Closing Bell: Small caps hold steady, but brace for stormy weather on the horizon

• Emerging markets index fights back, up 1.5%
• ASX200 fights back even more, up 1.8%
• A big winner of the day here

A lover, not a fighter, the ASX Emerging Companies (XEC) index still knows how to bare knuckle its way out of trouble when the occasion demands.

The index that could is up 1.5% today, the benchmark ASX 200 is doing even better, up 1.8% and on track to deliver one of its best sessions of 2022.

Naturally, there’s a little shifting of deck chairs on a large cruise liner headed into iceberg territory, but we’ll take it. Overnight on Wall Street late buying added ballast to a stormy week for US stocks.

Federal Reserve chair Jerome Powell calmed some of the edgier traders with soothing words on the gentleness his board of governors will apply to stomp on the head of burgeoning US inflation.

They had a bad read yesterday, but the chair’s promises of not pulling out the 75 basis point card inspired some buying around the grounds – and as it’s played out today – the tech names were the big winners.

TODAY’S BIGGEST SMALL CAP WINNERS

(Stocks highlighted in yellow rose after making announcements during the trading day).

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Explorer Ozaurum Resources (ASX:OZM) says a new diamond drill hole has hit gold-hosting rock at ‘Mulgabbie North’, “further validating the potential of Mulgabbie to be a significant gold discovery”.

Late last month OZM  hit 1.31g/t over 56m — including 18m @ 2.07g/t  — in drilling at the ‘Mulgabbie North’ project, next door to Northern Star’s (ASX:NST) tier 1 Carosue Dam operations in WA.

The results, which include significant hits from three holes spaced 100m apart, come from a recently launched 7,500m reverse circulation (RC) drilling campaign.

It’s early days, but this virgin discovery at the so-called ‘Demag Zone’ remains ‘open’ all over the joint, OZM says.

“The Mulgabbie North Gold Project is shaping up to be a significant gold discovery situated right alongside the Northern Star Carosue Dam Mill,” OZM boss Andrew Pumphrey says.

“The first diamond drill hole completed at the new discovery Demag Zone has intersected mineralisation that closely correlates with adjacent RC holes MNORC 176 and 177, further validating the potential of Mulgabbie to be a significant gold discovery.”

After listing in 2021, OZM punched in a mammoth 82,000m of combined RC and AC for the year in the hunt for WA’s next big gold mine.

It is planning an initial 7,500m of RC, 2,000m of diamond and 5,000m of AC for the first six months of 2022. RC drilling of the Discovery Demag Zone will commence in three weeks’ time.

TODAY’S BIGGEST SMALL CAP LOSERS

(Stocks highlighted in yellow fell after making announcements during the trading day).

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ANNOUNCEMENTS YOU MAY’VE MISSED

Cazaly Resources (ASX:CAZ), and its buddy-partner Woomera have finished drilling for nickel-copper targets at their Mt Venn project and are now waiting on assay results.

The JV drilled 10 reverse circulation holes totalling 1,708m to test for high-grade extensions of previously reported disseminated and massive nickel-copper sulphide mineralisation including a potential 500m long mineralised strike between three holes.

Down-hole electromagnetic surveys were also completed in several holes and this data is currently being modelled to define targets for follow-up exploration.

CAZ which has a 20% stake in the project, says assay results re expected within six to eight weeks.

Amplia Therapeutics (ASX:ATX) has just received approval from a second ethics committee to conduct the company’s Phase 2 clinical trial of its Focal Adhesion Kinase (FAK) inhibitor, AMP945.

The approval was received from the Human Research Ethics Committee (HREC), following first approval in April.

The green light received today will allow the cancer fighter to accelerate recruitment into the Phase 2 trial, where the AMP945 drug will be studied for its effects on patients with advanced pancreatic cancer.

Earlier results have shown that the addition of AMP945 pre-treatment to standard care gemcitabine/Abraxane chemotherapy regimen increased survival rates in an animal model by 33%.

Electro Optic Systems (ASX:EOS) says the good old Commonwealth of Australia just confirmed its choice of EOS as the Government Furnished Equipment provider for the Army’s Land 8710-1 Littoral Manoeuvre Vessel – Medium capability program for the supply of EOS R400 Marine (R400-M) remote weapon stations (RWS).

The government’s announcement coincided with EOS’ official Australian launch of its R400- M RWS at a special event held at the INDO PACIFIC 2022 International Maritime Exposition.

International naval delegations from 45 countries attended the show. EOS says  the Commonwealth has indicated 36 units of RWS may be required for the full program

TRADING HALTS

Step One Clothing Limited (ASX: STP) – trading halt, pending an announcement regarding the Company’s results guidance for the year ending 30 June 2022.

Talon Energy Ltd (ASX:TPD)  – trading halt, as it awaits an update regarding preliminary drilling results from the Walyering-6 well in the Perth Basin, from the project’s Operator, Strike Energy

Tyranna Resources (ASX:TYL) – trading halt in connection with a proposed capital raising and project acquisition

Ragnar Metals (ASX:RAG) – trading halt pending an announcement in relation to exploration results from the Swedish drilling program

Australian Strategic Materials (ASX:ASM) – trading halt in relation to an equity funding agreement and revisions to a framework agreement that are material to the company

Infomedia (ASX:IFM) – trading halt in relation to receipt of a formal change of control proposal from an Interested Party

MPower Group (ASX:MPR)  – trading halt pending finalisation of a proposed acquisition

Blue Star Helium (ASX:BNL) – trading halt pending drilling results