OCO:CC - Ellis Martin Report: Cantor Fitzgerald Initiates Coverage for Oroco Resource Corp. (ORRCF) with a $1.50 BUY Rating - Santo Tomas Copper Project
"Attractive Copper Project in Mexico - Well Aligned with Critical Metals Strategy"
Cantor Fitzgerald is initiating coverage of Oroco Resource Corp. with a BUY rating and $1.50/shr target price. Oroco is a mineral exploration company with an experienced team advancing its Santo Tomas Copper Project in Mexico. The current resource estimate, released in May 2023, showed a total of 8.6 Blb of copper equivalent (CuEq) in the Indicated & Inferred categories with an average grade of 0.36% CuEq and the deposit remains open with significant expansion potential. An upcoming preliminary economic assessment (PEA) is expected to yield attractive economics benefitting from the deposit's favourable geometry and location in a supportive jurisdiction with good infrastructure. The stock is attractive trading at just over US$0.01/lb vs peers at US$0.03/lb with key catalysts ahead.
VALUATION
The $1.50/shr target price is based on EV/Resource multiples of US$0.03/lb CuEq based on the current resource estimate of 8.6 Blb of CuEq in all categories.
INVESTMENT HIGHLIGHTS
Large Copper Resource: The Santo Tomas Copper Project is one of the largest undeveloped copper projects in North America with an open pit resource estimate outlining 8.6 Blb copper equivalent.
Exploration Upside: Mineralization remains open to the north and south, with clear potential for further expansion of the resource outside the current economic pit shell.
PEA Underway: A preliminary economic assessment (PEA) is underway and on track for completion in H2/23. We see potential for an NPV8% in the US$1.7 B range.
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About Oroco Resource Corp:
Oroco Resource Corporation (CVE:OCO) (OTCMKTS:ORRCF), founded in 2006, is a Canadian mineral exploration company with a history of and expertise in the development of resource opportunities in Mexico. Oroco is led by a management team with significant experience in exploration, discovery, development and operations in the mineral sector.
Oroco's focus is on the confirmation and expansion of the historical resource of the Santo Tomas porphyry copper project in Sinaloa State, Mexico, while continuing its assembly of neighbouring mineral concessions and the acquisition of certain other rights associated with the project. Oroco has a controlling interest in 8,908.79 hectares of contiguous mineral concession that cover and surround the known core of the Santo Tomas mineralized structure as well as the potential extensions of the historical resource to the north and south. This controlling interest increases as Oroco funds the additional exploration and development of the project.
The Santo Tomas project is a copper porphyry deposit which is historically defined by a total of 106 diamond drill and reverse circulation drill holes, totalling approximately 30,000 m. In July of 1994, Bateman Engineering Inc. conducted an economic assessment of the Santo Tomas project based on technical work by a team that included Mintec, Inc., Mountain States Research and Development, Inc., and Minetek S.A. de C.V. Bateman completed this study, termed "Santo Tomas Project, Sinaloa, Mexico, Pre-Feasibility Study." Current drilling activity is intended to confirm the historical project data and to further define the extent and quality of the resource.
While the economic assessment by Bateman contains favourable metallurgical test results and engineering designs that remain broadly acceptable today, the Company considers these historical economic studies and associated mineral resource estimates to be only conceptual in nature until confirmed b
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Source:
Oroco Resource Corp The Ellis Martin Report
Contact:
T: +1.604.688.6200
F: +1.604.688.6260
E: info@orocoresourcecorp.com