W Resources “three main mineralised zones” says Northland Capital

Northland Capital partners view: W Resources compilation of the historic data at the São Martinho Gold Project has confirmed the presence of three main mineralised zones; São Martinho West, São Martinho East and São Martinho South. These zones occur as a series of shallow staked lenses with significant assay results including 14m at 7.52g/t Au (POR-96-2), 20.05m at 3.32g/t Au (POR-97-15) and 26m at 2.21g/t Au (POR-96-1). W Resources acquired São Martinho at a minimal cost in Oct-15 and is now in the process of compiling a JORC compliant mineral resource estimate at the Project also at a minor cost.

São Martinho has a historic resource estimate of 328,621oz Au and a compliant mineral resource estimate at a similar level would add significant value to the Company. These latest trench results from Tarouca are high-grade and given its proximity to Régua there is clearly the potential for synergistic benefits.

From yesterday: Golder to prepare JORC mineral resource estimate
n  Following the systematic compilation of data at its São Martinho Gold Project, W Resources has commissioned Golder Associates to Prepare a JORC compliant mineral resource estimate on the Project. The estimate is expected to be published in H216.

n  At the Tarouca Tungsten Project, W Resources has received high-grade tungsten results from its trenching programme, with 15 samples with grades over 0.5% and the highest grade intercept being 0.8m at 11.4% WO3 (TTR063).

n  No change to forecasts, rating or price target.

Year end Dec Revs (£m) Adj. EBITDA (£m) Adj. PBT (£m) Tax (%) Adj. EPS (p) PER (x) Div (p) Net cash (£m) Yield (%)
2013A (0.3) (0.3) (0.0) NEG (0.6)
2014A 1.0 (0.5) (0.6) (0.0) NEG (2.1)
2015E† 0.1 (0.7) (0.7) (0.0) NEG (12.5)
2016E†† 5.3 1.1 0.4 0.0 51.3 (17.9)

Source: Northland Capital Partners Limited. * Northland Capital Partners acts as Joint Broker † assumes a €16m debt finance package is secured, †† assumes a €9m debt finance package is secured

 

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