Fundamental Research has reiterated its "buy" recommendation on Temex Resources (CVE:TME) following the recent update of the gold explorer's Juby project located in the Shining Tree area of Ontario.
Temex Resources is focused primarily on gold projects in northeastern Ontario. The company’s Whitney gold project is held in a 60:40 joint venture with Goldcorp (TSE:G)(NYSE:GG).
It 100 percent-owned Juby Lease property has updated NI 43-101 compliant resources of 934,645 ounces of gold grading 1.30 grams per tonne (g/t) indicated, and 905,621 ounces of gold at 1.00 g/t inferred.
"This updated resource is positive and demonstrates that the Juby property hosts a significant gold deposit," Fundamental Research analyst Siddharth Rajeev said.
In a report, Fundamental Research said that Temex management has indicated that the structure at Juby has a known strike length of 2.8 kilometres and is open at depth and along strike.
"We believe that there is potential for further upside to come from additional resource expansion at the Juby project," Rajeev added.
In May 2011, Temex's management indicated that the company was aiming to increase total gold resources to around 2.0 million ounces.
"We are encouraged therefore by the recent resource estimate which is relatively close to this estimate," Fundamental's Rajeev said.
Temex's recent deal to earn a 100 percent interest in the Golden Lake property contiguous to the west of the existing Juby claims means that Temex will have almost doubled the strike length of the Tyrrell Structural Zone, which hosts the Juby Main Zone, to 4.5 kilometres.
"We believe this acquisition provides further upside and will allow the company to add significant ounces to the existing Juby main zone resource base," the research report noted.
Temex also recently released positive results from ongoing resource definition drilling program at the Whitney gold project in Ontario's Timmins gold camp, including 37.90 g/t gold over 8.80 metres in hole TW11-145; 14.67 g/t gold over 3.8 metres in hole TW11-169, and 4.95 g/t gold over 20 metres in hole TW11-174.
The Ontario-focused explorer has $5.2 million in cash, Fundamental Research said in its note.
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