Broker Eight Capital rated Dalradian Resources Inc (TSE: DNA) a 'buy' after its latest assays from its Curraghinalt gold project in Northern Ireland.
Six underground infill holes averaged 0.86 meters of 30.2 g/t (grams per ton) gold, which was well above the average resource grade of 10.8 g/t of the yellow metal.
Meanwhile, nine step-out holes up to 400 metres west of the current resource envelope all encountered mineralization, averaging 0.69 metres of 34.4 g/t gold.
Patrick F.N. Anderson, the firm's president and chief, described the step-out results as "exciting", showing "continuity" of the mineralisation.
"A resource update is scheduled for late Q4/17 or Q1/18. This will be followed by an updated feasibility study that will incorporate the positive reconciliation results as well as assays from the 2017 drill program," said analyst Craig Stanley.
Dalradian had $34.6mln in cash and $31mln in working capital as at June 30 this year, notes the analyst.
In July 2017, 9.8 million warrants were exercised for proceeds of $14.7mln.
The broker targets C$1.70 for the shares, against a current price of C$1.38 - up 0.73% on the day.