Equity Metals Corp. (EQTY:TSX.V) drilling had expanded its resource by 30%, reported Fundamental Research Corp. analysts Siddharth Rajeev and Nina Rose in a February 16 research note.
Equity Metals has been conducting an expansion drilling program at its fully-owned Silver Queen project site in British Columbia since the analysts last reported on their progress in December 2022. Based on the results received so far, it appears that the dimensions of the mineralized zones at Silver Queen have grown by approximately 30%.
Silver Queen is home to high-grade epithermal veins. Out of 20 vents, four host resources that amount to 1.04 Moz AuEq (85 Moz AgEq) at 6.2 g/t AuEq
(512 g/t AgEq) altogether.
The analysts noted that they think the "recent drill program has identified additional resources at the Camp and Sveinson deposits and confirmed mineralization at the George Lake and Cole Lake targets." These targets were not originally a part of the 2022 resource estimate.
Drill holes at Silver Queen were also reported to have "bonanza grades of over 2,000 g/t AgEq," the analysts said.
They also pointed out management's intention to start a 6,500 meter 20 hole drilling program, which will keep its attention on George Lake.
As for the market, the analysts are keeping things optimistic as they await possible rate cuts by the Federal Reserve in H2 2024. They also pointed out their belief that inflation will not fall lower but instead continue above the historical average for the rest of 2024.
"We are reiterating our Buy rating and adjusting our fair value estimate from CA$0.34 to CA$0.30/share. EQTY is the most under-valued junior among our list of comparables. Upcoming catalysts include drilling and a potential rally in gold/silver prices," the analysts wrote.
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Disclosures for Fundamental Research Corp., Equity Metals Corp., February 16, 2024
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