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Mining Company Reports Drill Results from Spain

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Emerita Resources Corp. has intersected gold and silver in Spain. Read on to see why analysts predict a 349% return on investment for this company's stock.

Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCMKTS; LLJA:FSE) announced in a press release on December 21, 2023, that it had intersected encouraging grades on the La Romanera section of its Iberian Belt West project. According to Emerita, the results come from two drill holes, LR158, and LR159, which the company intended to use to gather data on how far down mineralization extends in this section of La Romanera.

According to Emerita, while LR158 did not make any significant intersects, LR159 intersected 0.6% copper (Cu), 0.9% lead (Pb), 0.7% zinc (Zn), 0.96 grams per tonne (g/t) gold (Au), and 17.7 g/t silver (Ag) over 44.1m starting at a depth of 749.6, including 1.2% Cu, 1.6% Pb, 0.0% Zn, 0.12 g/t Au, and 14.0 g/t Ag across 10.0m, and including 0.7% Cu, 0.8% Pb, 1.5% Zn, and 1.87 g/t Au, and 23.0 g/t Ag across 10.4m.

The President of Emerita, Joaquin Merino, commented, "This has been a watershed year for the company and the development of the IBW project. The team has executed very well and processed a high volume of drill core from as many as 16 diamond drills to produce the initial NI 43-101-compliant mineral resource estimate for the project . . .  A focus for the 2024 program will be to drill for extensions of the copper zone identified in hole LR 152."

Gold Expected to Rally in New Year

On December 12, 2023, Stewart Thomson with 321 Gold noted that the market had seen "some wild trading for gold" that week and that prices had shot back up towards records at US$2145.

According to Thomson, investors are likely to see exciting profits off of shares bought at the end of 2023, as he expects a rally for gold in the near future. As for what's driving gold, Thomson commented, "Rates dipped to their 4.09% early March low from about 5% in October. That, combined with the horrifying Hamas-Israel war cycle action, helped gold stage a beautiful rally to above US$2080."

Chen Lin of What is Chen Buying? What is Chen Selling? reviewed the silver market on December 12, 2023, which he believes will continue to experience deficits due to economic uncertainty driving interest in the metal and demand related to its applications in solar energy. Lin observed that "in order to increase efficiency, 25-150% more silver is needed for the future generation of solar panels."

Potential 349% Return

Varun Arora with Clarus Securities released a report on June 24, 2023, where he rated Emerita as a "Speculative Buy" for investors, with a potential return on investment of 349%. Arora cited a number of factors in the company's rating, including the company's high-quality properties and maiden resource, which he estimated to represent CA$730 million in value.

On August 13, 2023, Technical Analyst Clive Maund included Emerita in a list of stocks rated as "Immediate Buys." Maund commented on the company's stock patterns: "The 5 big white candles on strong volume over the past month or so are bullish."

According to Emerita's investor presentation, the company has a number of catalysts to report, including ongoing drilling on the Nuevo Tintillo property and the La Romanera deposit and metallurgy work that will contribute to the company's updated MRE and PEA.

Ownership and Share Structure

streetwise book logoStreetwise Ownership Overview*

Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCMKTS; LLJA:FSE)

*Share Structure as of 12/29/2023

Reuters provided a breakdown of the company's ownership and share structure, where management and insiders own 5.78% of the company.

According to Reuters, Chairman Michael Lawrence Guy owns 1.90% of the company with 4.32 million shares, CEO David Patrick Gower owns 1.22% of the company with 2.76 million shares, President Joaquin Merino-Marquez owns 0.92% of the company with 2.09 million shares, Director Catherine Stretch owns 0.70% of the company with 1.60 million shares, Director Marilia Bento owns 0.44% of the company with 1.00 million shares, CFO Gregory Duras owns 0.29% of the company with 0.65 million shares, Corporate Secretary Damian J.D. Lopez owns 0.20% of the company with 0.46 million shares, and Executive Vice President Ian T. Parkinson owns 0.11% of the company with 0.25 million shares.

Reuters reports that institutions own 1.3% of the company, as Merk Investments LLC owns 1.21% of the company with 2.75 million shares, and Palos Management Inc. owns 0.09% of the company with 0.20 million shares.

According to Reuters, there are 234.82 million shares outstanding with 201.31 million free float traded shares, while the company has a market cap of CA$117.4 million shares and trades in the 52-week period between CA$0.26 and CA$1.03.

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Important Disclosures:

  1. Emerita Resources Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
  2. Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
  3. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

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