Eric Lemieux, M.Sc., P.Geo. provides an analyst opinion onCartier Resources Inc. with a Speculative Buy rating and a 12-month share price target of $0.45. This target is based on a sum-of-the-parts valuation of Cartier’s portfolio of projects in the Québec Abitibi. Cartier is a precious metals explorer that owns strategic assets due to solid technical acumen, geological analysis and seizing opportunities. I highlight the following:
- Veteran management and exploration & development team with brown-fields Abitibi expertise;
- With >$12M $ in working capital, Cartier has tight control of burn rate and has important corporate and institutional investors: Agnico Eagle Mines, JP Morgan UK, and the Québec investment funds;
- 4 Key Projects: Drilling lowest risk – highest reward targets with potential to delineate mineral resources:
- Cartier is executing a >35,000m drilling campaign on the 100% owned Chimo gold project, a proven past producer which may have underground potential. Continuous news flow should prove up strategic approach;
- Cartier holds 100% of the Pusticamica deposit of the Benoistproject located on the northern fringes of Osisko’s Mining Lebel sur Quévillon-Windfall district play and midway between two operating mines (Langlois and Bachelor). Reminiscent of Laronde Camp potential with inferred sized potential at depth;
- Cartier also holds 100% of the Wilson project strategically located again in the middle of Osisko’s Mining Lebel sur Quévillon-Windfall district play, 2017 drill results require follow-up along projected rake;
- A recent 7,000m drill program sealed a 50% JV interest with SOQUEM on the Fenton project – drill results confirm mineralized system continues at depth.
- The report presents an estimate NAV for Cartier’s portfolio of projects at ~$98.03M and derive a sum-of-all-parts NAV of $122.3M as well as a conservative target price at 0.75x NAV of $0.45;
- The report highlights a clear and simple value proposition based on a healthy financial position, reward through the drill bit and long-term optionality.