WAF V GRY, page-142

From Market Wired -- http://www.marketwire.com.au/market-moving-stocks/will-west-african-do-an-australian-mines/
Will West African do an Australian Mines
Yesterday we saw shares in Australian Mines more than double from 1.4 cents to 3.3 cents, representing a gain of 135% on the back of positive exploration results from its Dixon gold prospect in Western Australia.
Not only were the grades robust including 10 metres at 8.79 grams per tonne, but investors would no doubt have been buoyed by the fact that the corridor extends for more than 400 m in length and remains open in both directions and at depth.
The geology also sounds positive with iron sulphides disseminated within the deposit. These are often associated with gold mineralisation across the Eastern Goldfields of Western Australia, including the super pit gold mine in Kalgoorlie.
Whether Australian Mines share price has run its race in the near-term remains to be seen, but investors should look out for West African Resources today after it released further high-grade drill results on Wednesday morning.
This company is no stranger to big share price reratings either. Between late February and mid-March its shares increased from 4.8 cents to hit a high of 12 cents, representing an increase of 150%.
While it has retraced slightly in recent days, possibly due to last week’s decline in the gold price there is the possibility it will fire up today after returning further high-grade drill results from the M1 prospect which is part of its Tanlouka gold project in Burkina Faso.
These included an 11 metre intersection grading 43.4 grams per tonne which included a 1 metre section grading 349 grams per tonne.
Importantly these results come on the back of other high-grade returns from the same deposit including intersections of 534 grams per tonne (March 15) and 343 grams per tonne (March 22).
However, arguably the most significant takeaway following the release of these results is that the strike length is now 300 metres providing confidence that there is continuity in the prospect, as opposed to what may have previously been considered as being flash in the pan returns recorded in early stage drill results.
Market Wire caught up with Managing Director Richard Hyde to gain more insight into these impressive results.
He said, “The ultra-grade gold discovery at M1 is transformational for us, given we are consistently seeing grades north of 100 grams per tonne over a currently drilled strike of 300 metres”.
He highlighted mineralisation is open at depth and along strike with step out and deeper drilling in progress. This suggests the possibility of further positive drill results which could provide share price momentum.
On this note Hyde said, “Our geologists are becoming increasingly adept at panning gold off drill cuttings at the drill site which gives us an indication over mineralised zones ahead of receiving the assay results from the lab”.
Analysts at Hartleys are upbeat about the stock. Even prior to these recent results the broker had a buy recommendation on West African with a 12 month price target of 16 cents. The broker is forecasting a maiden profit of $43 million in fiscal 2018 representing earnings per share of 7.9 cents. This implies a PE multiple of 2 relative to the broker’s price target.