Yesterday morning, NewCastle Gold Ltd. (TSX: NCA) reported additional drill results from the southern portion of the Oro Belle Trend within the region of the JSLA pit on its Castle Mountain Gold Project in California.
Highlights from the release include Hole 167 which intersected 148m of 0.89 g/t from 73m, including 31m of 2.45 g/t, and a further 171m of 0.42 g/t from 236m. CMM-161A intersected 180m of 1.01 g/t from 152m, including 20m of 5.79 g/t. Hole CMM-161A was completed as a supplement to hole CMM-161, where 52 samples were previously assigned a zero grade.
Based on recent results, the company will be starting a 10-km follow-up drill program in September. The company plans to complete its pre-feasibility study by the end of the year.
The 2015 resource includes a measured resource of 17.4 million tonnes at 0.86g/t gold for 0.48 million ounces and an indicated 202.5Mt at 0.57g/t gold for 3.71 million ounces.
NewCastle finished June with $3.12 million in cash and equivalents, before closing a bought deal offering on July 13, at $0.95 per share for total proceeds of ~$15 million. The company needs to raise money for preparation work and according to TD Securities, is looking at debt financing, or better alternatives if presented.
According to data collected by the Financial Times, as of last year, six analysts rated NewCastle outperform with one analyst recommending to buy the stock. As of Aug 25, 2017, the consensus forecast improved amongst 11 polled investment analysts covering NewCastle advises that the company will outperform the market. This has been the consensus forecast since the sentiment of investment analysts deteriorated on Apr 22, 2014.
TD Securities rated the shares in the company with a speculative buy, a speculative risk, and a 12-month price target of $2.00. TD assessed the news to have an positive impact on the company’s share price. By TD’s count, there are still results pending from this program.
News of the results pushed the stock up 1 cent to 96 cents on 497,900 shares on August 29.