Assay results from Newmarket Gold’s Harrier South gold system have confirmed the potential for expansion at the company’s Fosterville Gold Mine in Australia.
In a June 27 press release, Newmarket Gold Inc. (NMI:TSX; NMKTF:OTCQX) announced positive results from a 57-hole drill program intended to define resource extensions at Fosterville. Highlight assays include 22.13 g/t gold over 3.4m from the Harrier base structure and 16.6 g/t gold over 30.5m in the Osprey zone.
The results prompted a pair of analysts to respond to the findings.
In a note published on June 28, Heiko Ihle of Rodman & Renshaw notes that “the targets of the drilling program are directly down plunge from active mining operations, and the Harrier South target is just 1.2 kilometers south of the Phoenix and Lower Phoenix reserves. Given this, we believe the drilling program in the area could further upgrade resources to additional reserves.”
Ihle also mentioned the fact that, in association with drill results, “visible gold” was discovered at Harrier. “It showed up in Hole UDH1559.” the analyst wrote.
Also in a June 28 note, analyst Philip Ker of PI Financial commented that the 2016 drill program “has thus far been aggressive and confirmed positive results” at the site.
“With confirmation of increasing grades at depth down plunge from existing underground infrastructure at Fosterville, we anticipate Newmarket to focus on reserve growth and demonstrate increasing mine life at its flagship operation,” Ker wrote. “. . .With further upside yet to come at Fosterville and other exploration efforts at its operations, we believe Newmarket will continue its re-rating to become valued more in-line with its peers.”
Ihle expressed confidence about the long-term potential of Fosterville, noting “exploration success should be had as the mine continues to prove itself as a top-tier gold asset.”
Ihle also believes that Newmarket’s stock could also benefit from …read more