Vancouver, British Columbia--(Newsfile Corp. - March 4, 2014) - Toronto based eResearch has initiated coverage on Crown Gold (TSXV: CWM). Analyst Bob Weir gives the company a speculative buy recommendation with an initial short-term target of $0.07, a premium of 600% over the $0.01 on February 28th, the day the report was issued.
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Crown is focused on advancing the Superior Copper Project in Plumas County, California to the production stage. The Superior Project contains three identified deposits, the Superior, Engels and Sulphide Ridge.
The Superior Copper Project has a current NI-43-101 resource of 547 million pounds of copper with the Superior deposit showing 54.4 million tonnes of 0.41% copper or 487 million pounds in the inferred category, and the Engels deposit showing another 2.6 million tonnes of 1.05% copper, or 60 million pounds in the inferred category. Crown's objective is to expand the current resource at Superior to a level in excess of 1 billion pounds of copper by targeting the historic resource identified by Placer Amex in the 1960's. Once that level has been achieved production studies will begin.
Crown has already determined that the mine permitting process should take less than 2 years once started.
The shares trade at $0.015, and with approximately 93.9 million shares outstanding, the company is capitalized at $1.4 million.
The hotly-contested acquisition bid by HudBay Minerals for Augusta Resource Corporation, and its Rosemont Copper deposit in Arizona is helping to focus investor attention on the junior mining sector. The Hudbay initiative could be an increasing indication that the producers see value in purchasing assets cheaply rather than the timely developing of its properties themselves.
Analyst Bob Weir stated, "Given that Crown Gold's resource estimate and development stage are far behind Augusta's, we are taking, as appropriate for Crown Gold, half of the HudBay bid level, or US$0.03 per pound. This equates to a market cap of $18.16 million, or $0.19 per Crown Gold share."
For more information on the company, please visit their website at www.crowngoldcorp.com, or contact. Stephen Dunn, President and CEO at 416-361-2827 or email info@crowngoldcorp.com.
For a copy of eResearch's report, please visit their website at www.eresearch.ca.
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