A CIBC report relayed the latest exploration findings at one of its Canadian mines.
In a July 6 research note, CIBC analyst Cosmos Chiu indicated that Kirkland Lake Gold Ltd (TO:KL) reported results from underground drilling in the eastern extension of the South mine complex at Macassa, which "continue to support the company's growth plans" there. CIBC increased its target price on the company to CA$31 per share from CA$26. In comparison, it is trading today at around CA$29.29 per share.
At Macassa, the company intends to finish building the #4 shaft and to reach annual gold production of more than 400,000 ounces. Chiu noted that "intersections reported today are in close proximity, or ~560 meters (~560m) south-southeast, of the new #4 shaft," the first construction phase of which is scheduled for completion in early 2022.
Chiu relayed that drilling indicated additional resource expansion as all of the extensions but two were outside of the existing mineral resource area. The high-grade ones included 241 grams per ton (241 g/t) over 1.1m true width, 24.3 g/t over 1.4m true width and 54.2 g/t over 2.3m true width. Others, within the footwall veins, included 50.7 g/t over 0.8m and 16 g/t over 0.7m.
Drilling also identified a "'high potential area' within the eastern extension of the South mine complex of high grades and exceptional true widths," Chiu said. It featured an approximately 73m strike length and 45m dip. Average grades there were greater than or equal to 30 g/t. True widths were greater than or equal to 30m.
Chiu added that Kirkland Lake, "one of our preferred gold producers," is trading below its peers but warrants a premium to the group based on its "ability to deliver attractive returns to investors." He reiterated CIBC's Outperformer rating on the miner.
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.
Add a Comment
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.