On 21st November AM and TSX listed gold miner Minera IRL (MIRL) announced a material upgrade to its resource estimate for the Don Nicolas project in Argentina. The Measured and Indicated Resources have been increased by 23% to 468,000 ounces of gold. The economic effect of this is to increase the life of the mine estimate, something assisted by a 14% increased in the inferred resource estimate, to 165,000 ounces of gold. This has prompted broker Fox Davies to set a target price for the shares (56p today) of 116p.I do not entirely disagree with its analysis and here is why.
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