Titan Minerals Ltd (ASX: TTM) this week released a 25% resource upgrade for its Dynasty Gold Project in Southern Ecuador, with the team at Canaccord Genuity saying they continue to expect big things from the company.
Canaccord has reaffirmed its bullish price target for the company, which we'll get to shortly.
Firstly, let's look at what was announced.
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More gold discovered
Titan said in a statement to the ASX this week that the mineral resource estimate across the Dynasty Gold Project now stood at 3.9 million ounces of gold and 26.1 million ounces of silver, up 780,000 ounces and 4.1 million ounces respectively.
The company said the mineralisation across all of its deposits remained open, with drilling set to start in the next week to assess how far the mineralisation extends.
Titan said 47% of the mineralisation at the Cerro Verde deposit was in the top 100m and 76% in the top 200m.
Titan Chief Executive Officer Melanie Leight said regarding the results:
We are very pleased to have delivered substantial growth at the Dynasty Gold Project, with an increase of 25% in contained gold ounces from the previous July 2023 mineral resource estimate. The mineral resource estimate update comes after 12 months and about 22,400m of targeted resource expansion drilling, with a discovery cost of US$6.30 per ounce, which is an impressive result and a credit to our dedicated geology team in Ecuador. Titan's geology team have been busy finalising a 30,000m drilling campaign to target continued resource growth and conversion. We look forward to the drill rigs kicking off again next week, with the geology team excited to test several compelling epithermal and porphyry targets that have never been drilled.
Shares looking cheap
The Canaccord team said in their research note issued this week that they had modelled their assumptions on the "indicated" category of mineral resource confidence, which did not change much in the update.
They said regarding the update:
Our price target remains $1.95, and we maintain our SPEC BUY rating. Our valuation is preliminary in nature and should be viewed as a what if case, given no formal mining studies have been published. Titan will now undertake scoping studies for Dynasty, the outcomes of which may be released to market late in 2026. However, given almost 70% of the resource is Inferred, we feel further resource conversion is required prior to Titan satisfying the ASX requirements to publish a mining study. As such, Titan will soon undertake a 30,000m resource conversion program.
Titan shares are currently changing hands for 86 cents. The company is valued at $277.4 million.
