Top 10 at 11: ASX dives as small caps drill for gold and lithium

Morning, and welcome to Stockhead’s Top 10 (at 11… ish), highlighting the movers and shakers on the ASX in early-doors trading.

With the market opening at 10am sharp eastern time, the data is taken at 10.15am in the east, once trading kicks off in earnest.

In brief, this is what the market has been up to this morning.

Energy the only bright spot

The ASX’s worm has certainly turned this morning, losing 0.63% or 55 points in the first hour after three days of gains.

Of our 11 sectors, 10 are flashing bright red. Info tech is leading the way down, having shed 0.96% this morning.

Energy is the only point of resistance, gaining 0.49%. Oil prices rose 1.6% overnight and have ticked up slightly since to US$67.94 a barrel of Brent crude.

Negotiations to resume oil exports from the Kurdistan region of Iraq stalled out on Tuesday, applying pressure to global supply.

And look out – it’s accordion hands a-gogo, because US President Trump also insisted NATO European countries cease oil imports from Russia, adding his special brand of chaos into the mix.

Gold rose again overnight to fresh highs. Futures are hovering at US$3795 an ounce at present.

SMALL CAP WINNERS

In the news…

Yandal Resources (ASX:YRL) has hit 50m at 1.3 g/t gold in drilling at the Arrakis gold discovery, part of the Ironstone Well-Barwidgee gold project. The drill hit extended the known mineralised zone of Arrakis 400m to the northwest.

YRL is awaiting another three results from the Arrakis trend, testing its 2.2km strike to the northwest and southeast. The company is planning to drill another 1,200 metres of diamond drilling in October, as well as infill reverse circulation drilling.

Fulcrum Lithium (ASX:FUL) has hit lithium mineralised claystones in all drill at the Alkali Flats project. The lithium-bearing zone stretches over 112m thick in one hole and 67 in a second, grading above 300 parts per million lithium.

FUL reckons a 9km2 zone is prospective for lithium within the project, with mineralisation remaining open for exploration in all directions and at depth.

Adavale Resources (ASX:ADD) has hit its widest gold intercept in 30 years in maiden drilling at the London Victoria gold mine.

ADD struck 48m at 0.82 g/t gold, translating to about 40 gram-metres. Management says the results indicate the gold mineralisation at London Victoria stretches well beyond the current JORC 2012 resource of 107k ounces of gold, open at depth and along strike.

Flagship Minerals (ASX:FLG) is celebrating a successful review of its Pantanillo gold project dataset.

FLG will now look to fast track a foreign resource estimate of 1.05Moz of gold to the JORC code and target extensions of said resource with drilling programs in an effort to drum up more ounces from the central to eastern portions of the mineralised zone.

SMALL CAP LAGGARDS

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.