Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCMKTS; LLJ:FSE) announced additional drill results from its Romanera project in Spain, which are helpful in the ongoing effort to determine the deposit's boundaries, reported Research Capital Corp. analyst Adam Schatzker in an October 14, 2022 research note.
"Overall, we think the drilling is successfully demonstrating the validity of the historic resource while highlighting the potential to significantly increase the size of the deposit," Schatzker wrote.
Meanwhile, the Canadian explorer has 13 rigs drilling there around the clock.
Research Capital has a Speculative Buy rating and a CA$3.75 per share target price on Emerita, the current share price of which is about CA$0.83.
This "should help ensure a fairly steady stream of news and accelerate the company's ability to generate a new, 43-101 compliant resource" in 2023, Schatzker commented.
He reviewed the new results, which he described as "mixed," of holes drilled to test strike outside of the historic Romanera resource. Schatzker reported on the three holes that encountered base and precious metals mineralization: LR024, LR028, and LR020. The fourth hole intersected mostly pyrite.
The three holes were drilled to test for mineralization at about a 225 meter (225m) depth and across 450m of strike. Of the trio, Schatzker noted, LR024, placed within the historic resource area, returned the best results. Intersecting both the upper and lower lenses, LR024 shows 10.6m of 6.55% copper equivalent (Cu eq) and 30m of 3.89% Cu eq.
LR028 was drilled to the west of LR024 and cut both upper and lower lenses. Intercept widths are "quite narrow" versus the average widths of Emerita's drilling at the project, Parkinson relayed. Grades are below the grade of the historic resource.
LR020 was drilled to the east of LR024 and intersected only the lower lens. Except for one intercept, 16.6m of 2.33% Cu eq, widths, and grades are like those of LR028.
"The company believes that the drilling has demonstrated the existence of two subparallel lenses that merge to the west and appear to continue below the depth of EMO's drilling," Schatzker explained.
Emerita also believes the mineralization of Romanera extends below 500m, and untested strike remains. Drilling continues.
Research Capital has a Speculative Buy rating and a CA$3.75 per share target price on Emerita, the current share price of which is about CA$0.83.
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Disclosures For Research Capital Corp., Emerita Resources Corp., October 14, 2022
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Adam Schatzker has visited Emerita Resources Corp. in the past 18 months.
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