The Gold Report
Notable Quotes
"ICG has closed a CA$2.5M flow-through placement." (12/24/15) Integra Gold Corp. - Thibaut Lepouttre, Caesars Report More >
"The exploration upside at MAG's Juanicipio project is substantial." (12/23/15) MAG Silver Corp. - Gwen Preston, Resource Maven More >
"AKG's management continues to deliver on its development milestones." (12/22/15) Asanko Gold Inc. - Nana Sangmuah, Clarus Securities More >
"We are initiating coverage on KDX with a Buy rating." (12/21/15) Klondex Mines Ltd. - Don Blyth, Paradigm Capital More >
"VIT's Eagle is a shovel-ready, fully permitted, prefinanced gold project." (12/17/15) Victoria Gold Corp. - Tom Hayes, Edison Investment Research More >
Raymond James Initiates Coverage of SUE
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GARY BASCHUK, Raymond James
(01/10/2011)
"We are initiating coverage on Sulliden Gold Corp. with a Strong Buy rating and a 6–12 month target price of $3.30/share. We recommend accumulating shares of Sulliden on our expectations for near-term resource expansion and rapid development (derisking) of its Shahuindo project in Peru. Sulliden is a gold development and exploration company focused on its 100%-owned Shahuindo project in NW Peru. Shahuindo currently hosts an NI 43-101 Indicated resource estimate of 1.1 Moz. (grading 0.63 g/t) and 29.8 Moz. silver (grading 17.9 g/t). We believe an upcoming 43-101 estimate (expected by Feb 11) should grow Shahuindo's gold resource to >2 Moz. in the oxide category. This resource expansion will also be the basis for a feasibility study, expected to be released in early Q211. Our DCF analysis is based on a Feb 2010 PEA, as well as our own expectations for the project. Our model assumes a conventional open-pit, heap-leach operation beginning in early 2012 with an average annual production rate of ~136 Koz. gold, LOM cash costs of ~US$320/oz. and capex of ~US$127M. Our model derives an NPV (5%) of CAD$593M, based on a modeled resource of 2.05 Moz. With assays pending from a 30,000m 2010 drill campaign and five rigs carrying out an aggressive 70,000m 2011 program, we expect steady news flow over following weeks and months. We expect the 2011 drill program to focus on deeper sulphide zones and areas outside the central corridor (testing the limits of mineralization on the project). With ~CAD$52M in cash (post 12/15/10 accelerated warrant conversion), Sulliden is well funded to carry out an aggressive 2011 exploration program and conduct a feasibility study. Sulliden is led by an accomplished management team leveraging over 75 years of experience developing and operating mines in Central and South America." |
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