Roth Capital is keeping its 'Buy' rating and C$6.25 price target on New Pacific Metals Corp (CVE:NUAG) (OTCMKTS:NUPMF) thanks to the success of the firm's final round of drill results for its 2019 campaign in Bolivia.
Of particular importance is the fact that the 37 holes from Snake Hole and Silver Sand main showed higher average grades when compared to the average grade of all prior results at the project.
READ: New Pacific Metals releases new drill results showing near-surface mineralization at Silver Sand
“We view this as positive and believe the next major catalyst for the company should be an initial resource estimate,” wrote the Roth analysts in their most recent note to investors.
The Snake Hole prospect is one of nine high priority silver targets identified by New Pacific. The area is located around 600 meters east of the primary area of the Silver Sand project, which is located 25 kilometres northeast of the famous Cerro Rico silver and base metal mineral system near Potosi in Bolivia.
Of the 37 additional drill holes assessed at Silver Sand and Snake Hole, 35 showed significant intervals of mineralization with an average thickness of 49.9 meters and an average grade of 128.8 g/t silver per hole.
The Roth team thinks New Pacific will complete its initial resource estimate late in the first quarter or early in the second quarter of 2020. The group also argues that the explorer’s financial results for the fiscal second quarter are “insignificant”. “We continue to estimate an initial resource estimate of 250 million ounces of silver with an average grade of 90 +g/t, but believe this could prove conservative depending on pit shape and cutoff grade assumptions,” said the Roth analysts.
The explorer recently told shareholders that it is currently completing detailed geological and structural mapping and geochemical sampling on the Silver Sand North Block, which is located around 2km north of the main Silver Sand deposit. Results from the mapping and sampling program will be used for target generation and initial drill testing.