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Highlights
Santana Minerals receives a "BUY" recommendation from Shaw and Partners with a target price of AUD 1.36, indicating a 161.54% upside.
Robust metallurgical test results from RAS and Srex deposits show high recoveries and low reagent consumption.
Statistical modelling enhances confidence in consistent gold recovery across varying ore grades.
Santana Minerals Limited (ASX:SMI) has attracted investor attention after receiving a definitive “BUY” recommendation from Shaw and Partners, setting a price target of AUD 1.36, representing a remarkable 161.54% upside from the current trading price of AUD 0.52.
The latest analyst endorsement reflects growing confidence in Santana’s project economics, underpinned by its recent metallurgical testing outcomes and resource modelling.
Metallurgical Results Back Valuation
Santana recently completed extensive metallurgical test work on both its flagship RAS orebody and the satellite Srex deposit. Six low-grade ore composites from RAS, averaging 0.665g/t gold, returned an impressive average gold recovery of 88.7%, with very low cyanide (0.30kg/t) and lime (0.19kg/t) consumption. This reinforces the viability of processing lower-grade material previously planned for stockpiling.
Regression analysis conducted on the cumulative dataset yielded a correlation (R² = 0.871) between head grade and residue, enabling reliable gold recovery estimation. At a head grade of 2.5g/t, for instance, an estimated 93.2% recovery is projected.
Meanwhile, test work on Srex ore—considered softer and less abrasive—yielded gravity recoverable gold averaging 37.2% and total recovery of 81.8% across nine samples. The tests confirmed low reagent usage and favourable processing characteristics, offering flexibility in future ore blending and plant design.
Strategic Relevance of the BUY Rating
With two consecutive “BUY” recommendations and an average current target price of AUD 1.27, Santana’s stock price outlook has significantly improved. Analyst Dorab Postmaster from Shaw and Partners led the latest review, issued on 27 June 2025, with the prior recommendation dated 22 August 2024.
CEO Statement and Future Outlook
Commenting on the results, Santana CEO Damian Spring stated:
“These are fantastic outcomes for our pending project development. High recoveries, low chemical consumption, fast leaching and moderate power requirements from our RAS and Srex ores provide great optionality for ore blending and an extended operating life.”
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