Analysts at Couloir Capital have reiterated their ‘Buy’ rating and fair value estimate of $0.15 per share on Murchison Minerals Ltd (TSX-V:MUR, OTCQB:MURMF) after the company’s summer drilling program at its Haut-Plateau de la Manicouagan (HPM) project strengthened its district-scale nickel-bearing sulphide potential.
The base metals explorer, which has two key projects, the Brabant McKenzie VMS Zinc project in Saskatchewan, and the HPM Ni-Co-Cu project in Quebec, recently revealed that the summer drilling program at HPM expanded surface mineralization at previously identified zones and unveiled numerous new showings of sulphide mineralization.
The Couloir Capital analysts noted that the HPM Project is developing at a time when worldwide nickel demand is slated to increase significantly over the coming years as the world transitions to net zero.
READ: Murchison Minerals reports promising nickel-copper-cobalt drill results from Haut-Plateau de la Manicouagan project in Quebec
They said: “The opportunity is compounded for Murchison by the fact there is significant pre-existing infrastructure like a maintained highway, rail, and available hydropower all within kilometers of its project site.”
The analysts pointed out that the Critical Minerals Strategy launched by the Canadian government aims to boost the production of critical minerals such as nickel, cobalt, lithium, and others.
The C$3.8 billion program will focus on speeding the permitting and regulatory procedures, as well as provide tax credits for new mines and subsidies for infrastructure, which all this bodes well for Murchison, they said.
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