Spanish Company Continues Exploration Success

Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCMKTS; LLJ:FSE) has released assay results from its drilling on the La Romanara deposit in the Iberian Belt West project. The company has indicated that it has plans to release an updated Mineral Resource Estimate (MRE) Wardell Armstrong International has been engaged to complete the MRE.

Emerita is a Canadian-based company with two projects on the Iberian Peninsula: the Iberian Belt West project, which is comprised of La Romanara, La Infanta, and El Cura deposits, and the Nueva Tintillo project.

Assay Results

Emerita has released assay results from its most recent drilling on the La Romanera deposit. The La Romanera deposit is located on the Iberian Belt West, which hosts two other properties of Emerita: La Infanta and El Cura.

Michael Ballanger of GGM Advisory Inc. agrees that silver seems to be a solid, safe option for investors. 

Joaquin Merina, the president of Emerita, said of the project, "These holes are being incorporated into the block model for the forthcoming MRE. Meetings are occurring this week with Wardell Armstrong International, who has been engaged to complete the MRE, to review and refine the block model as we approach completion. Assay data for the remaining few drill holes is being incorporated as they are received."

The highlights of the assay results are as follows:

• Drill Hole LR096's upper lens intersected 0.3% Cu over 5.4m at a depth of 512.6m, along with 1.5% Pb, 3.0% Zn, 1.24 g/t Au, and 80.6 g/t Ag. The lower lens intersected 0.2% Cu, 2.0% Pb, 3.4% Zn, 2.28 g/t Au, and 225.0 g/t Ag over 4.5m at a depth of 518.0m.
• Drill Hole LR112's lower lens intersected 0.2% Cu, 2.3% Pb, 6.7% Zn, 0.83 g/t Au, and 79.9 g/t Ag over 2.3m at a depth of 242.6m.
• Drill Hole LR137's lower lens intersected 0.2% Cu, 0.8% Pb, 0.2% Zn, 1.53 g/t Au, and 68.8 g/t Ag over 3.1m at a depth of 149.9m.
• Drill Hole LR140's lower lens intersected 0.3% Cu, 1.5% Pb, 3.9% Zn, 1.42 g/t Au, and 84.2 g/t Ag over 30.45m at a depth of 632.5m, including 0.2% Cu, 4.0% Pb, 13.8% Zn, and 2.46 g/t Au and 164.6 g/t Ag over 8.1m.
• Drill Hole LR142's upper lens intersected 0.3% Cu, 1.6% Pb, 1.5% Zn, 2.61 g/t Au, and 193.5 g/t Ag over 30.5m at a depth of 517.2m, including 0.5% Cu, 3.6% Pb, 0.4% Zn, 7.54 g/t Au, and 675.7 g/t Ag over 5.40m. The lower lens intersected 0.2% Cu, 3.1% Pb, 9.4% Zn, 1.79 g/t Au, and 141.8 g/t Ag over 7.45m at a depth of 518.6m.
• Drill Hole LR144's upper lens intersected 0.4% Cu, 4.1% Pb, 8.0% Zn, 2.96 g/t Au, and 149.5 g/t Ag over 1.6m at a depth of 91.4m. The lower lens intersected 0.2% Cu, 2.9% Pb, 1.0% Zn, 2.34 g/t Au, and 119.8 g/t Ag over 97.3m.
• Drill Hole LR145's lower lens intersected 0.1% Cu, 1.5% Pb, 2.8% Zn, 2.10 g/t Au, and 86.7 g/t Ag over 2.75m at a depth of 94.4m.
• Drill Holes LR85, LR090, and LR114 encountered only low-grade pyrite with no significant assay results to report.

Why Silver and Gold?

According to analyst Clive Maund, a weakening dollar has made room for silver to rise in value. "Although a temporary dollar rally is looking increasingly likely, the longer-term outlook for the dollar is grim. Thus even though a short-term retreat by silver looks likely, longer term, it is expected to soar. This being, we will be looking to buy any significant near-term reaction, and a breakout above the resistance at the upper boundary of the big trading range shown on our 5-year chart will be viewed as a major buy signal."

Silver appears to be safe haven for investors looking to shore up their finances in the face of a possible turn in the economy.

Michael Ballanger of GGM Advisory Inc. agrees that silver seems to be a solid, safe option for investors. According to Ballenger, "Last year, the next four months were all equal in seasonal strength, so given that silver has already weathered the storm of being the second-weakest month of the year, adding to the metals appears to be a solid move." Gold and silver are trending upwards and remained steady in similar seasonal conditions last year so that investors might lean on the precious metals as steady options.

Catalysts

Clive Maund rates Emerita as a strong option for investors looking to get into silver: "The charts for Emerita Resources Corp. look increasingly positive . . . with a trend of higher highs, higher lows, and momentum swinging positive, the company appears to be readying for a new bull market . . . Emerita is a Buy here."

Emerita has a number of catalysts to watch. Emerita hired Ian Parkinson as the Executive Vice President of Corporate Development and Capital Markets. The company expects his experience in executive roles and in sell-side mining analysis to bring significant value to the organization.

Recently the company had 15 drill rigs in operation with a NI 43-101 projected to release in Q2 2023. The company hopes to define a large high-grade polymetallic resource. The company is expecting a resource update in Q2 of 2023 and metallurgical testing results in H2 of 2023.

Clive Maund said, "The charts for Emerita Resources Corp. look increasingly positive . . . with a trend of higher highs, higher lows, and momentum swinging positive, the company appears to be readying for a new bull market . . . Emerita is a Buy here."

Management plans to advance the Iberian Belt West with a PFS expected by year-end 2023. Environmental baseline studies started in April of 2022, and Emerita expects to submit the application for an exploitation permit in Q2 of 2023, with approval estimated in 2023.

Recent discoveries on the company's properties include an alteration zone between El Cura and La Infanta. El Cura may also host a high-grade copper deposit.

A court settlement for the Aznalcollar public tender case is expected to conclude in Q2 of 2025. Aznacollar is one of the largest undeveloped zinc assets in the world and is estimated to contain 73 megatons of historic reserves at the Los Frailes deposit. 

The original mine, which was a past-producing open pit mine, contained 91 megatons and has one other known mineralized zone yet to be drilled.

Ownership and Share Structure

Management and insiders own 15.17% of Emerita Resources. According to Reuters, Chairman Lawrence Guy owns 1.22% with 2.52 million shares, CEO and Director David Patrick Gower owns 1.21% with 2.51 million shares, President and Director Joaquin Merino-Marquez owns 0.98% with 2.03 million shares, Director Catherine Stretch owns 0.73% with 1.50 million shares, Michael Lawrence Guy owns 0.54% with 1.12 million shares, Director Marilia Bento owns 0.48% with 1.00 million shares, and Damian J.D. Lopez with 0.13% with 0.28 shares.

16.85% of the stock is held by institutional investors. 2176423 Ontario, Ltd. owns 9.87% with 20.45 million shares, Merk Investments LLC owns 1.33% with 2.75 million shares, and Sprott Asset Management LP owns 0.13% with 0.26 million shares.

The company reports no strategic investors, and the rest is with retail investors. 

The company has CA$23.63 million in the bank as of June 30, 2022, and reports no monthly burn rate or monthly drilling cost.

Emerita has a market cap of CA$166 million. There are 207.32 million shares, 8.8 million warrants, and 18.85 options. The company trades in the 52-week period between CA$0.56 and CA$1.88.

Important Disclosures:

1) Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.

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