloir Capital’s business is connecting mining companies with suitable investors that qualify under available regulatory exemptions.
Couloir Capital, its affiliates, and their respective officers, directors, representatives, researchers, and members of their families may hold positions in the companies mentioned in this document and may buy and/or sell their securities. Additionally, Couloir Capital may have provided in the past and may provide in the future, certain advisory or corporate finance services and receive financial and other incentives from issuers as consideration for the provision of such services. Couloir Capital has prepared this document for general information purposes only. This document should not be considered a solicitation to purchase or sell securities or a recommendation to buy or sell securities. The information provided has been derived from sources believed to be accurate but cannot be guaranteed. This document does not consider the particular investment objectives, financial situations, or needs of individual recipients and other issues (e.g. prohibitions to investments due to law, jurisdiction issues, etc.) which may exist for certain persons. Recipients should rely on their own investigations and take their own professional advice before making an investment. Couloir Capital will not treat recipients of this document as clients by virtue of having viewed this document. Company-specific disclosures, if any, are below:
1. In the last 24 months, Couloir Capital Ltd. HAS been retained under a service agreement by the subject issuer. This service agreement includes analyst research coverage.
2. The views of the Analyst are personal.
3. No part of the Analyst’s compensation was directly or indirectly related to the specific ratings as used by the research Analyst in the Reports.
4. The Analyst DOES NOT maintain a financial interest in the securities or options of the Company.
5. Couloir Capital DOES NOT maintain a financial interest in the securities or options of the Company.
6. The information contained in the Reports is based upon publicly available information that the Analyst believes to be correct but has not independently verified with respect to truth or correctness.
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