Impact: Very Positive
Adyton Resources reported significant copper assays from one hole at its 100%-owned Feni Island project in Papua New Guinea’s Rim of Fire. A total of five holes (1,982m) were completed as part of the maiden drilling program at Feni Island with all five holes returning significant intersections of gold mineralization (previously reported). We view these intercepts from two potential Cu zones very positively, as Adyton could have potentially found a copper porphyry system, helping validate the company’s geological model. In our view, Adyton remains under the radar with a ridiculously low EV/oz of <US$1, and we believe further exploration success could lead to a warranted re-rating of the company’s stock.