Battle North Gold (BNAU-T) Mackie Research Spec Buy Target $5.50
Yesterday, Battle North Gold (BNAU) released what we view as positive exploration drill results from its advanced Bateman underground gold project in Red Lake, Ontario.
In August 2019, BNAU released a positive Preliminary Economic Assessment on the F2 deposit, confirming its potential to support annual production of 79,510oz over 6.2 years, or 88,675oz at commercial rates.
Life-of-mine cash costs were projected at US$597/oz, or US$579/oz commercially.
Since then, the Company has been advancing the deposit to full feasibility and testing several less-advanced, but proximal zones for potential inclusion at a later date, given the existing mill’s potential to process more material than was assumed in the PEA.
We maintain our SPECULATIVE BUY recommendation and $5.50/share target price, based on the continued use of a 1.0x multiple to our NAV |
