Premier Gold Mines an even stronger 'buy' after indicated resources lift

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After Premier Gold Mines's positive resource estimate yesterday, the equity research analysts at Cantor Fitzgerald put a target of Can$4.15 on the miner's shares, up from a previous target of Can$3.85.

Premier Gold Mines announced on Wednesday that its Hardrock gold deposit, an open pit project in located in northwestern Ontario, would be increasing its indicated resources by 60% to 3.97 million ounces.

The stock has traded up 17.25% to $3.37 in the last five days.

Other highlights from the resource announcement were the following:

  • Overall Indicated resources of 4.87 million (M) ounces, an increase of 1.63M ounces or 50%.
  • Overall Inferred resources of 2.74M ounces, a decrease of 1.04M ounces or 27%.
  • O/P Indicated resources of 3.97M ounces, an increase of 1.62M ounces or 69% with coincident increases in resource grades.
  • New estimate utilizes identical grade capping, COG's and gold price (in Canadian dollar terms) versus previous estimate as well as 86,500 metres of additional infill drilling for a total of 621,000 metres.

The company expects to release a feasibility study in the first half of 2015.

Ticker Report says Premier Gold Mines has an average rating of "Buy" with two analysts giving the stock a hold rating and six assigning it a buy rating.

The Hardroock gold project is a located in northwestern Ontario 4KM west Geraldton, Ontario. Map is from Company & PropertyMine.