National Bank of Canada Neutral On i-80 Gold's Assays From Hilltop Corridor Discovery
Comment of the Day

December 19 2022

Commentary by Eoin Treacy

National Bank of Canada Neutral On i-80 Gold's Assays From Hilltop Corridor Discovery

This article from MT Newswires may be of interest. Here it is in full

National Bank of Canada said Monday that it ascribed a neutral bias on i-80 Gold Corp. (IAU.TO)'s Hilltop corridor discovery at the Ruby Hill property that showed elevated zinc mineralization.

Drill highlights include 12.3% zinc over 39.6 meters, adding to the high-grade polymetallic discovery in the Hilltop zone announced in November.

The bank said the results were limited to a single hole although it reinforces Ruby Hill's optionality as well as potential host to oxide and sulfide gold as well as skarn base metal mineralization, all within proximity of the underground infrastructure planned in 2023.

"Results add a high-grade datapoint to the broader Hilltop area, while expanding the region of prospectivity, still open in all directions," the bank said.

National Bank gave i-80 an outperform rating with a $4.25 price target. Price: 3.58, Change: -0.18, Percent Change: -4.79

Eoin Treacy's view

I-80, named for the highway the mine sits near, has been reporting impressive drill results for over two years. The promise of a major new resource with easy access to transportation links, and in close proximity to established mines, suggests the aim of the management team is to be acquired.

This is a solid business model and very much akin to how biotech companies operate. In a liquidity- constrained environment, the easy mining option is to explore in close proximity to existing mines, proof up the reserves, and sell for a premium to a well-funded established senior producer.

The share IPOed in 2021 and has been ranging between $2 and $4 since. It is currently at the upper side of the range and consolidation is underway.
Gold continues to range in the region of $1800. It rallied when bond yields fell so investors continue to regard gold as a hedge against deflationary forces.

Back to top

You need to be logged in to comment.

New members registration