Vancouver, British Columbia--(Newsfile Corp. - December 7, 2017) - Today's buy recommendation comes from Fundamental Research Corp. Analyst Sid Rajeev gives Mammoth Resources (TSXV: MTH) a buy rating and a fair value estimate of $0.41 per share, a premium of 412% to the $0.08 closing price on November 21st, the day the report was issued. Mammoth's flagship asset is the Tenoriba property located in the heart of the Mexican Sierra Madre, in southwestern Chihuahua State, Mexico.
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The Sierra Madre Occidental range includes one of the world's largest precious metal regions, running from southeast Arizona, U.S., to Guanajuato, Mexico, a distance of 1,500 kilometres. It has been mined for hundreds of years, with the region hosting several well-known mines and advanced stage deposits.
The Tenoriba property, covering 5,951 hectares, is comprised of four concessions. The property was previously drilled in 2008 by a predecessor company. Of the 15 holes drilled, 10 holes reported potentially economical gold intersections, with the best results being 45.9 grams per tonne over 1.9 metres, 2.26 grams per tonne over 11.5 metres, 1.03 grams per tonne over 34.4 metres, including 2.82 grams per tonne over 7.4 metres. The longest intersection graded 0.5 grams per tonne over 66 metres.
Analyst Sid Rajeev stated: "The property has a long history of artisanal mining, but limited modern exploration. Based on the historical work performed on the property, which included surface mapping, sampling, soil and rock geochemical analysis, and drilling, the project shows all the characteristics of a high sulphidation precious metal system covering a large 15 sq. km area. (5 km by 3km). The system remains open to the west and east".
In September 2017, the company announced results of the trenching program, which showed an average of 0.77 grams per tonne gold equivalent over 129 metres in 12 of the 14 channel samples collected over the 5-kilometre strike length.
Mammoth anticipated beginning its diamond drill program around the first of December. The program of 8 to 24 holes, and up to 3,000 metres, will test various high priority gold-silver targets along a 5-kilometre strike length within an approximate 15 square kilometre area of ubiquitous gold mineralization. The estimated budget of the program is $500,000, with the drill contractor agreeing to accept a portion of his costs in shares.
Thomas Atkins, President and CEO, recently stated: "Although I doubt we'll finish the entire program before year end, whatever portion continues into the new year there should be a steady supply of drill results flowing beginning in January and continuing for a number of weeks into 2018. We believe we've been quite diligent in our analysis of all the available information at our disposal to select what we believe are some of the most attractive drill targets on the property coincident with some very compelling features of a High Sulphidation precious metal system observed at the project. This includes abundant gold-silver mineralization in surface sampling and in 10 drill holes covering approximately 15% of the property from a 2008 drill program. Although we have no idea what gold-silver grades we'll intersect over what intersection intervals we do feel confident we'll intersect gold-silver mineralization in these holes."
Management and board members hold 2.81 million shares, or 13.5% of the total outstanding shares.
For more information please visit the company's website www.mammothresources.ca, contact Thomas Atkins, President and CEO, at 416-509-4326 or email info@mammothresources.ca.
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