HVV Highvista Gold Inc

A multi-thousand hectare property in a proven Mexican gold district, the
identification of five target areas along two major regional faults and a mining
team with a track record are among the factors cited by a Ubika Research report
released today that calculates a Ubika Model Price (UMP) of $1.39 with an
Undervalued rating on the stock of miner Highvista Gold Inc. (TSX VENTURE:HVV).


"The project on which we are pinning our forecast is the Canasta Dorada
Project," says Vishy Karamadam, Ubika Managing Director and lead researcher
responsible for the report. "It consists of a huge 24,215 hectare land area and
is located within the prolific Sonora Gold Belt in Mexico, which has numerous
operating mines, among them Mesquite, Picacho, Herradura, La Choya, El Chanate
and San Francisco. In fact it is adjacent to the well known El Chanate mine
owned by AuRico Gold Inc.


While acknowledging that it may be early in the game, Karamadam nevertheless
believes that Ubika's assessment is that Highvista, with its strong management
team, highly prospective property, financial backing and a strong board of
directors, has the potential to deliver a 1 Moz (million ounce) NI 43-101
resource estimate. Highvista, a Canadian junior exploration company, was formed
in 2011 by the consolidation of privately owned Highvista Gold Corp and Lowvista
Gold Corp. with Triumph Ventures Corp., a TSX-VEN listed Capital Pool Company.


"If our assessment is correct," he says, "we calculate the Ubika Model Price
(UMP) to be $1.39 for HVV shares on a fully diluted basis, which represents a
gain of 363% from the April 2 close of $0.30."


An added bonus, he points, is a "strong M&A potential" given that the district
has seen several acquisitions, the most notable being the recent acquisition of
Grayd Resources by gold giant Agnico-Eagle Inc. for $275 million.


To calculate the UMP, Ubika estimated the NI 43-101 compliant resources estimate
that it believes the company can produce if its exploration program is
successful. It hedges its projections on the drilling program that is currently
under way and the possibility of positive results, and then calculates the share
value per attributable resource.


The Ubika report points out that Highvista (TSX VENTURE:HVV) has identified five
target areas within the project along two major regional faults. "The field
work, which produced the target areas, included RC (reverse circulation)
drilling, mapping and sampling 30+ historic mines, satellite image analysis,
airborne magnetic survey and soil and rock sampling," says the research report
that is available free for download. "This rigorous and systematic exercise
(which involved more than 4,500 rock samples, 4 kg per sample) undertaken by HVV
to identify the target areas for drilling, gives us confidence."


Karamadam explains that Ubika was very impressed with the extensive preliminary
work done by Highvista, its strong technical and management team and the geology
of the area. He says: "We are reasonably optimistic that HVV may come out with
encouraging drill results, which, as mining experience shows, immediately
becomes a catalyst to the stock price in the short term." 


HVV's management team is headed by CEO Rick Adams, a mining engineer with
extensive experience in Mexico. He was the founder and CEO of Castle Gold, a
Mexican gold producer that was acquired by Argonaut Gold for $110 million. In
addition, HVV's board of directors includes well-known professionals, among them
Gerry McCarvill, the founder and Director of Consolidated Thompson Iron Mines,
and Edmund King, previously Chairman and CEO of the investment bank CIBC Wood
Gundy. 


Ubika's report is available at
http://www.smallcappower.com/companies/highvista-gold/home.html 


Ubika is an investment research and capital market services firm based in
Toronto and Vancouver with a proven track record of identifying and launching
research coverage of high potential small cap stocks (less than $1 billion) at
an early stage.


DISCLAIMER: Ubika Research has received compensation from Highvista Gold for
providing analyst research coverage. Except for the historical information
presented in its reports, matters discussed in these documents contain
forward-looking statements that are subject to certain risks and uncertainties.
Hence, actual results could differ materially from any future results,
performance or achievements expressed or implied in the reports.


Ubika Research and www.smallcappower.com (are both divisions of Ubika
Corporation), and are not registered with any financial or securities regulatory
authority, and do not provide nor claim to provide investment advice or
recommendations in its reports. Readers are encouraged to talk to their own
investment advisor before making specific investment decisions. Our full
disclosure is available at http://smallcappower.com/disclosure.aspx

Grafico Azioni Highvista Gold (TSXV:HVV)
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Da Nov 2024 a Dic 2024

Grafico Azioni Highvista Gold (TSXV:HVV)
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Da Dic 2023 a Dic 2024