The target is almost triple the last traded price of $0.13.
The following is an extract from the report.
Far West resource upgrade shortens ramp-up period
The Far West resource is the largest of the initial deposits and underpins the company's restart study at Thalanga.
The restart study estimates an initial ~5 year project from the West 45, Far West and Waterloo underground mines.
Far West is expected to be developed after the West 45 underground mine is established.
The Far West resource upgrade will be incorporated into an updated restart study to be announced over the coming months.
The updated resource has potential to extend the minelife at Thalanga and reduce the capex requirement of the Far West underground mine.
The resource now begins within ~100m of surface and allows the Far West underground mine to be brought online much earlier than previously expected.
We now model the Far West mine to be incorporated into the Thalanga mine plan during the 2nd year which allows the processing plant to ramp up to ~400ktpa much earlier than previously forecasted.
Truncheon drilling ongoing, potential for high grade Cu-Au
RVR is currently drilling the highly prospective Truncheon prospect located ~3km north east of the Highway-Reward deposit and ~85km by road from the Thalanga processing plant.
Highway-Reward was a VMS-style deposit with historical production of 3.8Mt @ 6.2% Cu & 1g/t Au.
The historic geophysical data at Truncheon has been re-processed by RVR and shows a strong gravity response which has been poorly tested by previous drilling.
RVR is currently drilling two "scissorholes" to ~500m to test the target.
Pipeline of VMS targets to drill after Truncheon
After testing Truncheon the Company will look to test prospects at Liontown, Waterloo and Ermine.
The Liontown East prospect is located ~800m along strike of the Liontown deposit [2.3Mt @ 8.4% ZnEq] and looks to be a potential extension of Liontown.
At Liontown East a large (600m x 350m) untested IP anomaly exists below historic shallow intercepts.
Ermine is another high priority target to be tested whereby re-processing of historic geophysical and geochemical data has identified a significant untested IP and coincident Pb-Zn in soil anomaly.
The IP anomaly at Ermine sits along strike from historic shallow high grade zinc intercepts up to 29.2% Zn.
Esso's Waterloo is a prospect located ~2km east of the Waterloo deposit [707kt @ 19.1% ZnEq] and within the same stratigraphic position which hosts the Thalanga deposits.
Historic intercepts at Esso's Waterloo have failed to test an IP anomaly to the north of the gossan.
We continue to see significant potential to discover further VMS-style deposits within the Mt Windsor region.
The Company will look to drill the Liontown, Ermine and Waterloo prospects over the coming months.
Price underpinned by Zinc development, exploration "free kick"
High impact drilling continues at the Truncheon prospect with other VMS targets to be tested over the coming months.
We see potential for further discoveries within the Mt Windsor region over the coming ~6-12 months.
RVR's current drill program will test some of the best base metals targets we can see in the current market.
The current share price is underpinned by a robust development project at Thalanga and the ongoing drill program offers a "freekick" at exploration success.
We maintain our Speculative Buy recommendation with a price target of 36c, NAV of 40c, spot NAV of 25c.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.