Roth Capital Partners has reiterated its Buy rating on New Pacific Metals Corp (CVE:NUAG) (OCTQX:NUPMF), just days after the miner reported favorable results from infill drilling at its Silver Sand project in Bolivia.
The firm has a price target of C$6.25 on the stock, which is trading around $4 a share in New York and more than C$5 a share in Toronto.
New Pacific Metals announced the data July 13, saying it will be used for detailed metallurgical work ahead of a preliminary economic assessment.
The assays hail from four infill drilling holes at the project and further demonstrate the continuity -- and potential -- of silver mineralization, Roth analyst Joe Reagor pointed out in his note Tuesday.
Highlights of the results included an intercept of 282 meters at a grade of 104 grams per ton (g/t) silver in one hole, confirming prior expectations, Reagor noted.
“While these results are encouraging, we believe NUAG is poised to begin a larger drill campaign later this month or in early August,” he wrote, adding that the company's drill program in the second half of 2020 calls for 20,000 meters (m) of drilling from four rigs.
“We believe this campaign should provide the market with a new series of catalysts beginning later in Q3 2020,” he told investors.
New Pacific suspended its 2020 drill program in late March amid the coronavirus pandemic, having completed nearly 2,400m of drilling at Silver Sand. Field operations are expected to restart following the receipt of authorization from the Bolivian government.
Silver Sand lies around 25 kilometres (km) northeast of the renowned Cerro Rico silver and base metal mineral system near Potosi, Bolivia. Access is relatively easy, with a road distance of 54km to Potosi, of which 27km are paved.
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