Canaccord Reiterates Speculative Buy Rating, $3.70 Price Target For Battle North Gold

On Thursday, Battle North Gold (TSXV: BNAU) reported additional high-grade assay results from their confirmatory drilling program at McFinley and Pen zones. The positive results resulted in Canaccord reiterating both its price target as well as its rating for the company.

The McFinley Zone is located west of the Bateman project. Battle North Gold has completed 1,620 meters of drilling on three different levels, while the Pen zone has seen 2,600 meters of drilling done at one 244 meter level exploration drift. This has the same main host of gold as the Bateman project.

Drill highlights include:

• 2.37m @ 34.01 g/t gold including 0.5m @ 136.00 g/t.
• 2.50m @ 6.88 g/t gold including 0.50m @ 24.10 g/t.
• 0.89m @ 8.85 g/t gold including 0.53m @ 10.60 g/t.
• 0.65m @ 10.90 g/t gold

In a note to investors, Tom Gallo from Canaccord reiterated his C$3.70 price target and Speculative Buy recommendation on the stock, saying “nice drill results suggest a bright future beyond what’s expected with the upcoming Feasibility Study.” He then says that Battle North is completing a drill program at the two zones and are focused on confirming historical drilling and possibly defining a mineral resource.

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Gallo comments that these shallow zones, which are defined less than 300 meters below the surface, could “potentially add additional feed to the Bateman mill in the near future.” These shallow zones will fall outside the feasibility study and provide a potential higher upside later to the mine plan.

“These results continue to support the potential for a future resource at both zones, in our view, as grades are in line with to above previous values,” says Gallo. He then goes onto say that the project is viable and “will be put into production by a very capable management team” and believes that Battle North Gold remains an attractive M&A candidate based on its land package, infrastructure, and tax loss pools.

Gallo gives two near-term catalysts that investors should watch out for, the first being Battle North Gold completing and releasing the results to their feasibility study, which he believes will be finished in the very near term. The second catalyst he is watching for is the resource estimate at McFinley, which is expected to be released in the fourth quarter of this year and the Pen Zone, which is scheduled for release in the first quarter of 2021.

Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.