Analysts at Stifel and Canaccord Genuity (TSX:CF, LSE:CF) Group Inc hailed Dundee Precious Metals Inc's (TSX:DPM) high-grade drill results from its ongoing drill program at the Čoka Rakita exploration target located 3 kilometers (km) southeast of the company’s wholly owned Timok Gold project in Serbia.
Highlights from the results released by Dundee this week include 63.46 grams per ton (g/t) gold (Au) and 0.11% copper (Cu) over 40 meters (m) from 517m depth, among other high-grade intercepts.
Stifel has a “Buy” recommendation and C$11 target price on the gold-copper producer, which has operating assets in Bulgaria, Canada, Serbia, and Ecuador. Dundee’s share price currently hovers around C$7.89.
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“Eye-catching grades from drill results further build on high grades encountered at Čoka Rakita in previous drilling campaigns and continue to demonstrate upside potential of the Čoka Rakita exploration prospect,” Stifel’s analysts said in a note to clients.
“Preliminary metallurgical test work has indicated gold recoveries of greater than 93%, with further test work scheduled for 2023.”
The drill results come from Dundee’s recent fourth quarter 2022 drill campaign which drilled 8,750m across 10 holes. Assay results for five holes are still pending.
Drilling to date has indicated a high-grade mineralized body at Čoka Rakita that is currently 500m long, 250m wide and up to 80m thick, and remains open to the north, east, and south.
Drill highlights include:
- RADDMET01: 40m at 63.46 g/t Au and 0.11 % Cu from 517m depth, including 1m at 2,140 g/t Au from 548m to 549m.
- RIDD004: 65m at 13.40 g/t Au from 511m, including 38m at 19.43 g/t Au from 537 m depth
- RIDD001: 71m at 3.46 g/t Au and 0.16% Cu from 454m depth
Stifel noted that it’s still early days for Čoka Rakita, but it is “encouraged” by the drill results demonstrating “higher grades” and preliminary metallurgical test work confirming non-refractory mineralization.
“Exploration success could potentially reshape the Timok Gold project. For 2023, DPM has allocated 40,000m of drilling at Čoka Rakita,” the analysts added.
Better project odds
Meanwhile, analysts at Canaccord Genuity (TSX:CF, LSE:CF) noted that “things get sweeter at Coka Rakita” following the company’s new high-grade discovery.
“Very positive. Investors may recall that DPM has struggled to define an economically compelling project at Timok, and we believe the discovery of a high-grade prospect within trucking distance greatly improves project odds,” Canaccord’s analysts noted.
The Canadian broker said management has paused further technical study work on Timok while they progress the Coka Rakita deposit.
In addition to its many assets, Dundee also has equity interest in Sabina Gold & Silver, INV Metals and Velocity Minerals.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive