Rockstone Research published its first update six months after initiating coverage on Vendome Resources Corp., a silver exploration company, becoming highly active in Mexico.
The potential of Vendome’s exploration projects inspires us, especially when considering that virtually no drilling ever took place. This is about to change.
The large amount of high-grade chip, grab and channel samples that were found and presented to the shareholders appears to be unprecedented. The first NI43-101-compliant Technical Report that was published in mid-November 2012 confirmed our impression. The report anticipates the mineralized polymetallic vein deposit to be related to regional-scale (geologic) structures that penetrate to great depth, and, moreover, that it is probable that additional veins are present in proximity to other regional structures on and near the San Javier property.
Furthermore, based on ASTER satellite imagery, the apparent disposition of hydrothermal alteration and structure, the La Diana and San Miguel properties may host mineralization similar to that found at the San Javier property, and, with it, the possibility of multiple prospects and occurrences across those properties which have a combined size of 17,000 hectares.
Although all mining indexes worldwide are reaching new year-long lows, the Vendome stock stems successfully against this trend:
We value Vendome being a junior mining stock able to perform even if the general market continues to depreciate. Thanks to the announcement of a 3,000 m drilling campaign (first one ever), we feel constrained to increase our initial price target from 55 to 75 Canadian cents as we speculate on spectacular drill results during the next six months.
The full analysis can be read using the following link:
About the Author
Stephan Bogner (Dipl. Kfm. in Economics) is a mining and commodity analyst with Rockstone Research Ltd., an independent research house specialized in the analysis and valuation of capital markets and publicly listed companies. The focus is set on the exploration, development and production of resource deposits.