Canaccord highlights three Aus gold explorers

Canaccord Genuity has initiated coverage on three Western Australian gold explorers — Benz Mining (TSXV: BZ; ASX: BNZ), Golden Horse Minerals (ASX: GHM) and Torque Metals (ASX: TOR) — highlighting strong discovery potential across some of the country’s most prospective greenstone belts. 

Western Australia continues to reward disciplined exploration, with high-grade discoveries creating value for emerging gold companies, Canaccord mining analyst Paul Howard said Oct. 20 in three notes on the companies. Each company combines geological continuity, proven mineral systems and active drilling programs, he said. The three represent different paths to value: Benz through scale, Golden Horse through near-term production and Torque through grade and consolidation. 

The three explorers form part of a new generation of developers that could supply mid-tier and major producers seeking replacement ounces, reaffirming Australia’s status as a cornerstone of global gold exploration. Rising grades at projects such as Benz’s Zone 126 and Torque’s Paris deposit highlight the Yilgarn Craton’s continued fertility after more than 200 million oz. gold produced over the past century. 

“Like a finely tuned German machine, Benz Mining is built for performance,” Howard said, highlighting the company’s main Glenburgh gold project in Western Australia’s Gascoyne region. “Zone 126 is emerging as a multi-lens, high-grade gold system where drilling has validated a new northeast-plunging fold model controlling mineralization.” 

Yilgarn Craton 

Glenburgh lies on the northern rim of the Yilgarn Craton in a geological setting similar to AngloGold Ashanti (NYSE: AU) and Regis Resources (ASX: RRL) at their Tropicana joint venture. In April, Benz reported 11 metres grading 19.9 grams gold per tonne from 274 metres deep in hole GBZ126_010 and 79 metres grading 4.4 grams from 534 metres down hole GBZ126_011. 

Canaccord started Benz with a speculative-buy rating and a price target of A$2.50 per share, based on an enterprise-value-to-resource multiple drawn from comparable Australian developers. The broker sees Glenburgh ultimately hosting about 4.5 million oz. across its Zone 126 and Icon–Apollo trends. 

Golden Horse Minerals was called a “Western Australia gold exploration bolter,” with 1,800 sq. km of ground over the Southern Cross Greenstone Belt. Its Hopes Hill prospect has returned thick, high-grade intersections such as 83 metres grading 2.5 grams gold per tonne from 103 metres depth in hole GHHHRC0019 reported in April. In September, it reported 28.7 metres grading 3.8 grams from 192 metres in hole GHHHRCD0068.  

Canaccord set a A$1.50 target and speculative-buy rating, estimating about 2 million oz. potential and noting the project’s proximity to historic producers. 

Torque

Torque Metals’ Paris gold project, 120 km south of Kalgoorlie, hosts 250,000 oz. grading 3.1 grams gold per tonne across 350 sq. km. Drilling in releases dated July and Aug., respectively, shows 12 metres grading 12.49 grams gold from 495 metres, and 15.5 metres grading 12 grams gold, including 8.5 metres at 20.8 grams. Both were recorded in hole 25PRC206.  

The drilling confirmed extensions of mineralization at depth, roughly 380 to 410 metres vertically, and highlighted strong continuity within sulphide-associated zones. The company said the results reinforce the project’s potential for additional lodes parallel to the main Paris orebody, which remains open along strike and at depth.  

Metallurgical tests indicate recoveries up to 99.7% with conventional gravity and carbon-in-leach processing. Canaccord values the stock at A45¢ per share and sees the district holding about 1.6 million oz. gold over time. 

All three companies were valued using an enterprise-value-to-resource approach to reflect their early-stage status, producing implied price-to-net-asset ratios between 0.5 and 0.7 times — levels the broker called modest by historical standards.