Commodity expert and editor of the renowned gold newsletter Brien Lundin reports in the October edition of his publication that he has discovered a gold and silver explorer that is not only available at a bargain price, but also meets all the criteria to benefit from the current market situation.
We’re talking about the Canadian Sonoro Gold (WKN A2QCST / TSXV SGO), which has two projects in the Mexican state of Sonora, with the Cerro Caliche project being particularly promising, according to the Gold Newsletter.
Cerro Caliche already has a resource of 200,000 ounces equivalent gold in the inferred category that is near surface and potentially open pit mining. And Sonoro is already in the process of developing this resource with the help of a heap leach pilot plant. According to the Gold Newsletter, if the company succeeds in doing so, the company will be able to generate cash flow in the short term while the company is assessing the expansion potential of Cerro Caliche.
This potential is significant and consists of both lower risk drilling to expand the near surface oxidic portion of the resource and very risky drilling that Sonoro intends to use at depth to test the project for high grade gold mineralization.
Currently, it says in the Gold Newsletter, the minable target is potentially up to 100 million tons at an average of 0.5 g / t gold. In addition, there is the potential for higher grade material at depth as previous work at Cerro Caliche would suggest that the project has a section of high grade mineralization similar to that at Premier Gold’s nearby Mercedes mine.
With a recently completed and oversubscribed financing, Sonoro added $ 8 million, which, according to the Gold Newsletter, is more than enough capital to fund an aggressive drill program to expand the oxide resource at Cerro Caliche and test the depth potential.
In fact, Sonoro Gold is now embarking on a large, 50,000 meter drill program that will include between 10,000 to 20,000 meters of core drilling at greater depths and 30,000 to 40,000 meters of backwash drilling.
Since work on the pilot plant is now continuing in parallel and the San Marcial project offers a certain additional exploration potential, Sonoro Gold is in a great starting position to deliver “market-moving” results in the next six months. At the current level, the Gold Newsletter regards Sonoro Gold as a “strong buy”.
The experts from Kaiser Research Online have also carried out a detailed analysis of Sonoro Gold and come to a possible valuation of approx. 1 – 2 CAD per share. An increase to 1.00 CAD alone would mean a potential of more than 257% from the current price!
With the announcement of the new strategy and the successful financing, Sonoro has already gained significantly in value since the Corona low in March and is trading near the 52-week and multi-year high of CAD 0.34. If you believe the experts, that is far from the end.
Risk warning: GOLDINVEST Consulting GmbH publishes on https://goldinvest.de Comments, analysis and news. This content serves exclusively to inform the reader and does not represent any kind of call for action, neither explicitly nor implicitly are they to be understood as a guarantee of possible price developments. Furthermore, they are in no way a substitute for individual, expert investment advice and represent neither an offer to sell the stock (s) in question, nor an invitation to buy or sell securities / journalistic texts. Readers who make investment decisions or carry out transactions on the basis of the information offered here act entirely at their own risk. There is no contractual relationship between GOLDINVEST Consulting GmbH and its readers or the users of its offers, as our information only relates to the company, but not to the reader’s investment decision.
In accordance with Section 34b WpHG and Section 48f Paragraph 5 BörseG (Austria), we would like to point out that GOLDINVEST Consulting GmbH and / or partners, clients or employees of GOLDINVEST Consulting GmbH hold shares in Sonoro Metals and that there is therefore a conflict of interest. GOLDINVEST Consulting GmbH also reserves the right to buy or sell shares in the company at any time. In addition, GOLDINVEST Consulting GmbH is rewarded by Sonoro Metals for reporting on the company. This is another clear conflict of interest.
Note: PERSONAL-FINANCIAL.COM publishes analyzes, columns and news from various sources in this section. PERSONAL-FINANCIAL.COM AG is not responsible for content that is recognizable as being posted by third parties in the “News” area of this website and does not adopt it as its own. This content can be identified in particular by a corresponding “from” label below the article heading and / or by the link “To read the full article, please click here.”; The named third party is solely responsible for this content.