Analyst Tom Galo gives NuLegacy Gold, a speculative buy rating and a target price of $0.25 per share, a premium of 108% to the $0.12 closing price on November 29th, the day the report was issued.
Additional Information:
Video Transcript:
I’m Samantha Deutscher for Investmentpitch Media
Today’s buy recommendation comes from Canaccord Genuity.
Analyst Tom Gallo gives NuLegacy Gold, a speculative buy rating and a target price of $0.25 per share, a premium of 108% to the $0.12 closing price on November 29th, the day the report was issued.
NuLegacy is a Nevada exploration company focused on discovering additional Carlin-style gold deposits on its premier district scale 108 square kilometer Red Hill Project in the prolific Cortez gold trend of Nevada.
NuLegacy has what Canaccord views as a prime property location in the Cortez trend in Nevada proximal to Barrick's Cortez and Goldrush mines.
The Cortez mine alone has produced over 20 million ounces and has 10 million ounces in 2P reserves.
Access to the property is via the Cortez mine road which takes visitors around the Barrick operation.
The property is a former Barrick claim block which the company optioned to NuLegacy in 2011 for
$5 million over five years, which represents 2/3 of the current land package.
This was during a time where the large cap companies were in a balance sheet squeeze.
The remaining 1/3 of the land package was purchased from Barrick in 2016 for 32 million NuLegacy shares.
NuLegacy has benefited from the addition of Charles Weakly and Ed Cope.
Since the additions, the company has advanced its understanding of the complicated geologic setting, evident by recent high-grade drill results including 16.9 grams per tonne gold over 8.7 meters.
Charles Weakly, BSc, District Geologist, NuLegacy Gold, stated: “After reviewing all the material this past six months, I’m convinced the Red Hill property has exactly the same stratigraphic column, the controls of mineralisation, geo-chemistry and low-angle structures that are the important conduits for the high grade gold-bearing fluids at Goldrush…just across the valley where I worked the last four years before joining NuLegacy.”
Ed Cope, Director, Evaluations & Acquisitions, NuLegacy Gold, added: “Charles was instrumental in the discovery/addition of more than 5 million ounces reserves averaging ~ 17 g/t Au at the giant Goldstrike and Meikle Carlin-style deposits before transferring to Cortez where he played a key role in the recognition of the Fourmile extension at the massive Goldrush deposit just across the valley from NuLegacy’s Red Hill property.”
The company is currently working on expanding its plan of operations at Serena which currently limits the company from moving further west.
Once the company receives this plan, which could take up to a year, an expanding drill program on Serena can continue.
The company believes under its current plan, which is known as a Notice of Intent, that an additional 12-14 holes at Serena proper can be drilled.
Numerous other high-priority drill targets exist on the Red Hill property which are currently covered by different plans and notices, that allow for extensive drilling.
Tom Gallo, analyst, stated: “We believe the amount of gold intersected in drilling in recent years implies the company is close to the source. Though early stage, we believe that NuLegacy offers investors the most leverage to a new discovery in the region, and though the majority of our valuation is speculative, we believe it is conservative based on our time spent on site. We believe with future exploration success the company could conceptually have 1Moz of gold (CGe 5.89Mt averaging 5.66g/t for 1.07Moz) at this
property which could be uncovered through further aggressive exploration.”
The shares are trading at $0.13.
For more information on the company, please call 604-639-3640, visit their website www.NuLegacyGold.com or contact James Anderson, CEO, by email at james@nuggold.com or
Albert Matter, Chairman, at albert@nuggold.com.
I’m Samantha Deutscher for Investmentpitch Media
