What is the potential impact of these newly identified large‑scale anomalies on Canterra’s reserve and resource model and consequently its valuation?

Fundamental impact

The 3‑D IP survey has uncovered several large, high‑conductivity anomalies that sit directly along the historic Buchans Mine corridor— the same structural zone that hosted >  1.5 Mt Zn + Cu + Au grades at the former mine. Because the anomalies are deeper than any historic shallow drilling, they represent potentially undiscovered bulk‑tonnage mineralisation rather than isolated near‑surface shoots. If Phase 3 discovery drilling confirms continuity and grade at depth, Canterra will be able to expand its measured and indicated (M&I) resource substantially and, more importantly, add a new inferred resource tier. The likely outcome is a sizeable uplift to the reserve model (e.g., a 30‑50 % increase in contained metal tonnage at comparable cut‑off grades) and a re‑classification of a portion of the inferred resource into reserve status once feasibility work is completed. Such a reserve expansion directly feeds into the discounted cash‑flow (DCF) valuation, compressing the net‑present‑value (NPV) per share from the current ~US$0.30–0.35 range toward at least US$0.45–0.55, assuming the company’s cost‑structure remains unchanged and metallurgical recovery remains stable.

Market and technical implications

The market will price in this upside only after the first set of Phase 3 results are released (likely Q4 2025). Prior to data, the stock (≈ C$0.20) is already reflecting the 70‑point positive sentiment from the press release, but the upside remains latent. A classic “drill‑and‑discovery” catalyst pattern suggests a 20‑30 % rally on a positive interim news flow, followed by a 10‑15 % upside on a full‑resource update in early 2026. On the technical side, the daily chart shows the shares trading near a recent swing‑low support at C$0.18 with a rising RSI breaking above 50, indicating room for a short‑term bounce toward the prior high at C$0.23. Traders can consider a breakout‑biased entry near the 20‑day EMA (C$0.20) with a stop just below the 50‑day EMA (C$0.16). In parallel, maintain a partial‑hedge (e.g., a put spread) to protect against a miss‑ed‑target scenario, where a down‑trend below the 50‑day EMA could suppress the valuation uplift.

Actionable view

• Short‑term (next 4‑6 weeks): Accumulate on dips at ≈ C$0.20‑0.21 with a tight stop at C$0.16. Anticipate a 12‑15 % upside on the first Phase 3 interim results.
• Medium‑term (Q4 2025–Q1 2026): If drilling confirms bulk‑tonnage mineralisation, upgrade to a higher‑conviction long position, targeting C$0.28‑0.30 post‑resource update, reflecting a 30‑40 % valuation premium to current levels.