Probe Metals (PRB-V) Mackie Research Spec Buy Target $2.50
Drilling Expands Monique Area
Yesterday, Probe released more results from drilling at its Val-d’Or East project in northwestern Quebec. We maintain our SPECULATIVE BUY and $2.50/share target price.
Monique Zone: Yesterday’s update reflects the first nine holes of the winter campaign, representing 2,178m of drilling. The holes were collared in the Monique area, which is located 5km east of the main New Beliveau deposit.
Hole 33 extends the depth of the A zone to 550m vertically below surface, whereas hole 41 extends the I zone by 150m laterally west of an historic hole that averaged 14.1 g/t over 9.1m. PRB notes that the new zone intersected in hole 39 runs parallel with the I zone and was intersected at only 25m vertically below surface. Further drilling is planned.
For context, the Monique property hosts an Inferred Resource of 9.13Mt grading 2.25 g/t, for 661,400oz of contained gold.
Of that, 5.58Mt grading 1.71 g/t is considered potentially amenable to open-pit mining methods and 3.54Mt grading 3.11 g/t is considered potentially amenable to underground mining methods.
The remainder of the Val-d’Or East resources are divided among the Pascalis and Corvan trends, with the New Beliveau deposit (on the former trend) being the largest, containing 1.48Moz in 10.82Mt averaging 2.03 g |
