Kootenay Silver Inc. (TSX-V:KTN) has enticing upside potential, analysts at Couloir Capital believe as the silver miner advances its projects in Mexico.
In recent weeks Kootenay published an updated resource estimate for the Promontorio project and a maiden resource estimate for the La Negra project which have increased the company’s total resource base.
The company has now published a resource estimate for three of its four projects, the analysts noted.
“The company now has around 220 million ounces of silver equivalent in the measured and indicated category and a further 55 million ounces of silver equivalent in the inferred category,” they wrote in a note to clients.
“While the existing resources are sizeable already, significant further upside remains.”
They pointed specifically to untested areas at the La Cigarra and Columba projects. The company is targeting a maiden resource estimate at Columba by the end of 2024.
They also highlighted that more than 40,000 metres of drill core are yet to be included in resource studies.
“This will either add ounces outright, improve the quality of existing reported ounces, or a combination of both,” they wrote.
“We are maintaining a positive outlook for the company over the next 12-month period with a target price of $2.40 per share.”
This represents an upside of almost 140% from Kootenay’s share price of $1.01 on Monday afternoon.
