🕐21.09.11 - 19:54 Uhr
MACKIE RESEARCH CAPITAL MORNING COMMENT (CKG)
MRCC Research Comments
In Todays Issue
.
CHESAPEAKE GOLD CORP.
Mackie Research Capital - Morning Comments
Mining
CHESAPEAKE GOLD CORP.
- (CKG - CAD$15.49)
Target Price: CAD$42.00 Recommendation: BUY
Metallurgy Proves Successful!
CKG released its metallurgical results from its test bulk-sulphide
concentrate from its flagship gold-silver-zinc Metates project in Mexico.
The testing confirmed the following average recoveries: 90% for gold
(ranging from 85-94%); 77% for silver (ranging from 71-84%) and 81% for zinc
(ranging from 77-86%).
These results are inline with our expectations of 85%
overall recoveries for gold, silver and zinc.
These results as significantly de-risking the Metates project as it shows:
(1) a mix of both mineralization types (intrusive and sedimentary) found at
Metates grading on average 0.7 g/t gold, 24.6 g/t silver and 0.25% zinc is
able to be floated into a bulk-sulphide concentrate at a relatively coarse
grind of 80-100 microns to achieve recoveries of 95% gold, 83% silver and
88% zinc; (2) 99% sulphide oxidization can be achieved in the autoclave/POX
unit ; and , (3) cyanidation can achieve recoveries of 95% for gold, 87% for
silver and 85% for zinc, given a relatively low grade bulk-sulphide
concentrate grading 3.2 g/t gold, 112 g/t silver and 1.17% zinc.
Inputting the new recoveries into our model increases our target price for
CKG to $42.00 (from $39.00) based on 0.5x our NAVPS of $83.87 (was $77.96).
By Barry Allan -
2011/09/21
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