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TICKERS: EMO; EMOTF; LLJ

Steady News Stream Expected From Exploration Co.
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With 13 active drill rigs at its project in Spain, this Canadian mining firm should continue announcing results over the near term, noted a Research Capital Corp. report.

Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCMKTS; LLJ:FSE) announced additional drill results from its Romanera project in Spain, which are helpful in the ongoing effort to determine the deposit's boundaries, reported Research Capital Corp. analyst Adam Schatzker in an October 14, 2022 research note.

"Overall, we think the drilling is successfully demonstrating the validity of the historic resource while highlighting the potential to significantly increase the size of the deposit," Schatzker wrote.

Meanwhile, the Canadian explorer has 13 rigs drilling there around the clock.

Research Capital has a Speculative Buy rating and a CA$3.75 per share target price on Emerita, the current share price of which is about CA$0.83.

 

This "should help ensure a fairly steady stream of news and accelerate the company's ability to generate a new, 43-101 compliant resource" in 2023, Schatzker commented.

He reviewed the new results, which he described as "mixed," of holes drilled to test strike outside of the historic Romanera resource. Schatzker reported on the three holes that encountered base and precious metals mineralization: LR024, LR028, and LR020. The fourth hole intersected mostly pyrite.

The three holes were drilled to test for mineralization at about a 225 meter (225m) depth and across 450m of strike. Of the trio, Schatzker noted, LR024, placed within the historic resource area, returned the best results. Intersecting both the upper and lower lenses, LR024 shows 10.6m of 6.55% copper equivalent (Cu eq) and 30m of 3.89% Cu eq.

LR028 was drilled to the west of LR024 and cut both upper and lower lenses. Intercept widths are "quite narrow" versus the average widths of Emerita's drilling at the project, Parkinson relayed. Grades are below the grade of the historic resource.

LR020 was drilled to the east of LR024 and intersected only the lower lens. Except for one intercept, 16.6m of 2.33% Cu eq, widths, and grades are like those of LR028.

"The company believes that the drilling has demonstrated the existence of two subparallel lenses that merge to the west and appear to continue below the depth of EMO's drilling," Schatzker explained.

Emerita also believes the mineralization of Romanera extends below 500m, and untested strike remains. Drilling continues.

Research Capital has a Speculative Buy rating and a CA$3.75 per share target price on Emerita, the current share price of which is about CA$0.83.


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Disclosures:
1) Doresa Banning wrote 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: Emerita Resources Corp. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with: None. Please click here for more information.

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Disclosures For Research Capital Corp., Emerita Resources Corp., October 14, 2022

Analyst Certification: I, Adam Schatzker, certify the views expressed in this report were formed by my review of relevant company data and industry investigation, and accurately reflect my opinion about the investment merits of the securities mentioned in the report. I also certify that my compensation is not related to specific recommendations or views expressed in this report. Research Capital Corporation publishes research and investment recommendations for the use of its clients. Information regarding our categories of recommendations, quarterly summaries of the percentage of our recommendations which fall into each category and our policies regarding the release of our research reports is available at www.researchcapital.com or may be requested by contacting the analyst. Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.

Adam Schatzker has visited Emerita Resources Corp. in the past 18 months.

General Disclosures: The opinions, estimates and projections contained in all Research Reports published by Research Capital Corporation ("RCC") are those of RCC as of the date of publication and are subject to change without notice. RCC makes every effort to ensure that the contents have been compiled or derived from sources believed to be reliable and that contain information and opinions that are accurate and complete; RCC makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions which may be contained therein and accepts no liability whatsoever for any loss arising from any use of or reliance on its Research Reports or its contents. Information may be available to RCC that is not contained therein. Research Reports disseminated by RCC are not a solicitation to buy or sell. All securities not available in all jurisdictions.

Potential Conflicts of Interest: All Research Capital Corporation ("RCC") Analysts are compensated based in part on the overall revenues of RCC, a portion of which are generated by investment banking activities. RCC may have had, or seek to have, an investment banking relationship with companies mentioned in this report. RCC and/or its officers, directors and employees may from time to time acquire, hold or sell securities mentioned in our Research Reports as principal or agent. RCC makes every effort possible to avoid conflicts of interest, however readers should assume that a conflict might exist, and therefore not rely solely on this report when evaluating whether or not to buy or sell the securities of subject companies.

RCC USA: Information about Research Capital Corporation’s Rating System, the distribution of our research to clients and the percentage of recommendations which are in each of our rating categories is available on our website at www.researchcapital.ca. The information contained in this report has been drawn from sources believed to be reliable but its accuracy or completeness is not guaranteed, nor in providing it does Research Capital Corporation assume any responsibility or liability. Research Capital Corporation, its directors, officers and other employees may, from time to time, have positions in the securities mentioned herein. Contents of this report cannot be reproduced in whole or in part without the express permission of Research Capital Corporation. US Institutional Clients – Research Capital USA Inc., a wholly owned subsidiary of Research Capital Corporation, accepts responsibility for the contents of this report subject to the terms and limitations set out above. 




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