Investment bank Roth Capital Partners reckons shares in New Pacific Metals Corp (CVE:NUAG) (OTCQX:NUPMF) will "rise significantly" over the rest of the year as the resource group is set to release a string of drill results.
Roth has repeated a 'Buy' rating on the stock following latest results from the first eight holes from this year's drill program at Silver Sand project in Bolivia.
The holes showed better grades and thickness than the averages seen in the 195 holes last year, noted analyst Joe Reagor in a research note.
A highlight assay was an intercept of 144.2 meters grading 169 g/t (grams per ton) silver.
The Roth analyst hiked his target price on the stock to C$3.50 from C$3 previously in the light of the positive drilling.
"Over the remainder of 2019, we anticipate a steady stream of drill results from New Pacific. We also believe these results will serve as a potential source of catalysts for the company," wrote Reagor. "However, we continue to believe the most significant near-term catalyst for the company should be the release of an initial resource estimate later this year."
Pull-back in shares
The analyst also noted that NUAG shares had seen a pull back from a peak of C$2.50 earlier this year, which he put down to a number of factors including poor silver price performance, profit-taking, and a lack of drill results to provide catalysts.
New Pacific Metals is exploring and developing precious and base metals properties in South America, Canada and China. Its flagship property is the Silver Sand project in the Potosí Department of Bolivia. New Pacific's largest shareholders are Silvercorp Metals Inc. (TSE:SVM) and Pan American Silver Corp. (TSE:PAAS) (NASDAQ:PAAS).
Silver Sand consists of three 100% owned concessions of around 7 square kilometers (sq km) plus an area of around 57 sq km and has been subjected to some small-scale, historic mining and was drilled during the period 2012 through 2015 by a previous company.
Shares in New Pacific eased 5.8& in Toronto to $2.08 each.
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