G Mining Ventures Corp (TSX-V:GMIN, OTCQX:GMINF) is showing signs of having a solid project with continuous mineralization at its flagship Tocantinzinho (TZ) project in Brazil, according to seven financial industry analysts.
G Mining previously announced that the latest results confirm higher-grade gold in the main pit area of TZ and increased the extent of the area that would be mined during pre-production of the largest known gold deposit in the Tapajos province.
The seven brokerage firms rated G Mining (GMIN) from 'Speculative Buy' to 'Outperform' with stock price targets ranging from C$1.55 up to C$2.80 per share.
READ: G Mining Ventures says latest drilling at Brazil asset has shown mineralization extends below current pit design
Sprott Resource Lending (TSX:SIL) called G Mining “One of the best build teams in the world on a solid project, looking forward to this mine being built.” They rate the stock as a 'Buy' with a target price of C$1.80 per share.
Sprott brokers noted that drilling showed results that included 194 metres (m) at 1.5 grams per tonne (g/t) gold, 145m at 1.7 g/t gold, 126m at 1.5 g/t gold, and 176m at 1.0 g/t gold within the existing pit shell at TZ, and added that G Mining has infill drilled 6,234m to date with assays pending for nine holes.
Meanwhile, BMO analysts agreed that G Mining’s TZ drill results confirm a high-grade core and continuity of the in-pit mineralization and delineating mineralization below the pit shell. They rate the stock as 'Outperform' with a target price of $1.60.
RBC said TZ drilling shows potential for expansion. “The current resource stands at 2.1 million ounces gold at average grade of 1.36 g/t,” wrote RBC analysts, adding they rate the stock as 'Outperform' with a target price of $2.
Cormark Securities wrote that the results would further define areas to be mined during pre-production.
“While ongoing drill results highlight the project's blue-sky exploration, in our view, the market remains acutely focused on G Mining's ability to execute on the development of the project,” the brokers at Cormark wrote, adding their target price is $2.80 per share with a 'Buy' recommendation.
National Bank of Canada (TSX:NA) analysts said the result shows “further confidence in grade reconciliation for the mine plan over the near term and highlights the potential for resource expansion at depths below 350m over the long term.” The analysts rate the stock as 'Outperform' with a target price of $1.55.
PI Financial, meanwhile, has a 'Buy' rating on the stock with a target price of $2.50. The brokers wrote they anticipate further positive drill results from upcoming drilling near the Castor target, which is located southeast of the Tocantinzinho deposit.
“GMIN continues to be focused on construction initiatives at TZ and expects 2023 to be a critical year of execution in order to meet their target to realize commercial production in mid-2024,” PI noted.
Finally, Paradigm Capital analysts wrote that G Mining is their “favourite gold developer”, and rate GMIN as a 'Speculative Buy', with a target price of $2.00 per share over the next 12 months.
Contact the author at susie@proactiveinvestors.com