Coverage Initiated on Miner Focused on Reviving Idaho Mine

In a Nov. 21, 2018, research note, Analyst Don Blyth reported that Paradigm Capital initiated coverage on Revival Gold Inc. (RVG:TSX.V), an advanced-stage explorer/developer, with a Speculative Buy rating and a CA$1.85 price target. In comparison, the stock is trading today at around CA$0.68 per share.

The company intends to define sufficient resources at the former producing Beartrack mine and the neighboring Arnett property to restart operations there, first using a heap-leach method and then transitioning to a milling setup to capitalize on the nonoxidized mineralization, Blyth explained.

He outlined the reasons why Revival makes a good investment.

First, he noted, the Beartrack project being a brownfields one is advantageous as it "generally has less risk than a new greenfields discovery and a shorter timeframe to development and operation."

Second, Revival is approaching Beartrack conservatively by optioning it rather than buying it at first, allowing it to "prove up its concept before taking on the liabilities that come with the reclamation/monitoring of past mining activities at the site." With the deal, the company essentially really only needs to adhere to the four-year, earn-in schedule. The downside comes at the end of that period when Revival, to purchase the asset, must make a cash payment in proportion to the amount of gold it has found on the property.

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