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News Release - January 27, 2015 5:40 PM ET 

 

 

Aurvista Gold Corporation Issued Significant Upside Market Valuation In Research Report

  

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Q1 2015 Report, $0.25 - $0.50/share target

NEW YORK, NY, January 27,  2015 /Sector Newswire/ - Aurvista Gold Corporation (TSX-V: AVA) (US Listing: ARVSF) is identified in a newly issued research report by Market Equities Research Group with several potential catalysts that exist in 2015 with potential to result in $20-$50 million market cap for AVA.V. Aurvista currently has a resource of 3 million ounces gold (in all categories), it has 69.5 million shares outstanding and is trading near 5 cents. This comprehensive report places a 12 month price target on shares of AVA.V at C$0.25  to C$0.50 based on key valuation drivers which surround the fact the Company is actively working to improve economics to bring its Douay West gold zone to production. Aurvista is also expected to execute on a plan to expand on 3 million ounce gold resource and explore a large 20 km-long land position in Quebec’s prolific Casa Berardi Fault (Abitibi Gold Belt).

 

Should the company increase mineable resources for Douay West and demonstrate enhanced economics for the project through 2015, it would not be unreasonable to see a valuation for the project at $20 million.  With the new targets, should the company demonstrate the potential for an entirely new system, or perhaps a significant VMS system as currently envisioned, the company could see some degree of blue sky potential be realized. There is also very significant option value associated with the Porphyry deposit. Assuming increasing gold prices, this ~3 million ounce resource, if shown to be economic, offers potential to be a true company-maker. For these reasons, in view of Aurvista’s current market cap of ~CDN$3.8 million, the company appears undervalued and offers significant upside with favorable risk-reward characteristics.

 

The full research report may be found at http://sectornewswire.com/Report-AVA-0127-2015.pdf online.

 

Aurvista's principal asset is the Douay Gold Project, consisting of 221 contiguous designated wholly-owned claims totaling approximately 11,430 hectares (114.3 km2) plus 32 contiguous designated joint venture claims totaling approximately 1,194 hectares (11.9 km2) located on the Casa Berardi Fault in northern Quebec. The Douay Project contains an NI 43-101 compliant Mineral Resource of 114,652,000 million tonnes at 0.75 g/t gold (2.8 million oz of gold) in the Inferred category and 2,689,000 tonnes at 2.76 g/t gold (238,433 oz of gold) in the Measured and Indicated category, at a cut-off of 0.3 g/t gold.

 
The company has recently completed a Preliminary Economic Assessment for the Douay West deposit, originally discovered in 2004. Results were positive – at US$1,350 gold, the combined open-pit / underground operation showed a pretax NPV(5%) of $25.0-million and a post-tax NPV(5%) of $16.6-million. The pretax internal rate of return is 55% and the post-tax IRR is 40%. The Life of Mine (LOM) cash operating cost are C$800/oz of gold, and LOM all-in sustaining cost are C$1,195/oz of gold. The PEA proposes a mine plan for both the open pit and underground scenarios using a production rate of 900 tonnes per day of mineralized material. The PEA schedule assumed mining 419,000 tonnes of mineralized material in the open pit at an average grade of 3.16 g/t gold (at a cut-off of 1.17 g/t gold). The underground operation would mine 133,000 mineralized development tonnes at a grade of 4.57 g/t gold and 608,000 stoping tonnes at a grade of 4.83 g/t gold (at a cut-off grade off 3.25 g/t gold). The PEA noted potential at depth but did not include resources below 400m, recommending 8 additional drill holes (including an extension of hole 84666-N. The PEA also It is recommended that a separate analysis be developed for an “all underground‟ mining operation (note – an all-underground scenario was the subject of a highly positive PEA in 2009).

 
Management is now proceeding on two fronts: 1) improving project economics through drilling to expand resources (Phase I successfully expanding open pit resources to the northwest, and the upcoming Phase II program targeting additional underground resources), and 2) investigate several of the exciting new targets recently identified through a reinterpretation of the 2011 mag / EM geophysical survey -- 25 additional targets were uncovered along with one very large VMS target (6 km long, adjoining the known and historically explored area containing the Douay Style Mineralization - DSM).

 

Summary of key value drivers:

 

1) World Class Location: Douay is located in the Abitibi Greenstone Belt, the 2nd most prolific gold belt in the world, producing over 200 million oz of gold since the early 1990s. Exploration to date has identified 8 known gold deposits at Douay. There is similar regional, local geological settings between Aurvista’s Douay gold deposit and the Canadian Malartic Deposit of Yamana and Agnico Eagle Mines (150 km away).

 

2) Underexplored Property, 10M oz gold potential: The Douay property is large, and only 5 km of the 20km trend has received any meaningful drilling to date. Management believes there is potential for 5 – 10 million oz at this camp-scale property and is expected to be tested through 2015.

 

3) Continue to Advance Douay West: Management is now drilling Douay West. The Phase I program successfully expanded shallow resources for the open pit and the upcoming Phase II program is targeted to increase underground resources. A Preliminary Feasibility Study will be initiated in 2015 to continue to move this deposit forward towards production.

 

4) Potential at New Targets: Because there is considerable overburden at the property, gold deposits have been discovered through drilling targets identified largely through geophysics (mag, E-M). The property is seriously unexplored (only 10km of 20 km trend) and the recent reinterpretation of a property-scale mag / EM survey completed in 2011 has resulted in some exciting new targets:

  

   A) 25 new gold targets, whose signatures mirror those at existing deposits, and
   B) a very large, VMS style, 6 km long target which adjoins the known Douay mineralization (a 10 km long x 3 km wide block.

 

Several Potential Value Catalysts in 2015:

 

   • Successful Phase II drilling at Douay West.

   • Identification of large new gold / base metal targets over the remaining 20 km trend.
   • Developing an economic “all-underground” scenario as per PEA recommendations.
   • Favorable PFS.
   • Increasing gold price offers tremendous upside value from ~3 million oz. Porphyry Zone.

 

The full research report may be found at http://sectornewswire.com/Report-AVA-0127-2015.pdf online.

  

 

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