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