EDG: New Drill Results Widen Imperial Zone
What you need to know:• EDG reported assay results for two diamond drill holes at the Imperial Zone, intersecting wider than expected mineralized zones.
• Highlight intercepts include 7.93 g/t Au over 7.4m and 3.61 g/t Au over 16.0m.
• The 2023 drill program has concluded with 5,301m completed across 22 drill holes, assays remain outstanding for 7 holes.
• Find our recently published management interview here.
This morning, Endurance Gold Corp. (EDG:TSXV) announced assay results for two drill holes at the Imperial Zone. Both holes intersected high-grade mineralization but more importantly, widened the known zone by 16m from the previous estimate of ~14m to an estimated true width of 30m (Figure 3). Notable intersections include 7.93 g/t Au over 7.4m and 3.61 g/t Au over 16.0m (see Table 1 for full results). The now 30m wide mineralized zone extends over a minimum strike length of 200m and remains open along strike and to depth. We view the results as a strong positive as the doubling of the width of this zone will greatly increase the size of the resource in this area and ultimately make for a less selective mining method in this area. We are maintaining our BUY rating and target price of $0.50/share on EDG.
• Hole-081 returned three intersections with highlights of 7.93 g/t Au over 7.4m, 3.30 g/t Au over 5.1m, and 1.23 g/t Au over 6.0m.
• Hole-082 returned two intercepts including 3.61 g/t Au over 16.0m, and 4.56 g/t Au over 7.3m.
• Notably, the estimated true width of the Imperial Zone in this area is ~30m, widening the mineralized zone from the previous estimate of ~14m.
The 2023 drill program was recently completed with a total of 5,301m drilled across 22 diamond drill holes. This unfortunately came in well below the planned 15,000m 2023 program as a result of wildfires proximal to the drill site causing drilling to shut down for two months. Assays remain outstanding for seven drill holes completed in the Eagle and Crown Zones. These results should be reported by the end of January.
While EDG stock is down ~50% YTD and ~30% over the last six months, we remain encouraged by the drill results reported by the Company and view the pullback as a meaningful buying opportunity ahead of seven more assays to be reported in this program. We would like to highlight that this year’s program has so far been successful in confirming high-grade mineralization at-depth as well as extending the zones along strike (see our previous note here on the 125m extension of the Eagle Zone). We remind readers of the stellar drill results (see top 10 drill results in Table 2 below) reported over the last few years which are some of the best results we’ve seen in Canadian gold explorers, as well as management’s recent inside buying which is highlighted on page 2.
Endurance Gold is engaged in the exploration and development of mineral properties in North America and has not yet determined whether its properties contain ore reserves that are economically recoverable. The recoverability of the amounts expended on mineral interests by Co. is dependent upon the existence of economically recoverable reserves, the ability of Co. to obtain necessary financing to complete exploration and development of its mineral properties and upon future profitable production or proceeds from disposition of its mineral interests.
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