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Monday, 1 October 2012
Stonecap keeps SilverCrest Mines at "Outperform" after La Joya update
Capital markets firm Stonecap Securities has kept its "Outperform" rating on SilverCrest Mines (CVE:SVL) after the company released an additional data from its Phase II drilling program at La Joya, Mexico.
Stonecap also kept its $3.75 price target.
"SilverCrest provides investors with immediate and growing cash flow from its Santa Elena mine as well as exposure to the exciting potential bulk tonnage La Joya project," Stonecap mining analyst Christos Doulis said.
"The expected resource update at La Joya in Q4 of this year could act as a significant catalyst for SilverCrest shares."
Amongst the drilling highlights, SilverCrest said that on the main trend Drill Hole LJ DD12-65 intersected 157 metres grading 52 grams per tonne (g/t) silver, 0.24 g/t gold and 0.35% Cu while drill Hole LJ DD 12-71 from the SE extension intersected 126 metres starting from surface grading 13 g/t silver, 0.4 g/t gold and 0.1% Cu.
Surface sampling in the central and southern areas of the trend highlighted the potential for higher grade material near surface with 99 metres grading 116.8 g/t silver, 0.32 g/t gold and 0.63% Cu.
Stonecap's Doulis added: "...at the current SVL share price we believe investors are getting the Santa Elena operation at a discount relative to its ultimate value and are not paying anything for the La Joya project."