ION Energy Ltd (TSX-V:ION, OTCQB:IONGF) is a 'Buy' for analysts at Couloir Capital as it makes progress at its projects in Mongolia - Baavhai Uul, and Urgakh Naran.
Noting that initial results of both projects returned a number of high-grade lithium highlights suggesting large base metal potential, the firm reiterated a 'Buy' rating and raised its fair value per share estimate to $1.45 per share from $1.12 per share, in a noted to clients.
“ION has made significant progress at its 100% owned Urgakh Naran project. This includes the completion of drilling three diamond core holes and reporting assay results that offer promising indications about the project’s lithium potential,” the Couloir analysts wrote.
“ION also completed three hydrogeological sampling wells and assembled hydrogeological testing equipment, solinst pumps, and bailers at Urgakh. This suggests that the company will commence the sampling for analysis and is fast advancing toward inferred resource calculation,” they added.
At Baavhai Uul, the analysts noted that ION commenced a hydrogeological sampling program during the third quarter of 2022 as well as plans to undertake a detailed geophysics program using transient electromagnetic (TEM).
The company completed a maiden auger drilling program at Baavhai Uul in 2021, which led to the discovery of a new lithium-prospective target zone designated as the White Wolf Prospect.
“We expect that positive findings at Urgakh Naran could build upon positive results from the 2021 drilling at Baavhai Uul and build a growth platform for ION to leverage in future exploration,” they said.
The analysts said they believe the near-term catalyst for ION will be the release of inferred resource estimates in the second quarter of 2023, which would confirm the large potential of Urgakh Naran and will be a major step towards to advance the project toward a maiden resource estimate.
Contact the author at stephen.gunnion@proactiveinvestors.com