In a research note titled “There’s Gold Everywhere…” Canaccord Genuity precious metals mining analyst Tom Gallo made Northern Empire Resources (TSX-V:NM, OTC: PSPGF) its top pick in the exploration and development space. Gallo cites Northern Empire’s most recent news release which outlines 17 additional targets in the “well-plumbed Bare Mountain district.” Gallo also points out soil samples from the newly identified Tungsten Canyon target (drill-ready) reveal gold grades of up to 36 g/t Au.
“We believe investors should note the company’s prime land package in one of the world’s best mining jurisdictions along with the development-ready project (Sterling) and growing resource base (Crown Block) as key M&A indicators. A recent flurry of acquisition activity has focused on scalable projects in low sovereign risk locales.”
Gallo goes on to lay out potential re-rating catalysts that are on the horizon:
- Receipt of a plan of operations permit, which would allow the company to ramp up to 50,000 meters of drilling (from 15,000 meters) while on-going drilling could lead to a potentially catalytic resource update.
- The potential for a new deposit scale discovery from one of the company’s many targets.
- The likelihood of consolidation within the region as neighbor Corvus Gold’s flagship property Mother Lode is isolated within Northern Empire’s claim block (collaboration between the two parties will be necessary for future development at Mother Lode).
Finally, Gallo places a C$2.00 price target on Northern Empire shares citing the fact that NM currently trades at roughly .28 x NAV, while recent bids for Dalradian have occurred at .5 x NAV and Arizona Mining at 1.0 x NAV.
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