Analyst Nicholas Campbell of Canaccord Genuity is maintaining his rating on shares of Batero Gold Corp. (BAT.V) as the company released promising drilling results from its Colombian Batero-Quinchia mine, The Globe and Mail reported.The Globe said he is expecting an initial resource of at least 7 million ounces of gold, with longer-term potential for the project to develop into a 10 million ounce gold resource.Canaccord Genuity maintained its “speculative buy” rating and 12-month target price of $10 on the stock.
Here’s a NR from BAT.v this morning that puts the resource at 3.5m oz gold. So half of CampbellSoup’s wild-assed guess, but it then gets worse as the grade is 0.44 g/t Au and the cut-off is 0.16g/t on $1500/oz gold (or if you like, $7.71 per tonne of rock shifted). Ugh.
Here’s a price chart. How’s that $10 spec buy target looking these days, Soupy?
Here’s an owl:
And by the way, we congratulate Batero Gold (BAT.v) on closing a $7.2m bought deal at $2.10 last November and also congratulate Canaccord, what with that brokerage running the financing.