The Wallbrook Gold Company’s flagship project in the Eastern Goldfields of WA contains an emerging “gold trend” of more than 50 kilometers positioned between two Northern Star mining centers, with significant gold mineralization already confirmed at the Crusader-Templar discovery.
() was initiated by Euroz Hartleys with a buy recommendation and a target price of 80 cents per share (current share price: 46 cents).
Euroz Hartleys’ valuation has been compared to its ASX-listed gold exploration and development peers from Nexus and verified against direct peers in terms of its current stage of development.
Nexus offers a continuous and significant flow of information in the short to medium term, according to Euroz Hartleys.
Here is an excerpt from the initiation report:
- Nexus Minerals (NXM) is led by geologist and executive Andy Tudor named after the King of the Hills and Bannockburn gold discoveries in WA, as well as multiple discoveries of gold and porphyry copper in the Asia region. -Peaceful. It is supported by a highly respected and successful board of directors, management and technical team.
- NXM has three projects (Wallbrook, Pinnacles and Mt Celia) in Eastern Goldfields, WA and one project (Bethanga) in Victoria.
- Wallbrook is the 100% owned flagship project, conveniently located approximately 40 kilometers north of the Carosue Dam (CDO) operation of +5 million ounces of NST.
- Contains an emerging gold trend of +50 kilometers positioned between two NST mining centers, with significant gold mineralization already confirmed at Crusader-Templar, and further increases expected at Branches to the north.
- The mineralized gold corridor at Crusader-Templar extends +1.6 kilometers in direction (remains open) and displays a mineralized style similar to that of Karari (CDO) – we cautiously see a potential of +1.5 to 2 million ounces and continue to be impressed with grade which seems to be improving in depth.
- A potential deposit of this size has strategic value, especially even its proximity to existing infrastructure (transport routes, extraction and processing centers).
- The Crusader-Templar discovery alone underpins our price target of $ 0.80 / sh – with little to no consideration for other exploration projects or resources (which offer further upside potential).
- We start with a BUY recommendation and a target price of $ 0.80 / share. This is based on the reverse side of the Envelope Risk Development Scenario, the direction is checked against the EV: Resource Composite and M&A metrics.
- High news of current delineation drilling (Crusader-Templar / 30,000 meters RC and 3,000 meters of diamond).
- Deeper drilling at Crusader-Templar (300-700 meters deep).
- Regional activity (Branches – located to the north and along the Crusader-Templar strike).
- Definition of resources (in progress).
- Studies (existing metallurgical tests, other technical studies in progress).
- Update of resources (CY’22).
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