Dundee made NexGen Energy Ltd. (TSE:NXE) its top uranium exploration pick on Thursday, giving it a ‘buy’ rating with a target price of C$3.30.
This followed NexGen’s announcement that it had discovered a new high-grade zone of mineralization 4.7 kilometres northeast of the Arrow deposit. The discovery happened during an ongoing summer drilling program on their Rook I property in the Athabasca basin of Saskatchewan.
The rating was based on a $3/lb compound of yellowcake uranium in situ value, estimating a mineral inventory of 275 to 285mln lbs.
“We believe the market should react extremely strongly to today’s news,” said Dundee analyst David A. Talbot said, while noting it was still a speculative risk.
"The intensity of high-grade uranium mineralization across the continuous 17-metre wide interval at the Harpoon discovery is consistent with that encountered in the high-grade A2 domain of the Arrow deposit,” noted NexGen VP of exploration and development in their announcement on Thursday.
“The exploration principles that have led to these high-grade discoveries will continue to be utilized along the 9.5-kilometre strike length of Patterson conductor corridor contained within our Rook I property,” he added.
Dundee also gave Crescent Point Energy Corp. (TSE:CPG) a buy rating with a target of C$22.75, following Q2 results in line with earlier estimates and cash flow that beat the street.
Bankers’ Petroleum Ltd. (TSE:BNK) had a tender rating, with a Dundee target of $2.20 following a modest miss and lower production in the Q2 for 2016.
Dundee gave Bonterra Energy Corp. (TSE:BNE) a buy rating with a target of $27.75 after Q2 results put it ahead of expectations, despite slightly lower production.