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Cormark Securities has raised its price target on Northern Superior Resources (TSXV: SUP) to $2.00 from $1.50, citing summer drilling success at Philibert and a higher in-situ value assumption of US$60 per ounce.
The brokerage writes that Northern Superior “has room to the upside both from continued exploration success and the potential for a takeout by a larger company looking for sizeable resources in a low-risk jurisdiction.”
The firm’s update follows a 20,000-metre expansion drill program that expanded mineralization beneath the current resource pit and outlined a new high-grade zone over 200 metres of strike and 150 metres of vertical extent.
Headline intercepts included 18.0 metres at 2.48 g/t (including 4.9 metres at 7.02 g/t), 21.6 metres at 4.82 g/t from 583.0 metres (including 7.0 metres at 11.86 g/t from 595.0 metres), and 22.2 metres at 2.09 g/t (including 10.0 metres at 3.54 g/t).
Cormark applies the US$60 per ounce in-situ metric to 3.54 million ounces of current resources across Philibert, Chevrier, and Croteau, versus an explorer/developer comps average of US$43 per ounce. The broker also points out SUP shares are up 117% since May, reflecting growing investor attention to Philibert.
The report emphasizes Philibert’s location in Québec’s Chibougamau gold camp—a Tier 1 jurisdiction with road, hydro and rail access—adjacent to IAMGOLD’s 8.3 million ounces Nelligan project.
Northern Superior Resources last traded at $1.41 on the TSX Venture.
FULL DISCLOSURE: Northern Superior Resources is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Northern Superior Resources on The Deep Dive, with The Deep Dive having full editorial control. This is not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.
