On Wednesday, BMO Capital Markets maintained its Outperform rating on Prime Mining Corp (PRYM:CN) (OTC: PRMNF), while increasing the stock's price target from Cdn$4.25 to Cdn$4.50. The revision follows the company's announcement of an updated mineral resource estimate at its Los Reyes Project, situated in Sinaloa, Mexico.
The updated resource estimate revealed a significant indicated resource, including 49.0 million tonnes at 1.39 grams per tonne gold equivalent (g/t AuEq), which translates to 1.5 million ounces of gold and 54.0 million ounces of silver. Additionally, the inferred resource comprises 17.2 million tonnes at 1.48 g/t AuEq, resulting in 0.5 million ounces of gold and 21.6 million ounces of silver.
The analyst from BMO Capital highlighted the potential for further expansion of the resource at Los Reyes, noting that the project remains open both along strike and at depth. This suggests that future exploration could lead to the discovery of additional resources, enhancing the project's value.
The positive outlook on the resource estimate and the possibility of expansion underpin BMO Capital's decision to raise the target price for Prime Mining's shares. The firm's Outperform rating indicates confidence in the stock's potential to perform well relative to the market or its sector.
Investors and stakeholders of Prime Mining Corp can look forward to potential growth opportunities as the company continues to explore and develop the Los Reyes Project. The increase in the price target reflects the updated resource estimate and the analyst's optimism about the project's expansion prospects.
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