Analysts at PI Financial initiated coverage of shares of Silver Bull Resources (NYSEAMEX:SVBL), a junior Canadian explorer with operations in Mexico, in a research note on Wednesday. The firm set a "buy" recommendation on the stock with a target price of 95 cents a share.
Analyst Philip Ker said he believed Silver Bull to be attractive for investors who seek "exposure to both silver and zinc, a project located in a safe mining jurisdiction, significant exploration upside, access to infrastructure, fully funded for 2013 and well timed production to coincide with rising zinc demand and prices."
Vancouver-based Silver Bull is focused on its flagship Sierra Mojada project located in Coahuila State, Mexico.
Ker said that Silver Bull's management estimates that output from the Sierra Mojada mine, one of the largest undeveloped silver deposits in Mexico, could begin in early 2016 via open pit mining methods.
The company has more than doubled its resource size, which presently contains an indicated resource of 167.5 million ounces of silver and 2.19 billion pounds of zinc, he wrote.
Silver Bull aims to complete a preliminary economic assessment on the project in the third quarter.
Continued exploration drilling and delineation of the Sierra Mojada system will continue underground using cost efficient “termite” drill rigs to target further silver mineralization, Ker said.
Silver Bull, which has a market value of approximately $55 million, gained as much as 5 percent to 36 cents in early trading on Thursday.
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