Northland Capital said today the significant potential of Alexander Nubia’s (CVE:AAN) Hamama VMS deposit in Egypt is already being realised and repeated its ‘buy’ recommendation on the stock.
The Canadian precious and base metals explorer yesterday reported “exceptional” results from deep surface trenching, which it said confirmed the previously reported significant gold mineralisation at surface in the Western VMS zone.
The company has so far discovered 34 VMS lenses below the main VMS Horizon that has been traced over a strike length of three kilometres, which Northland said was comparable to the strike length of La Mancha Resources’ Hassai deposit.
Analyst Ryan Long also compared the assay grades reported form the oxidised zone to both Nevsun Resource’s Bisha deposit and Sunridge Gold Corp’s Amara deposit.
He noted that La Mancha and Nevsun have market caps of C$320 million and C$704 million respectively, while Sunridge is valued at C$38 million compared with Alexander’s current market value of only C$4 million.
“We continue to see the significant blue sky potential of the Hamama project,” said Long.
Northland repeated its ‘buy’ recommendation on the stock with a price target of 12.4 Canadian cents per share, which represents a significant premium to the company’s current price of four cents per share.