Radisson Mining Resources (TSXV:RDS) announced positive drill results from two additional holes at its O’Brien gold project in Quebec. Exploration results from the volcanics, in our view, are likely to expand the existing resource, along the western edge. As well, the company announced plans to start a second drill later this week, testing recently identified targets in the Pontiac sediments. We view the progress positively, as the company continues to expand resources in the volcanics and exploration success in the Pontiac sediments have the potential to be game changing for the company. Radisson currently trades at a discount to peers, C$48/oz vs. peers at C$64/oz, which we believe fails to reflect the exploration potential at O’Brien.
Step-out drilling in volcanics continues to suggest resource growth is likely. Hole OB-17-22 intersected 10.3 g/t Au over 3.0m while lower down on the same section, hole OB-17-23 intersected 11.9 g/t Au over 3.0m. This combined with hole OB-16-14 intersected 20.2 g/t Au over 1.5m, also on the same section suggesting continuity to depth. While early days, these holes suggest the resource is expanding west in the area between the 36E zone and the Old O’Brien mine.
Valuation not reflective of Radisson’s growth potential. At C$48/oz, Radisson continues to trade at a discount to peers at C$64/oz. When taking into account the nearby infrastructure, higher grades and the potential for resource expansion that is demonstrated with ongoing drill results, we believe that a company like Radisson ultimately could trade at a premium to peers. In our view, the current drill program, together with the re-logging and selective re-assaying of historic drill core and the digitization of historic data, should provide positive catalysts for the stock and close the valuation gap to peers.
Derek Macpherson | VP Mining Analysis
Victoria Ellis Hayes | Associate
Red Cloud Klondike Strike Inc.
105 King Street East, 2nd Floor
Toronto ON, M5G 1G
Priced as of prior trading day’s market close, EST (unless otherwise noted).
All values in USD unless otherwise noted
Disclaimer
Red Cloud Klondike Strike Inc. is registered as an Exempt Market Dealer in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland & Labrador, and the Yukon. Part of Red Cloud Klondike Strike Inc.’s business is to connect mining companies with suitable investors that qualify under available regulatory exemptions (the “Red Cloud KS Business”). Red Cloud Klondike Strike Inc., its affiliates and associates, and their respective officers, directors, representatives, researchers and members of their families (collectively, “Red Cloud KS”) may hold positions in the companies mentioned in this publication and may buy or sell, or buy and sell their securities or securities of the same class on the market or otherwise. Additionally, Red Cloud KS may have provided in the past, and may provide in the future, certain advisory or corporate finance services and receive financial and other incentives from issuers as consideration for the provision of such services.
Red Cloud KS has prepared this publication for general information purposes only, NOT as part of the Red Cloud KS Business. This document should not be considered a solicitation to purchase or sell securities or a recommendation to buy or sell securities. The information provided by Red Cloud KS for the purposes of this publication has been derived from sources believed to be accurate, but cannot be guaranteed. Opinions or analysis contained in this publication may be subject to change and Red Cloud KS does not undertake to advise the reader of such changes. This publication does NOT take into account the particular investment objectives, financial situations, or needs of individual recipients and other issues (e.g. prohibitions to investments due to law, jurisdiction issues, etc.) which may exist for certain persons. Recipients should rely on their own investigations and take their own professional advice before investment. Red Cloud KS will not treat recipients of this publication as customers or clients by virtue of having viewed this report.
Company Specific Disclosure Details
Radisson Mining Resources Inc. – TSXV:RDS – 1,2,3,4
1) A member of Red Cloud KS team has visited/viewed material operations of the issuer.
2) In the last 12 months, Red Cloud KS has been retained under a service or advisory agreement by the subject issuer.
3) In the last 12 months, Red Cloud KS has received compensation for investment banking services.
4) Red Cloud KS or a member of the Red Cloud KS team or household, has a long position in the shares and/or the options of the subject issuer.
5) Red Cloud KS or a member of the Red Cloud KS team or household, has a short position in the shares and/or the options of the subject issuer.
6) Red Cloud KS or a member of the Red Cloud KS team own more than 1% of any class of common equity of the subject issuer.
7) A member of Red Cloud KS team or a member’s household serves as a Director or Officer or Advisory Board Member of the subject issuer.