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Hot Stocks: Colt Resources proving up Portugal gold resources

Colt Resources Inc (TSX.V:GTP) entered our radar via the news on May 6 that equity research firm Laurentian Bank Securities has given it a buy rating, with a price target of $1.30. It currently trades at 70 cents per share on the TSX-Venture.  This Canadian exploration company is focused on its five projects in Portugal, including the advanced-stage Montemor gold deposit.Montemor comprises five separate deposits with historical resource estimates ranging from 150,000 oz to 550,000 oz gold, defined over the period of 1991-2008. In an NI 43-101 Technical Report, SRK Consulting opined that “the potential exists to expand this historical resource to a range of 8-12Mt, grading an average of 2.5-3.0 g/t Au grade above a potentially economic cut-off, contained in a series of small open-pit and underground deposits.”

Using our resource calculators, we plugged in these figures to see the project’s potential valuation. On the low end of the scale, with eight-million tonnes grading 2.5g/t, the recoverable metal is 643,015 oz, which is valued at $961.5 million at today’s gold price of $1,495 per ounce. At the top end of the scale, with 12-million tonnes grading at 3.0 g/t, the recoverable metal is 1,157,427 oz, valued at $1.73 billion, with a gross metal value per share of up is $31.59.

Colt is now working to prove up resources and expects 43-101-compliant estimates by year’s end, which could boost the share price.

While the Montemor project alone presents an attractive valuation for Colt, the company’s Tabuaço tungsten project in northern Portugal further sweetens the deal. Colt’s recently-completed five-hole drilling program, designed to confirm and expand the historical, non-NI 43‐101 compliant resource estimate of one-million tonnes grading 0.87 per cent WO3, intersected 1.29% WO3 over 7.84m, including 1.90% WO3 over 3.76m.

Evaluate Colt Resources’ project values and more here.

This presentation may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The Issuer relies upon litigation protection for forward-looking statements. This piece is for information purposes only and is not a recommendation to buy or sell any securities.

Disclosure: No Positions