Investors are naturally interested in Solomon Gold (LON:SOLG) and its Fauro project in the Solomon Islands which has the potential for a significant discovery, according to Fairfax Securities.
A 9,900 metre drilling programme is expected to get started on Fauro Island in mid-December.
In a note to clients the broker highlighted the recent sampling success at Fauro, and the promise of upcoming drilling.
“A large number of unusually strong results have been obtained from sampling work done on Fauro in the Solomon Islands,” the broker said.
“Investors are naturally interested in the potential of this for a significant discovery and results from the new drilling campaign will be eagerly awaited.”
Furthermore, Fairfax also noted that the award of East Fauro prospecting license over Masamasa and Piru Islands could double the potential of gold and copper targets.
The broker also commented on Solomon’s other projects.
In Australia it has two key projects, Rannes and Mt Perry.
“The Bania project gave an very interesting 62m at 1.03g/t gold including 24m at 2.08g/t from 16m depth.”
“Work continues at the, wonderfully named, Spring Pig, Flying Pig and other prospects ... This is one Pig that just might fly!” the analyst said.
The analyst highlighted the ongoing work on the promising prospects that form Mt Perry.
In relation to Rannes, the broker believes that the heavy rains that have slowed exploration, should ease soon.
Additionally Fairfax is expecting important news from Solomon’s joint venture with Newmont Mining (NYSE:NEM, ASX:NEM).
“Significant news should come from work done on the Newmont joint venture at Guadalcanal in the Solomon Islands. The timing of the release of this news is dependent on Newmont Mining,” the broker added.
Fairfax also commented on Bellzone Mining (LON:BZM), after it hired TWP Australia and Ausenco Limited as engineering consultants.
The specialist engineers will conduct a detailed feasibility study (DFS) for the Kalia Mine
“Kalia is a large project and it is encouraging to see experience engineering companies becoming involved as well as additional managers to take the project forward,” Fairfax said.
Hochschild Mining’s (LON:HOC) growth path has now become much clearer, according to Fox-Davies analyst Peter Rose said.
Last week Hochschild sold its 6 percent equity stake in Lake Shore Gold Corp (TSX:LSG) for just under C$80 million. It sold 21.5 million shares for C$3.70 each. It initially bought these shares back in 2007, as part of a larger investment in Lake Shore. It made a 37 percent gain on the 21.5 million shares.
This morning Fox-Davies highlighted that the proceeds will be put to work with invested spending on Hochschild’s development projects.
“The funds will be applied to progress the advanced projects Azuca and Inmaculada as well as to secure and develop early stage, highly value accretive projects which have significant upside potential and a clear path to control,” Rose said.
“In addressing our target price we have applied an NPV multiple for the first time,
“We believe that this is now justified since the growth path of the company has become much clearer and following the increase in exploration spending, the average mine
Whilst the analyst maintained his ‘Hold’ rating he also upped his target price from £4.90 to £6.09 per share.
Collins Stewart mining analyst John Mcgloin looked at ATH Resources’ (LON:ATH) results.
“After a difficult year and facing the development costs of two new replacement sites, ATH Resources has today cut its final dividend by 67%,” Mcgloin said.
He adds: “In a stock that has historically been followed for the dividend yield, news of the dividend cut is quite negative.”
With a slightly warmer view, Evolution Securities’ mining analyst Charles Kernot described ATH as ‘modestly attractive’.
“ATH’s final results were in line with our expectations although net debt has not fallen as far as we had expected,” Kernot said.
He added: “ATH Resources has seen a change in management and strategy, and looks modestly attractive. Add.”