Auteco Minerals Ltd (ASX:AUT) (OTCMKTS:MNXMF) has secured a speculative buy rating and price target of A$0.22 from a recent report by Canaccord Genuity Ltd, off the back of the Carey discovery at the Pickle Crow Project in Canada.
Analyst Tim McCormack and associate analyst Tyson Kestel believe the new discovery, north-east of the main 1-million-ounce (at 11.3 g/t) deposit, has the potential for a high-grade open pit.
“The discovery of Carey and the potential for a high-grade open pit resource is a positive outcome for the economic potential of the project and highlights the prospectivity of the landholding.
“Carey is unique in that it demonstrates relatively shallow, high-grade intersections with thick widths, demonstrating the potential for high-grade open pit mining, in our view.”
Strong drill results
The company recently completed a 45,0000-metre drilling program, with results including:
- 20.4 metres at 5.3 g/t gold from 102.7 metres including 2.2 metres at 39.3 g/t;
- 13.8 metres at 2 g/t from 29.8 metres;
- 16.5 metres at 2.2 g/t from 160.6 metres; and
- 6.5 metres at 4.6 g/t from 86.5 metres.
The mineralisation remains open in all directions on targeted structures, with future drilling to focus on defining continuity within the mineralised zones.
Shaft 3 and 1 mineralisation
New results have extended the known high-grade mineralisation in the Shaft 3 and 1 areas and intersected a previously uncovered shear vein.
- 4.9 metres at 7/5 g/t from 483.2 metres (new structure, shaft 3);
- 3.3 metres at 8 g/t from 836.4 metres (80 metre extension of structure, shaft 3);
- 4.6 metres at 7.5 g/t from 183.5 metres (80 metre extension of structure, shaft 1);
- 1.3 metres at 21.4 g/t from 82.1 metres (80 metre extension of structure, shaft 3); and
- 0.6 metre at 42.9 g/t from 320 metres (80 metre extension of structure, shaft 3).
The new structure was intersected around 250 metres NW of the nearest drill hole with the intersection including multiple occurrences of visible gold.
50,000 drilling program planned
The report noted: “A total of 24 holes remain to be assayed (166 drilled in total) from the 45,000-metre drill program and having successfully completed the key objectives of its strategic work plan, AUT has approved an additional 50,000 metre drill program to be undertaken immediately.
“Four rigs are currently on site and the drill program will be undertaken in parallel with the resource update due next month.
“This should, in our view, generate a steady stream of news flow over the coming months.”
The analysts noted the following potential catalysts going forwards:
- Results from 50,000 metre drill program – ongoing;
- Resource update – July 2021;
- Results from drill testing of Carey and OP potential – ongoing; and
- Regional exploration results; mapping, outcrop sampling and ground magnetics – ongoing.