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Successful soil samples released by Kivalliq Energy on Wednesday prompted a “buy” rating from Dundee Capital Markets.
Kivalliq Energy‘s (TSXV:KIV) announcement regarding successful soil samples from its Angilak property prompted Dundee Capital Markets to give the company a “buy” rating on Thursday morning.
The company released its soil survey findings from the 275,469-acre, Nunavut-based property on Wednesday after market close, highlighting findings from the Dipole target area as well as the RIB target area.
At Dipole, 237 EL geochemical sample results identified a 3.4-kilometer uranium-in-soil trend with 107 anomalous values between 6 parts per billion and 56.3 parts per billion. In the RIB target area, the company used versatile time domain electromagnetic surveying (VTEM) to confirm the target area. The company also examined 74 EL soil samples, outlining a 3.6-kilometer geochemical trend with anomalous uranium values ranging between 6 parts per billion and 61.9 parts per billion.
David Talbot, vice president of mining and senior analyst at Dundee, said the findings appear optimistic for investors. “While conserving cash in this challenging junior equity and uranium markets, Kivalliq went back to basics and again had success with its grassroots surface exploration program,” he said in a note.
Kivalliq’s release states that the RIB target area is comparable to Dipole in terms of geochemical and geophysical features, and Talbot believes that could suggest a greater future for the areas.
“The uranium-in-soil signatures at RIB and Dipole in particular, are quite strong and suggest a coherent source and potentially wider zones than have been found at Lac 50,” Talbot said.
Talbot also wrote of how management at Kivalliq has been open to joint ventures at the project to help raise cash for exploration of trends, allowing it to get help from “other people’s money.”
As the uranium market moves forward, Kivalliq could benefit from a rising interest in uranium projects.
Securities Disclosure: I, Nick Wells, hold no direct or indirect investment in any of the companies mentioned in this article.
