Top member reports
Company Report
Last edited 3 years ago
PerformanceCommunity EngagementCommunity Endorsement
Performance (42m)
-0.8% pa
Followed by
12
Straws
Sort by:
Recent
Content is delayed by one month. Upgrade your membership to unlock all content. Click for membership options.
#Broker/Analyst Views
stale
Added 3 years ago

Cerro Verde drilling providing "proof of concept" and highlighting Resource potential at Dynasty

Dynasty Gold Project recap: TTM's Dynasty project is located in Southern Ecuador, and features an under-explored epithermal vein system within a 9km long corridor. The project hosts non-JORC Resources of 2.1Moz at 4.5 g/t (see our initiation report, Opening the door in Ecuador), with current drilling planned to inform an updated Resource estimate (JORC) due in the coming months. Longer-term exploration is expected to target depth and strike extensions of vein-hosted mineralisation, testing the extent of "bulk mineable" halo gold mineralisation adjacent to the quartz veining, as well as test for previously unidentified mineralisation under cover.

Strong results from Cerro Verde drilling validate concept and support Resource potential: TTM is currently completing an initial 12,000m Resource drilling program at Dynasty, with assays received from the first 18 holes of the 54-hole program at the priority Cerro Verde zone. The drilling has demonstrated significantly higher vein density, and mineralised haloes up to five times wider than previously modelled. Highlights from drilling include:

• 1.54m at 13.5 g/t from 131m (within 5.68m at 4.63 g/t)

• 25m at 1.3g/t from 19m

• 6.4m at 2.3 g/t within 10.7m at 1.8 g/t from 181m

• 2m at 3.9 g/t within 7.2m at 1.73 g/t from 54m

• 7m at 2.6 g/t from 29m

We further note that some zones have been laterally extended by up to 160m, while deeper drilling has confirmed mineralisation extends to 450m vertical (and remains open). In our view, these results provide an important "proof of concept", with strike/ depth potential, higher vein density, presence of bulk tonnage halo gold mineralisation, and >4km of untested strike pointing to the potential for a significantly larger gold Resource at Dynasty.

High quality Board and management appointments: TTM recently announced it had appointed the well-known, highly experienced mining executive and entrepreneur Peter Cook to its Board, as Non-executive Chairman. Mr Cook is also the Non-executive Chairman of Westgold Resources (WGX:ASX), Non-exec Chairman of Breaker Resources (BRB:ASX), and Non-executive Chairman of Castille Resources (CST:ASX). In addition, Michael Skead has been appointed Executive VP of Exploration. Mr Skead's prior experience includes Director of Geoscience at Newmont, Director of Global Exploration at Goldcorp, and senior roles with Randgold Resources and Dundee Precious Metals. Mr Skead will oversee all exploration, development and evaluation of TTM's project portfolio in Ecuador (including Dynasty, the highly prospective Copper Duke porphyry project, and the Linderos gold project).

Divestment of non-core assets to provide funding for ongoing exploration: TTM completed the sale its non-core Zaruma Gold Mine and Portovelo processing plant in Jul'21, for staged cash consideration of US$15m and a 2% NSR. Sale proceeds are expected to go toward funding ongoing exploration at Dynasty and Copper Duke.

Valuation & Recommendation

Our target price of $0.25 is based on a peer group average derived Resource multiple, and a nominal figure ascribed to the Copper Duke porphyry project. With exploration activity at Dynasty picking up pace, and ahead of initial exploration at the highly prospective Copper Duke copper/gold porphyry project (late 2021/early 2022), we reiterate our SPEC BUY rating.

Source: Canaccord Genuity