Solid ResourcesTSXV - SRW
OTCQX - SLDRF
Shares Outstanding - 93.9 million
Fully Diluted - 147.3 million
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Objective Capital, a UK based research firm, recently published an Initiation Report on Solid Resources. The 32 page document provides investors with an overview of the company, its properties and builds a case for a $0.21 - $0.83 CDN / share valuation.
That’s represents a value of 2.5 to 9 times the stock’s current sub $0.10 trading price.
Below are some Key Points from of the Report. Please note that the information for the report was accumulated prior to the issuance of all the results of the 2011 drill program.
Solid Resources has a promising early-stage tantalum-tin-rare metals project in an accessible region of northwestern Spain. The company has completed a 2011 drill programme, drilling two mineralised zones, and expects to complete a NI 43-101-compliant resource estimate in October, and achieve quick production thereafter.
• The Doade-Presqueiras property is Solid’s flagship project Solid’s management is focused on exploration and development of its 100 percent owned Doade Presqueiras property in northwestern Spain. The company’s optimism is based on historic tin mining that took place on the property and more recent drilling assays that show encouraging quantities of rare metals, notably tantalum, lithium, niobium and rubidium.
• A significant drilling programme now completed Solid commenced drilling early this year at Doade Presqueiras with the intent of completing 29 holes for 3,500 metres. The drilling was to target a northern zone with 16 infill holes, with 13 holes planned for the southern portion of the
property. This programme was subsequently increased to 31 holes based on an unexpected and highly encouraging assay obtained from the northern zone. Metallurgical work is currently under way and should be complete in November.
• Assays to date have returned significant values of tantalum, tin and rare metals Solid now has assays for 18 holes drilled this year into the northern mineralised zone at Doade Presqueiras, and for 13 holes targeting the southern mineralised zone. Drilling this year suggests the deposit is considerably larger than previously believed. Assays have been significantly higher than in earlier drilling. Local values within the north zone range as high as 207 parts per million (ppm) tantalum, with potential continuity between all areas and with thicknesses of up to 11.5 metres. High-grade mineralisation in the most southern zone, known as Taboazas, has averaged 256 ppm tantalum, 1,216 ppm tin, 0.98% lithium and 167 ppm niobium.
• Tantalum is the emerging story at Doade-Presqueiras Tantalum is a strategic metal, vital for the manufacture of most electronic devices, such as capacitors, cellular telephones, and computers, and without a viable substitute. A substantial proportion of global supply comes from
politically troubled areas and a supply shortfall has sparked a significant price increase recently. Development of a “conflict-free” mine in Spain could ease concerns over the source of supplies – particularly in the consumer electronics industry.
• Solid also has an early stage copper-gold prospect under option in Peru Last year, Solid acquired an option to earn a 100-percent interest in an early stage copper and gold prospect in northwestern Peru. Grab samples have returned anomalous values of gold and copper, ranging as high as 30 grammes of gold per tonne and 1.0 percent copper.
• Solid has recently completed a C$1m financing to further its exploration in Spain and Peru Solid’s management has successfully raised C$1m through a private placement of 10 million shares at C$0.10. Further, the company has a considerable quantity of options and warrants outstanding that could provide several million dollars in a rising market.
• Valuation of Solid yields a base-case valuation of C$0.21 per share Our assessment of Solid Resources and its Doade-Presqueiras project, based on reasonable probabilities of exploration success, yields a base-case valuation of C$0.21. Assuming success at all stages of future exploration and development, our assessment would increase to C$0.39, and with more optimistic assumptions, to C$0.83.
To read the full report, please click here
That’s represents a value of 2.5 to 9 times the stock’s current sub $0.10 trading price.
Below are some Key Points from of the Report. Please note that the information for the report was accumulated prior to the issuance of all the results of the 2011 drill program.
Solid Resources has a promising early-stage tantalum-tin-rare metals project in an accessible region of northwestern Spain. The company has completed a 2011 drill programme, drilling two mineralised zones, and expects to complete a NI 43-101-compliant resource estimate in October, and achieve quick production thereafter.
• The Doade-Presqueiras property is Solid’s flagship project Solid’s management is focused on exploration and development of its 100 percent owned Doade Presqueiras property in northwestern Spain. The company’s optimism is based on historic tin mining that took place on the property and more recent drilling assays that show encouraging quantities of rare metals, notably tantalum, lithium, niobium and rubidium.
• A significant drilling programme now completed Solid commenced drilling early this year at Doade Presqueiras with the intent of completing 29 holes for 3,500 metres. The drilling was to target a northern zone with 16 infill holes, with 13 holes planned for the southern portion of the
property. This programme was subsequently increased to 31 holes based on an unexpected and highly encouraging assay obtained from the northern zone. Metallurgical work is currently under way and should be complete in November.
• Assays to date have returned significant values of tantalum, tin and rare metals Solid now has assays for 18 holes drilled this year into the northern mineralised zone at Doade Presqueiras, and for 13 holes targeting the southern mineralised zone. Drilling this year suggests the deposit is considerably larger than previously believed. Assays have been significantly higher than in earlier drilling. Local values within the north zone range as high as 207 parts per million (ppm) tantalum, with potential continuity between all areas and with thicknesses of up to 11.5 metres. High-grade mineralisation in the most southern zone, known as Taboazas, has averaged 256 ppm tantalum, 1,216 ppm tin, 0.98% lithium and 167 ppm niobium.
• Tantalum is the emerging story at Doade-Presqueiras Tantalum is a strategic metal, vital for the manufacture of most electronic devices, such as capacitors, cellular telephones, and computers, and without a viable substitute. A substantial proportion of global supply comes from
politically troubled areas and a supply shortfall has sparked a significant price increase recently. Development of a “conflict-free” mine in Spain could ease concerns over the source of supplies – particularly in the consumer electronics industry.
• Solid also has an early stage copper-gold prospect under option in Peru Last year, Solid acquired an option to earn a 100-percent interest in an early stage copper and gold prospect in northwestern Peru. Grab samples have returned anomalous values of gold and copper, ranging as high as 30 grammes of gold per tonne and 1.0 percent copper.
• Solid has recently completed a C$1m financing to further its exploration in Spain and Peru Solid’s management has successfully raised C$1m through a private placement of 10 million shares at C$0.10. Further, the company has a considerable quantity of options and warrants outstanding that could provide several million dollars in a rising market.
• Valuation of Solid yields a base-case valuation of C$0.21 per share Our assessment of Solid Resources and its Doade-Presqueiras project, based on reasonable probabilities of exploration success, yields a base-case valuation of C$0.21. Assuming success at all stages of future exploration and development, our assessment would increase to C$0.39, and with more optimistic assumptions, to C$0.83.
To read the full report, please click here
