gold co drilling plus release results

Hartleys initiated coverage in August with a 41c target,as part of the recent DFS, Cortona has completed resource infill and extensional drilling, with a new resource estimate expected anytime soon.

Would expect that valuation to be much higher now, watch this space....


Initiate Coverage with a Speculative Buy
We see Cortona as a good quality explorer transitioning through to gold
producer via the development of Dargues Reef. The Dargues Reef ore body
is relatively wide, at an average width of 6-7m allowing for efficient
mechanised mining methods with low mining dilutions. In addition, high
grades and excellent metallurgical characteristics enabling high recoveries
(>95%), bode well for low operating costs, ensuring good margins.
The Company will have steady news flow over the coming months, including
a resource upgrade, on-going drill results from exploration and the release
of a DFS which is expected to be favourable. We have a preliminary
valuation of A$70m (ignoring funding) which is above the current market
capitalisation of A$28m. We note that that using the current shares on issue
this equates to 41cps. We initiate coverage of Cortona Resources Limited
with a Speculative Buy recommendation.