By The Gold Report
https://www.streetwisereports.com/pub/na/17026
Assay results from Newmarket Gold’s Harrier South gold system have confirmed the potential for expansion at the company’s Fosterville Gold Mine in Australia.
In a June 27 press release, Newmarket Gold Inc. (NMI:TSX; NMKTF:OTCQX) announced positive results from a 57-hole drill program intended to define resource extensions at Fosterville. Highlight assays include 22.13 g/t gold over 3.4m from the Harrier base structure and 16.6 g/t gold over 30.5m in the Osprey zone.
The results prompted a pair of analysts to respond to the findings.
In a note published on June 28, Heiko Ihle of Rodman & Renshaw notes that “the targets of the drilling program are directly down plunge from active mining operations, and the Harrier South target is just 1.2 kilometers south of the Phoenix and Lower Phoenix reserves. Given this, we believe the drilling program in the area could further upgrade resources to additional reserves.”
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Ihle also mentioned the fact that, in association with drill results, “visible gold” was discovered at Harrier. “It showed up in Hole UDH1559.” the analyst wrote.
Also in a June 28 note, analyst Philip Ker of PI Financial commented that the 2016 drill program “has thus far been aggressive and confirmed positive results” at the site.
“With confirmation of increasing grades at depth down plunge from existing underground infrastructure at Fosterville, we anticipate Newmarket to focus on reserve growth and demonstrate increasing mine life at its flagship operation,” Ker wrote. “. . .With further upside yet to come at Fosterville and other exploration efforts at its operations, we believe Newmarket will continue its re-rating to become valued more in-line with its peers.”
Ihle expressed confidence about the long-term potential of Fosterville, noting “exploration success should be had as the mine continues to prove itself as a top-tier gold asset.”
Ihle also believes that Newmarket’s stock could also benefit from the recent Brexit vote, noting “gold has once again reared its head as the premier safe haven asset, with an approximate 5% increase in price on the day following the vote. . .Newmarket stand to benefit from both an increase in the gold price as well as a continued relatively weak Australian dollar.” The increase in “asset prices” could also spur Newmarket to “evaluate internal growth opportunities, such as Maud Creek.”
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Disclosure:
1) Tracy Salcedo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or her family owns, shares of the following companies mentioned in this article: None.
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5) The analysts reports quoted in this article disclose the following:
I, Philip Ker, hereby certify that all of the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly related to the specific recommendations or views expressed in this report. I am the research analyst primarily responsible for preparing this report.
I, Heiko F. Ihle, CFA and Jake Sekelsky, certify that 1) all of the views expressed in this report accurately reflect my personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neither myself nor any members of my household is an officer, director or advisory board member of these companies. None of the research analysts or the research analysts household has a financial interest in the securities of (including, without limitation, any option, right, warrant, future, long or short position).
PI Financial and/or its affiliates expect to receive or intend to seek
compensation for investment banking services from the subject company.
Rodman & Renshaw and/or its affiliates expect to receive or intend to seek
compensation for investment banking services from the subject company.
( Companies Mentioned: NMI:TSX; NMKTF:OTCQX,
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