AQI (ASX) New sub-holder: Bank of Nova Scotia

Originally posted by MetalMad ↑

from Euroz

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1 Alicanto Minerals Ltd (AQI $0.28) Speculative Buy

2

Column 1Analyst

| Date| Price TargetJon Bishop| 04^th/10/16| $0.36/sh[/table]
3 New Mineralised Structures at Arakaka
Key Points
AQI has announced initial results from the Stage 1 reconnaissance diamond drill program as part of the Barrick farm-in;
Approx. 2,600m of drilling for 17 holes concentrated on a 5km by 1.5km segment of the 12km long Arakaka Main Trend and identified three major mineralised structures: “Purple Heart”, “Valley” and “Central Structures”;
Five holes returned significant hits including:
o 5.1m @ 3.97g/t (from 71m)
o 2.0m @ 1.46g/t (from 58m)
o 9.7m @ 1.44g/t; inc. 2.0m @ 5.23g/t (from 159m)
· Encouragingly this reconnaissance program also identified structural contacts and associated alteration consistent with what is interpreted to be an extensive gold bearing hydrothermal system, with the capacity to host significant bulk scale gold deposit(s);
· The JV has commenced a 3000m follow-up RC drilling program comprising tight drill spacing to better define the three new mineralised structures.
Investment Case
In our view, today’s results – based on regional, first pass, wide spaced, reconnaissance drilling – are highly encrouraging. Three new structures in a 5x1.5km area, with structures and alteration consistent with bulk tonnage style gold deposits is an outstanding outcome. The results are clearly encouraging for Barrick who have now follow-up with a 3000m in-fill RC program with a view to 2017 drill targets.
With a tight capital structure, excellent cost focus and technical acumen in frontend greenfield gold project prospect generation, we view that AQI is a relatively cheap and low risk gold exploration play that will any amount of drilling success, can reward investment with handsome returns. We set a $0.36/sh price target, noting that with any further commercial success with or without drilling success and set against a favourable macro, AQI’s relatively low market capitalisation can see it outperform its peer group. Speculative Buy.
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Thanks for posting this, was wondering what Euroz's take on this was, they initiated coverage around 19c with a target of 36c so looks like they've reaffirmed that guidance.

Wouldn't be surprised if they are a net buyer in the short term if the price moves down much further.

No.	Vol.	Price($)
1	25080	3.1¢

No.

Vol.

Price($)

25080

3.1¢

Price($)	Vol.	No.
3.2¢	20962	1

Price($)

Vol.

No.

3.2¢

20962

No.	Vol.	Price($)
1	300000	0.016
2	536507	0.015
1	150000	0.014
4	564614	0.013
3	203500	0.012

No.

Vol.

Price($)

300000

0.016

536507

0.015

150000

0.014

564614

0.013

203500

0.012

Price($)	Vol.	No.
0.018	40000	1
0.019	13276	1
0.020	209964	2
0.025	136456	2
0.026	5780	1

Price($)

Vol.

No.

0.018

40000

0.019

13276

0.020

209964

0.025

136456

0.026

5780

(20min delay)
Last 3.1¢		Change -0.002(6.06%)		Mkt cap ! $17.20M

Open	High	Low	Value	Volume
3.3¢	3.3¢	3.1¢	$17.03K	534.5K

Thanks for posting this, was wondering what Euroz's take on this...

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