Mineral Explorer's Assay Results Confirm a Historic, High-Grade Resource, 'Could Drive a Three- to Six-Fold Increase'

Source: Streetwise Reports   08/17/2021

Clarus Securities Inc. stated in a research report that Emerita Resources Corp.’s initial drill results from La Infanta confirm historic high grades and represent a resource with significant growth potential.

In an August 13 research note, Research Analyst Varun Arora, MBA of Clarus Securities Inc. stated that Spain-focused critical and base metals explorer and developer Emerita Resources Corp.’s (EMO:TSX.V; EMOTF:OTCMKTS; LLJ:FSE) La Infanta project exhibits significant resource growth potential waiting to be unlocked. The analyst claimed that initial drill results from La Infanta are now confirming historic high grades at the property.

The report indicated that Emerita Resources is presently conducting a 5,000-meter, 30-hole drill program at its La Infanta project in southern Spain and that the company has announced the initial assay results from two holes drilled at the site.

The company reported that at a depth from surface of about 60-70 m, “Hole four returned a significant intercept of 7.45 m of 23.9% Zn eq. (with 90g/t Ag and 0.49 g/t Au), including 2.65 m of 58.3% Zn eq. (with 206 g/t Ag and 1.08 g/t Au).” Clarus Securities noted that according to its price deck these results equated to rock value of approximately US$1,540 per tonne.

Clarus mentioned that even though the width of the intercept in hole four was slightly better than the historical averages of 3-6 m, the measured grades were on pace with some of the best historic intercepts including 5.3m of 52% Zn eq., 6.1m of 40.3% Zn eq., and others.

Analyst Arora said that Emerita intercepted near-surface mineralization at a depth of around 15m at hole one. Results from hole one returned lower relative grades but did include two notable intercepts of 4m of 5.4% Zn eq. and 2.8m of 11.1% Zn eq. Arora stated that drilling continues in this area and commented that Emerita’s management team is reasonably sure that testing in this area will confirm numbers similar to previous grades recorded in the range of 26.5% eq.

Emerita’s management plans to drill 10 holes designed to confirm the historic resource estimated at 0.8 Mt at 26.5% Zn eq. The area has already been tested along an approximately 600m strike and down to a depth of around 120m.

Clarus advised that surface sampling and geophysics testing suggest the deposit likely extends well beyond the extent of historic strike and depth boundaries.

The analyst pointed out that to test the boundaries of the mineralization at La Infanta, the company will be carrying out systematic step-out drilling over an approximately 1.2-km strike length to a depth of about 300m. Clarus Securities highlighted that “if successful, this could conceptually drive a three- to six-fold increase in the historic resource (Clarus est. of 2.5 Mt at 26.5% Zn eq.).”

The analyst stated that assay results from six additional holes remain outstanding and are expected to be received with a few weeks. As the company presently is accelerating the pace of drilling with two active rigs, those results too will be in the pipeline when the samples are submitted for testing.

The firm plans to add a third rig in the near future when drilling commences at Romanera, El Cura, or both. The company is awaiting environmental approval (AAU) which it expects to receive in good order.

Clarus Securities currently rates Emerita Resources Corp. as a “Speculative Buy” with a price target of CA$4.50/share. The company’s shares trade under the symbol EMO on the TSX Venture Exchange and closed for trading at CA$1.85/share on August 16, 2021.

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( Companies Mentioned: EMO:TSX.V; EMOTF:OTCMKTS; LLJ:FSE, )