Stifel Canada on Tuesday reiterated its buy rating on the shares of ATEX Resources (ATX.V) and its C$5.25 price target after the company released exploration results from its Valeriano project in Chile.

"ATEX reported assay results at Valeriano, highlighted by ATXD34 extending mineralization ~135m east of B2B cutting 172m @ 0.80% CuEq. Regional step-out hole ATXD33 intersected lower-grade porphyry mineralization 325m southeast, and while positive from a system scale perspective we think will receive a yawn. Today's takeaway is that of scale, where the lateral extent of the B2B fertile horizon has been extended 70% eastward, with volume upside to +125MMt @ B2B; CoG dependant. This represents 10% upside to current model, with six holes in progress testing the up/down dip & strike potential. Forward, two holes have assays pending into geophysical anomalies analagous to B2B, along linked structural lineaments at similar depths, indicating significance of the B2B vertical horizon in mineral fertility. We see strong downside protection in ATX currently (trading at 30% discount to FdS in situ acquisition multiple despite Cu +40% since), with minimal value for breccia/discovery," analyst Cole McGill wrote.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 3.35, Change: +0.02, Percent Change: +0.60