What are the anticipated changes to SRQ’s resource estimates and production outlook following the discovery of the new mineralized zone at Target 900?

Fundamental outlook – The intersect at Target 900 confirms that the Lac Brulé intrusive magmatic complex is larger and more mineral‑rich than previously modelled. Management has signalled that the new zone will be incorporated into the next NI 43‑101 resource update, with analysts expecting an up‑step in both inferred and indicated tonnage (potentially several Mt of additional copper‑gold‑zinc mineralisation, depending on grade continuity). Because the complex remains “undeformed” and the geophysics still show a broad footprint, the company can plausibly expand the current resource by 10‑20 % or more, which would push the projected mine‑life out beyond the current 7‑year schedule and lift the annual production outlook (especially copper and zinc output) in the 2026‑2029 horizon.

Market & technical implications – The news has already lifted sentiment (70 % bullish) and sent the stock into a modest rally, breaking the prior resistance around CAD 0.45. Volume is above the 20‑day average, suggesting genuine buyer interest rather than a short‑term speculative bounce. Until the formal resource revision is filed (likely Q4 2025), the stock may experience pull‑backs to the 20‑day EMA (≈CAD 0.48) that present buying opportunities for risk‑tolerant traders. Conversely, a delayed or modest‑size update could trigger a correction, so keep an eye on the company’s upcoming press release calendar and any forward‑looking guidance on capital expenditures for expanding the mine plan. In short, the discovery justifies a short‑to‑medium‑term bullish stance, with entry on retracements and a target of CAD 0.70‑0.75 if the resource upgrade materialises as expected.