Initiating Coverage on Palamina Corp with Buy Recommendation and Conservative Price Target

Palamina Corp. (TSXV: PA – $0.32 & OTC: PLMNF – $0.26) is an exploration stage company, which is focused on Peru’s highly prospective Puno Orogenic Gold Belt where it has staked no less than six projects.

Of the six projects, the Company has prioritized the Gaban and Coasa properties in the belief that these have the geological potential to host +1 million ounce gold deposits.

The Gaban project area could very well incorporate the watershed for active artisanal gold mining, which is observed at more than ten locations within the concession boundaries. Initial stream sediment sampling returned values of up to 4.9 g/t gold. Subsequent rock sampling bordering the drainage system is returning anomalous gold geochemistry and important pathfinder element results.

At Coasa, certain areas have been identified which are closely associated with the regional structure that influences the controls on gold mineralization on the +1 million ounce gold Crucero project, which was recently sold for $5 million to GoldMining Inc.

The Puno Gold Belt, is experiencing a modern-day gold rush as ever more companies stake properties in the area. Consequently, being able to rely on the right team of people to acquire the very best properties has become extremely important. Palamina’s Peruvian exploration team has no less than 27 years of field experience in the Puno Orogenic Gold Belt. Moreover, the Company’s Board and management team have historically been successful in defining significant gold deposits and bringing them forward.

Palamina is positioning itself to fill the demand for new gold projects with multi-million ounce potential. Consequently, we initiate coverage of Palamina Corp. with a buy recommendation and a price target of $0.54, which is 71% above today’s stock price.

Note that this is a relatively conservative estimate and that further developments and any new discoveries at the Company’s properties may trigger a price target increase.

Smallcaps.us Advice: Buy	Price Target: $0.54	Latest Company Report (pdf)
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