FBN est toujours aussi "bullish" sur WDO. Cible: $4,75
Voici leur dernière analyse faite par Don DeMarco, (416) 869-7572, don.demarco@nbc.ca :
Confidence in Kiena Up-Plunge Increasing
Added 50m Up-Plunge Length with +425m in Sight
Kiena A Zone extended 100m. WDO released assays from 10 of 16 holes/4,200m of infill drilling and up/down plunge testing of the Kiena Deep A Zone, adding to the database of 23,000m used to develop the Dec. 12 Maiden resource. Today’s results extend the Kiena A plunge length by 100m to 500m (was 400m), adding 50m up-plunge and 50 m downplunge.
Visibility for an incremental ~100k oz. All things equal, adding 25% to the plunge length of Kiena A, offers visibility for ~85k oz resource accretion, i.e., a 25% boost to the 340.4k oz Maiden resource endowment. Yet we already factor ongoing resource accretion as WDO continues to test a potential ~1.2 km Kiena Deep plunge length. For Kiena, we model 1.2 mln oz contained for production of 104k oz/ yr over an 11-year mine life.
Higher confidence in up/down-plunge potential. What's encouraging to use is that WDO is showing increased confidence in a 425m up-plunge segment beyond the 50 m of up-plunge length added today. We view this as positive given that extending mineralization up-plunge offers positive implications on minimizing development capex and increasing throughput early in the mine life.
Grades remain elevated. From today's results we calculate an average grade of 15.7g/t, cut at 90 g/t (vs. uncut 26.4 g/t) over an average true width of 4.1m (cut grade x width = 64g/t-m) which compares favourably versus the Kiena Deep Maiden resource grade of 10.95 g/t (Inferred 11.43 g/t, M&I 9.95 g/t) and minimum width of 3 m. The best hole in terms of grade x width was 6384A delivering 33.7 g/t over an exceptional 15m true width (g x w = 425 g/t-m).
Kiena Deep 43-101 Report filed. Separately, WDO announced Friday it filed the technical report for the Kiena Deep Maiden resource (as at Dec. 12, 2018). The report recommends advancing to the PEA stage, as expected, with additional exploration drilling, underground development and metallurgical testing (preliminary results suggest 99% at Kiena). Noting the high visible gold, the study recommends testing gravity recovery methods, which offers potential for lower-cost processing (NBF C$35/t).
Maintaining Outperform rating and $4.75 tgt. Next up, WDO to continue infill/extension testing with five rigs operating as part of 50,000m drill program in 2019. Our target is based on 1.0x our NAVPS of C$4.72/sh. Trading at P/NAV 0.97x (peers 0.77x). |
