Initial drill results from Blackwolf Copper & Gold Ltd.'s (BWCG:TSX.V) Harry property in British Columbia's Golden Triangle highlight a gold discovery in the Swann zone, reported Red Cloud Securities analyst Taylor Combaluzier in an October 31 research note.
"We believe that a follow-up drill program is already warranted to better define and expand the high-grade mineralization at Swann," Combaluzier wrote.
139% Return on Investment
Based on the news, Red Cloud maintained its target price on Blackwolf of CA$0.55 per share, noted Combaluzier. In comparison, the Canadian explorer's current share price is about CA$0.23.
Based on these figures, the implied return to target for investors is significant, at 139%.
Blackwolf remains Buy-rated.
"We continue to believe that Blackwolf is poised for growth as melting glacial ice exposes new, untested areas," Combaluzier wrote.
Focus on Sixth Hole
The maiden results are from one hole of the completed seven-hole, 1,740-meter (1,740m) program in Harry's Swann zone, reported Combaluzier. This sixth hole, H23-017, is the one previously reported to show coarse visible gold.
H23-017 was a stepout, about 250m from a hole drilled by Optimum Ventures, that demonstrated 1,437 grams per ton silver equivalent (1,437 g/t Ag eq) over 15.64m.
High Grades Encountered
Combaluzier highlighted that H23-017 returned two zones of bonanza-grade gold.
One zone showed 312 g/t gold (Au) and 101 g/t silver (Ag), starting 139m downhole and spanning 1m. These grades of precious translate to 29,098 g/t in silver equivalent.
The other zone demonstrated 277 g/t Au and 118 g/t Ag, over 1m starting from 199m downhole. In silver equivalent, these grades equal 25,862 g/t.
"The intercepts occur in a wide zone of multiple, overlapping phases of sulfide mineralization and quartz veins," Combaluzier wrote. "Mineralization remains open along strike."
These results are only some of the available data for hole H23-017; more are to come soon.
Next year, Blackwolf intends to circle back to Harry, conducting follow-up drilling in the Swann zone and drilling untested areas.
Mineralization Seen Before
Combaluzier pointed out that the mineralization seen at Harry is similar to that at nearby high-grade mines, including Brucejack and Premier. Specifically, the gold is high grades and occurs within coarse gold veins.
"The Harry property lies along a geological corridor prospective for gold-silver mineralization that is at least 15 kilometers (15 km) long by 3 km wide," the analyst explained.
Stretching from the Scottie mine down to south of the Premier mine, this corridor also hosts the Big Missouri, Silver Coin, and Martha Ellen deposits.
Catalyst-Rich Q4/23
Blackwolf has three potential stock-moving events slated to happen before year-end.
1) One is the release of the remaining 2023 drill results from Harry, anticipated in November.
2) Another is drill results from the 1,356m drilled this year at its Cantoo project.
3) The third is the results of phase two processing studies relating to a potential mill at Kitsault.
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Important Disclosures:
- Blackwolf Copper and Gold Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Blackwolf Copper and Gold Ltd.
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
- The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
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Disclosures for Red Cloud Securities, Blackwolf Copper and Gold Ltd., October 31, 2023
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