logo-loader
viewNew Pacific Metals

New Pacific's maiden resource estimate on Silver Sand increases project value, says Roth analyst

Roth’s Joe Reagor wrote that the initial resource showed 'stronger than expected' grade, which increases the project’s value on a per-ounce basis

New Pacific Metals -
Silver Sand’s mineral estimate outlines a 35.4-million-ton resource grading at 137 g/t silver for 155.9 million ounces in the measured and indicated category

New Pacific Metals Corp (CVE:NUAG) (OTCQX:NUMPF) reported a maiden resource on its Silver Sand project on Tuesday that included higher-than-expected silver grades, said Roth Capital analysts in a note Wednesday.

Roth’s Joe Reagor wrote that the initial resource showed “stronger than expected” grade, which increases the project’s value on a per-ounce basis.

Silver Sand’s mineral estimate outlines a 35.4-million-ton resource grading at 137 grams per ton silver for a total of 155.9 million ounces in the measured and indicated category.

READ: New Pacific Metals delivers maiden resource estimate on Silver Sand project

The project also has 9.8 million tons at 112 grams per ton silver for 35.6 million ounces in the inferred category.

“(While) total ounces were 23.4% below our estimate, grade was 35.4% above our estimate,” Reagor wrote. “We believe the resource estimate is a reflection of more conservative mining assumptions by the third party engineers.”

In addition, Reagor said he believes the resource should grow over time.

“We expect the initial resource is only the beginning for the Silver Sand project as the deposit remains open,” Reagor wrote. “We also note that the initial resource excludes two areas that NUAG provided potential ranges for. On the low end of these ranges, these areas would add an additional 46.5 million ounces of silver.”

Reagor told investors that the company should show further exploration success later in the year.

The research firm is maintaining a Buy rating and a C$6.25 price target on New Pacific’s stock.

Contact Angela at [email protected]

Follow her on Twitter @AHarmantas

Quick facts: New Pacific Metals

Price: 5.45 CAD

TSX-V:NUAG
Market: TSX-V
Market Cap: $829.07 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of New Pacific Metals named herein, including the promotion by the Company of New Pacific Metals in any Content on the Site, the Company receives...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: New Pacific Metals names Dr Mark Cruise as their new Chief...

New Pacific Metals (CVE: NUAG-OTCQX: NUPMF) new Chief Executive Officer Dr Mark Cruise joined Steve Darling from Proactive Vancouver to discuss his new role with the company. Cruise takes over the company at a great time following the release of their mineral resource estimate for the Silver...

on 1/5/20

2 min read