Results Spur Explorer to Add 2nd Rig at Spanish Deposit
Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCMKTS; LLJA:FSE) announced it had added a second drilling rig after intersecting significant new mineralization while drilling at El Cura deposit area of its wholly owned Iberian Belt West (IBW) project in Spain. Find out why one analyst said there's room for the stock to grow.
Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCMKTS; LLJA:FSE) announced it had added a second drilling rig after intersecting significant new mineralization while drilling at El Cura deposit area of its wholly owned Iberian Belt West (IBW) project in Spain.
All three deposits at IBW (La Infanta, La Romanera, and El Cura) are open for expansion along strike and depth, the company said. However, the new results were only from El Cura and more than 600 meters west of El Cura's historic mine workings.
Hole EC013 intersected 10.6 meters grading 1.7% copper (Cu), 0.95 grams per tonne gold (g/t Au), and 35.46 g/t silver (Ag) and was also the deepest and thickest intercept to date on the deposit at about 300 meters vertical depth.
Hole EC012 intersected 3.4 meters grading 1.7% Cu, 3.09 g/t Au, and 49.3 g/t Ag; and hole EC008 intersected 2.6 meters grading 1.8% Cu, 1.51 g/t Au and 73 g/t Ag, the company said.
"These six new drill holes have demonstrated the continuity of the El Cura massive sulfide body with high grades, especially in copper and gold," said Emerita President Joaquin Merino. "They transform El Cura into a very exciting target for the ongoing drill program."
Emerita said additional drilling was being accelerated at El Cura.
"With the high-grade, near surface character of the El Cura mineralization, good potential exists to quickly outline significant tonnage near to envisioned development and processing facilities for the Romanera and Infanta deposits," the company said in a release. "Accordingly, a second rig was mobilized to El Cura and is expected to collar its first hole before month's end."
The drills will work to complete an additional 3,500 meters of drilling over 13 to 15 additional holes, doubling the drill database for subsequent mineral resource estimation, Emerita said.
*Technical Analyst Clive Maund wrote on May 27 that Emerita "blasted higher" and peaked at CA$0.78 on May 17, but Maund said he expected it could still go up. He gave the stock a Strong Buy rating.
"The conclusion is that Emerita Resources continues to be rated a Strong Buy despite its considerable percentage gains this month, especially if we should see a minor near-term correction," he said.
3 Massive Sulfide Deposits
The IBW project hosts three massive sulfide deposits: La Infanta, La Romanera, and El Cura. Last month, the company released an update on its metallurgical testing program at La Romanera and La Infanta showing "excellent averages": 85.6% zinc (Zn) recovery, 62% Cu recovery, and 59% lead (Pb) recovery, obtaining commercial grade concentrates from both deposits.
Technical Analyst Clive Maund gave the stock a Strong Buy rating.Precious metals were not the focus of testing in that phase, the company said. But the data provided insights with respect to optimizing gold and silver, including recoveries of up to 48.6% Ag and 17.2% gold Au in different products.
"Phase II, which has now been initiated, will investigate optimizing gold and silver recoveries as gravitational and/or concentrate products to bring that up to a target of 60% recovery or more," the company said.
At El Cura, the company said it had done detailed geological mapping, as well as geophysical and geochemical surveys across the property, culminating in an initial scout drilling program there. This widely spaced core drilling intersected significant mineralization over approximately 400 meters by 300 meters (strike by dip-length) within a mineralized corridor of at least 600 meters of strike length. One of these initial drill holes, EC007, intersected 2.2 meters grading 2.9% Cu, 2.3% Pb, 4.6% Zn, 2.81 g/t Au, and 82.5 g/t Ag in the western portion of the drilled area.
The Catalyst: Sparking the Green Economy
Many metals are in demand for use in batteries and in other applications as the world's economies attempt to make the switch to greener energy. Electric vehicles (EVs) use as much as four times the copper as gas-powered cars. According to Credendo, demand for red metal could double by 2035.
"The main drivers are the revival in demand from Chinese manufacturers, the rebound of the global economy, and the boom in investments in green technologies (e.g., renewables and electric vehicles) and in AI technologies," the site reported last month.
The hunt for copper "has been accelerating, as companies involved in all parts of the copper supply chain realize the structural supply deficit facing the copper market," wrote Rick Mills, author of the newsletter Ahead of the Herd.
"They understand the need to find sources existing mines, expansions, brownfield projects, greenfield projects, etc. and are making deals to acquire the base metal, which is not only essential to electrification and decarbonization but industry in general," Mills wrote.
Even precious metals like silver play a role. The white metal is the most conductive element in nature and is used to coat electrical contacts in computers, phones, cars, and appliances. It's also an important element in solar technology.
According to the Silver Institute's World Silver Survey, global demand for silver "massively exceeded" supply last year, a deficit that is expected to extend into a fourth consecutive year in 2024.
Mordor Intelligence noted that the white metal is expected to register a compound annual growth rate (CAGR) of more than 5% between 2024 and 2029.
Streetwise Ownership Overview*
Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCMKTS; LLJA:FSE)
*Share Structureas of 6/12/2024Source: Emerita Resources Corp."An increase in the demand for new technological products is expected to help the market expand in the future," Mordor analysts wrote. According to a U.S. Geological Survey report, "27% of the silver produced in the United States was being utilized in electrical and electronic applications."
Ownership and Share Structure
Reuters provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 5.33% of the company.
According to Reuters, Michael Lawrence Guy owns 1.75% of the company, David Patrick Gower owns 1.12%, Joaquin Merino-Marquez owns 0.84%, Catherine Stretch owns 0.65%, and Marilia Bento owns 0.4%.
Institutions own 1.11% of the company, Reuters reported.
This includes Merk Investments LLC 1.11%.
According to Refinitiv, there are 247.32 million shares outstanding with 234.13 million free float traded shares, while the company has a market cap of CA$138.5 million and trades in a 52-week range of CA$0.26 and CA$0.78.
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Important Disclosures:
Emerita Resources Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.For additional disclosures, please click here.
* Disclosure for the quote from the Clive Maund article published on May 27
For the quoted article (published on May 27), the Company has paid Street Smart, an affiliate of Streetwise Reports, US$1,500 in addition to the monthly consulting fee. Author Certification and Compensation: [Clive Maund of clivemaund.com] is being compensated as an independent contractor by Street Smart, an affiliate of Streetwise Reports, for writing the article quoted. Maund received his UK Technical Analysts' Diploma in 1989. The recommendations and opinions expressed in the article accurately reflect the personal, independent, and objective views of the author regarding any and all of the designated securities discussed. No part of the compensation received by the author was, is, or will be directly or indirectly related to the specific recommendations or views expressedClivemaund.com Disclosures
The quoted article represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks cannot be only be construed as a recommendation or solicitation to buy and sell securities.