Dahlman Rose Reiterates Buy Rating on US Gold (UXG)

Dahlman Rose is out with a research report this afternoon, where it reiterates its Buy rating on US Gold UXG; it has an $8.81 price target on the stock. The DR analysts noted that US Gold continues to intercept long intervals of gold mineralization at its Cadillac discovery area at the Limo project. Results have included: 2.56 gpt Au over 82.3 meters, including 7.17 gpt Au over 12.2 meters, 3.27 gpt Au over 16.8 meters, and 1.33 gpt Au over 32 meters. As for valuation, the analysts remarked, “We await further drilling results, metallurgical work, and resource definition before changing our models and valuation for Limo and Gold Bar. However, we believe that ongoing exploration at these areas should generate value over time.”