The market is largely unaware of the exploration potential at Cluff Gold’s (LON:CLF, TSX:CFG) Kalsaka mine in Burkina Faso, according to Evolution Securities analyst Louise Collinge.
Evolution visited Kalsaka earlier this week and it left feeling "very impressed" with the mine's potential.
The analyst highlighted that Cluff’s ability to invest in exploration has been constrained in recent years, but it is now able to focus on exploration once again – due to improved financials from its growing production profile and a recent fundraising.
These efforts are likely to benefit the current mining operation.
“We believe that the company will be able to extend the life of the heap leach operation with exploration close to the existing pits,” Collinge said.
She adds: “In addition, we visited the wider K-Zone Shear - a 15 kilometres anomaly containing considerable artisanal workings where Cluff will undertake a drilling programme in January.
“With a 20 kilometre potential strike, the company’s Yako licence some 35 kilometres from Kalsaka where Cluff already has a small resource also has considerable potential.”
Collinge rates Cluff a ‘buy’ with a 150 pence target.
The analyst also stressed that she expects to be in a position to upgrade the target based on exploration success at Kalsaka, or any of its other properties.