results, page-2

Results should be coming soon. I topped up today. Here's a cut and paste of a note from Cannaccord BGF from last week:

PAPILLON RESOURCES LIMITED (PIR:ASX)

Price: $1.19 | Market Cap: $401m | Recommendation: SPEC. BUY | Target Price: $2.30

Mining & Metals: Precious Metals & Minerals

COULD THERE BE ANOTHER FEKOLA?

Investment Perspective

In our view, PIR’s ability to raise such a significant sum in a difficult equity market for earlier stage gold projects is evidence of the quality of the company’s Fekola project in Mali. The raising should now be sufficient to take the company through to completion of a DFS. In the meantime, recent exploration updates continue to highlight the potential to increase the already impressive resource, while the recently identified anomaly to the south presents as an outstanding drill target. Could this be another Fekola-sized discovery in the making?

Fekola is rapidly advancing through economic assessment with a PFS due in April/May ’13, and a DFS expected to commence immediately after. We continue to rate PIR among the top emerging gold developers and maintain our SPECUALTIVE BUY rating.

Investment highlights

PIR announced an exploration update in early March which highlighted the potential for additional resources at Fekola. Drilling results from outside of the current 4.2 Moz resource intersected additional wide zones of gold mineralisation. In what looks to be an exciting exploration target, geophysical studies have also identified an IP anomaly approximately 1.4 km south of the main resource, which demonstrates a similar signature to that at the 4.2 Moz Fekola deposit. This is a high priority drilling target and is currently the focus of exploration drilling.
We expect a further exploration update in the near term relating to drilling results from other targets along strike to the north of the existing resource at Fekola. Other newsflow is expected to include PFS level metallurgical test work results (re-examining and confirming previous work) and completion of the PFS in April/May.
PIR also recently announced that it has completed an equity financing, raising a total of A$52.9m at an issue price of A$1.34 per share. Funds raised from the issue are to be applied to the Fekola project in Mali. These include on-going exploration and drilling, completion of the PFS and DFS, permitting, early site works as well as some long lead items and general working capital.
Maintaining SPECULATIVE BUY rating; TP revised to A$2.30