The principal business of St. Elias Mines Ltd. is the acquisition, exploration, development and sale of high potential mineral properties in the most prolific regions of the world. At present, the Company is focusing its exploration efforts on gold in Peru with three gold properties (Tesoro, Vilcoro and Cueva Blanca.)

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Gluckstein & Silverspoon bullish on St Elias Mines

In a note to investors, equity research specialists Gluckstein & Silverspoon estimates that St Elias Mines (TSX-V:SLI) is currently trading at an approximate 35% discount to its NAV (net asset value) per share. The note states that “with zero net‐debt, SLI currently enjoys a leverage‐free capital structure, and has been able to advance its exploration program at relatively low cash costs”.

Gluckstein & Silverspoon noted that SLI's primary strategy is to acquire under‐explored mineral resource assets, and to prove up reserves to prepare for eventual sale, or optioning of their proportional interest.

The company’s shares currently trade around the C$1.70 level, and Gluckstein & Silverspoon sets a C$2.16 NAV/per share estimate for the company, with a target price 1.25x NAV/per share, at C$2.70. The research house said that the estimate represents the value it believes “could be un‐locked if the company's combined gold resources were to be acquired by larger competitors under current gold market conditions”.

Furthermore, the researcher stated that its “estimate is based on management's and our own estimates and assumptions regarding each of the company's projects' potential gold reserves, combined with market‐based valuation multiples derived from recent acquisition transactions of mining interests by producing majors”.

The company’s flagship asset is the wholly-owned Tesoro gold property, in the Nazca‐Ocoña region of southern Peru. Gluckstein & Silverspoon highlighted that the company should be adequately capitalized to implement its planned 10,000m drilling program at Tesoro.

The note’s outlook is bullish for St Elias, saying that the company has “significant gold resource potential and relatively low financial risk profile”.