Base and critical metals explorer and developer Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCQB; LLJ:FSE), announced on Friday that "it has received complete assays for the first step-out drill hole from the Infanta drill program as well as the final in-fill drill holes."
Research Analyst Varun Arora commented in a research note that "Emerita Resources' infill drilling has validated the historic resource of 0.8 Mt at 26.5% Zn eq and the ongoing step-out drilling is confirming the significant expansion potential."
The firm indicated that its in-fill drill program has confirmed the historical strike data and will aid in completion of proper 3D modelling of the deposit which will help deliver fresh material for use in further metallurgical testing.
Emerita Resources stated that both drills at La Infanta are now being utilized for step-out drilling beyond the existing known boundaries to expand the deposit. The company advised that starting from a depth of 59.4m, drill Hole IN018 intersected 8.2 m of 2.5% Cu, 8.7% Pb, 17.3% Zn, 223.5 g/t Ag and 0.5 g/t Au. The firm noted that hole IN018 is located 40 m west of the historical limits of the deposit.
The company added that it drilled an additional step-out hole, IN023, approximately 50 m west of hole IN018. Emerita advised that that those efforts intersected two zones of massive sulfide and that it is waiting to receive the assays from the testing facility.
The firm provided data from its final in-fill drill holes IN014, IN015 and IN016 which it said all intersected high grades of mineralization. The best reported in-fill results came from Drill Hole IN014, which starting from a depth of 84.7m, intersected 5.7 m of 2.4% Cu, 7.3% Pb, 13.4% Zn, 225.0 g/t Ag and 0.6 g/t Au.
The company stated that work on the geophysical survey is scheduled to resume prior to the end of October. The firm indicated that it plans to mobilize additional drills to accelerate the pace of drilling of the Romanera Deposit, the El Cura and other regional targets and the new geophysical targets. Emerita expects that it will have a total of five (5) drills operating by year-end.
The company's President Joaquin Merino, P.Geo., remarked, "We are excited by the progress to date and particularly to be moving the program into the expansion drilling phase…We are systematically stepping out through the deposit to build the geological model that will meet the requirements for establishing a NI 43-101 compliant mineral resource estimate."
Earlier in the day, Clarus Securities Inc. Research Analyst Varun Arora, MBA commented in a research note that "Emerita Resources' infill drilling has validated the historic resource of 0.8 Mt at 26.5% Zn eq and the ongoing step-out drilling is confirming the significant expansion potential."
The Clarus Securities report noted that that the initial resource at La Infanta was defined as having a 600 m strike length to a depth of 120 m. The analyst pointed out that "the geophysics and geological mapping is suggesting strong potential to more than double the strike extent and more than triple the depth extent."
The analyst stated that several near-term catalysts if realized might provide cause for a re-rating of the company. These include Emerita being granted drill permits for the remaining Iberia Belt West (IBW) land package that includes the Romanera, El Cura and other regional targets. In addition, a favorable ruling in Aznalcollar criminal case would be a big boost for the company as it could possibly raise the firm's market cap by as much as CA$250-300 million.
The report from Clarus stated that, "Emerita offers a rare combination of significantly de-risked, world-class polymetallic projects with excellent infrastructure on the Spanish side of the Iberian Pyrite Belt which is one of the largest volcanogenic massive sulphide (VMS) mining camps globally with numerous majors currently operating in the region."
Emerita announced that, effective Friday, October 22, 2021, its common shares began trading in the U.S. under the ticker symbol "EMOTF" on the OTCQB Venture Market.
Clarus Securities rates Emerita Resources Corp. as a "Speculative Buy" and has a 12-month price target of CA$4.50/share for its shares that trade under the symbol "EMO" on the TSX Venture Exchange. The analyst advised that the CA$4.50 target price does not reflect the value of the company's Aznalcollar public tender which is now in litigation in an administrative court in Spain. Analyst Varun stated that if Emerita receives a favorable ruling in the case and is awarded the project by the court, Clarus Securities would then raise its target price by CA$1.75/share to CA$6.25.
In a separate news release, Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCQB; LLJ:FSE), announced that effective Friday, October 22, 2021, its common shares began trading in the U.S. under the ticker symbol "EMOTF" on the OTCQB Venture Market.
The company explained that "the OTCQB is a U.S. trading platform that is operated by the OTC Markets Group in New York and is the premiere marketplace for early-stage and developing U.S. and international companies." The firm added that to be listed on the OTCQB, companies must be up to date on their reporting requirements and undergo yearly audits and certifications by management. The higher reporting standards provide greater transparency to investors and improve the flow of information, resulting in a better overall trading experience for investors. Emerita advised that its common shares will also continue to trade under the designation "EMO" on the TSX Venture Exchange.
Emerita Resources is a natural resource company headquartered in Sevilla, Spain that is engaged in acquiring, exploring and developing mineral properties in Europe. The firm is primarily focused on exploration in Spain along the Iberian pyrite belt in the southern part of the country. In addition to its technical team based in Spain, the company has corporate offices in Toronto, Canada.
Emerita Resources started the day Friday with a market cap of around $484.4 million with approximately 182.1 million shares outstanding. EMOTF shares opened 4% higher Friday at $2.2389 (+$0.0899, +4.14%) over Thursday's $2.1499 closing price and reached a new 52-week high price Friday morning of $2.4652. The stock traded between $2.2389 and $2.4652 per share and closed for trading on Friday at $2.47 (+$0.32, +14.88%).
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Disclosures for Clarus Securities Inc., Emerita Resources Corp., Oct. 22, 2021
Clarus Securities Equity Research Disclosures
Within the last 24 months, Clarus Securities Inc. has managed or co-managed a public offering of securities of the Company. Within the last 24 months, Clarus Securities Inc. has received compensation for investment banking services with respect to the securities of the Company.
The research analyst and/or associates who prepared this report are compensated based upon (among other factors) the overall profitability of Clarus Securities and its affiliate, which includes the overall profitability of investment banking and related services. In the normal course of its business, Clarus Securities or its affiliate may provide financial advisory and/or investment banking services for the issuers mentioned in this report in return for remuneration and might seek to become engaged for such services from any of such issuers in this report within the next three months. Clarus Securities or its affiliate may buy from or sell to customers the securities of issuers mentioned in this report on a principal basis. Clarus Securities, its affiliate, and/or their respective officers, directors or employees may from time to time acquire, hold or sell securities discussed herein, or in related securities or in options, futures or other derivative instruments based thereon.
Each Clarus Securities research analyst whose name appears on the front page of this research report hereby certifies that (i) the recommendations and opinions expressed in the research report accurately reflect the research analyst’s personal views about the Company and securities that are the subject of this report and all other companies and securities mentioned in this report that are covered by such research analyst and (ii) no part of the research analyst’s compensation was, is, or will be directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.
