On Wednesday, H.C. Wainwright showed a positive outlook on shares of Solitario Exploration & Royalty (NYSE: NYSE:XPL) by increasing the price target to $1.20 from $1.10, while maintaining a Buy rating on the stock. The adjustment follows the company's recent announcement about the start of core drilling at its Golden Crest project.
On July 15, Solitario reported the initiation of Phase 1 of its 2024 drilling program, which is planned to include 10-12 holes, totaling approximately 5,000 meters. The primary focus for the initial drilling is the high-grade Downpour Zone, where previous trenching and surface rock sampling have uncovered significant gold presence at the surface.
The exploration efforts at the Downpour Zone have been particularly promising, with 37 specific surface grab samples yielding high gold values. Of these samples, seven have shown gold concentrations above 10 grams per tonne (gpt), 16 samples have registered above 3gpt, and 25 samples have indicated gold values above 1gpt. This high-grade gold corridor spans roughly 800 meters in length and up to 500 meters in width.
The firm's decision to raise the price target reflects the encouraging results from the surface grab sampling and the potential for the upcoming drilling results. The maintained Buy rating suggests a continued positive stance on Solitario's stock performance and prospects.
Investors and market watchers will be keeping a close eye on Solitario Exploration & Royalty as the company progresses with its drilling program and further explores the potential of the Golden Crest project. The increased price target is a sign of confidence in the company's exploration activities and its ability to positively impact its valuation.
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