Analysts at Couloir Capital Ltd have repeated their ‘Buy’ rating for MAS Gold Corp (TSX-V:MAS, OTCQB:MSGCF), citing the company's success in achieving major exploration milestones in its campaign to build its flagship La Ronge portfolio in Saskatchewan to a million gold ounces.
In a note to clients, the analysts wrote that MAS had significantly advanced its La Ronge gold complex since their last update in March 2022, including the release of updated mineral resource estimates for the North Lake deposit which has increased the estimated net gold ounces by more than 28%.
“We consider the update of North Lake resource estimates to be a material valuation milestone,” they wrote.
READ: MAS Gold unveils updated and upgraded resource estimate for North Lake gold deposit, Saskatchewan
Couloir’s analysts also highlighted that MAS was working towards completing a preliminary economic assessment (PEA) for the project, expected to be completed later this year, in addition to completing an updated mineral resource estimate (MRE) for the Preview SW deposit in early 2023.
“We see an upgraded MRE at Preview SW as a key event for MAS in its goal of consolidating over 1.5 million ounces of gold in the prolific La Ronge Gold Belt,” they wrote.
“As the resource base further escalates, we see MAS as being a potential takeover target for other large gold producers.”
However, the analysts revised down their fair value per share estimate for the stock from C$0.26 to C$0.16. They attributed the move to the reduction in peer valuations and the increase in share count, partially offset by the increase in net ounces courtesy of the updated resource at the North Lake deposit.
MAS Gold’s Toronto-listed shares are currently trading at about C$0.04.
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