According to Raymond James:

ATAC Preparing to Heat up the Yukon, Again

Event

ATAC released an overview of its planned 2013 Exploration Program at the 100% owned Rackla Gold Project in Yukon.

Recommendation

We view the news as positive as we believe ATAC has outlined a focused exploration program for 2013 that we believe will continue to delineate deposits and potentially lead to new discoveries. As ATAC’s valuation is based on comparable EV/oz metrics due to the limited definition drilling conducted on the various high-grade targets, recent market conditions have led us to update our NAVPS to reflect a lower average EV/oz of $55/oz (from $90).Using the updated EV/oz, we continue to recommend accumulation of ATAC shares with an Outperform rating and a new target price of $3.60 (from $6.25).

Analysis

The 2013 program is focused on definition drilling of the Sunrise, Isis East and Anubis Zones, all within the Nadaleen Trend, as well as regional exploration targets identified in late 2012. There are currently 10 Tier 1 Carlin-type gold targets within the Nadaleen trend and several anomalous targets within the Rau Trend.

Sunrise Zone: Discovery hole OS-12-173 returned 10.54 g/t gold over 14.86 m and the near-surface mineralization remains open in all directions.

Isis East: Drill hole OS-12-120 returned 6.28 g/t gold over 27.43 m.

Anubis: The Anubis Area is 10 km west of Osiris and located within a 600 m long arsenic/gold geochemical anomaly. Discovery hole AN-12-001 returned 19.85 g/t gold over 8.51 m and the deposit remains open along strike and down dip. There are currently nine Tier-1 Carlin-type gold targets within a 10 x 18 km area surrounding Anubis that ATAC plans to advance to the drill stage in 2013.

Cash: We estimate the 2013 program will cost $20 - $25 mln (all capitalized) and that ATAC has a current cash position, thanks to a recent $13 mln infusion from Agnico-Eagle (AEM-T), of $27 mln.

Valuation

Our $3.60 target price is based on a total RJL estimated resource of 7.00 Moz multiplied by a gold explorer and developer peer group average EV/Oz value of $55