Greatland Gold price target raised 38% by broker Hannam after Havieron progress
"In our view, the most significant potential catalyst over the next 12 months remains the maiden JORC resource"
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Greatland Gold PLC (LON:GGP), has received a 38% upgrade in its share price target to 17.8p.from Hannam & Partners.
The London-based broker says that (in Havieron) Greatland has exposure to a tier-1 gold asset 'unique' in Australia.
Hannam revised its mineral resource estimate for Havieron to 4.2mln oz gold at 6.4g/t with 120,000 tonnes of copper following the recent definition of three levels and drilling.
The broker also increased its gold price assumption to US$1,950 per ounce from US$1,700oz.
As a result, the value of Greatland’s likely final 30% stake (after the Newcrest farm-in) at Havieron rises to US$709mlm from US$541mln, it said.
Hannam also upped its estimate for Greatland’s other assets including the Scallywag prospect where drilling has just started, to US$100mln from US$50mln.
“In our view, the most significant potential catalyst over the next 12 months remains the maiden JORC resource [ at Havieron], expected before the end of 2020.
“Further increases in the gold price in the current bull market are also likely to have a positive effect on the company’s shares,” said Hannam.
Earlier, Greatland said the start of drilling at the Scallywag prospect will initially focus on high-priority targets within the prospect including Kraken, Blackbeard and London.
Once the initial phase of drilling is completed, Greatland said it expects to drill additional high-priority targets on its Paterson Range East and Black Hills licences including Goliath, Los Diablos and Parlay.
The company said an airborne electromagnetic survey has also commenced, covering 1,033 line kilometres across the western portion of the Paterson project
Shares jumped 8.6% to 13.25p.
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