ASX Resources Top 5: Timely iron ore production, a US listing, and imminent drill results
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Here are the biggest small cap resources winners in early trade Thursday, March 18.
Yesterday, explorer Thor commenced trading the OTCQB Venture market in United States, which is for early-stage and developing companies.
Today’s top resources winner hopes to attract new US investors with the move.
Trading on the OTCQB market has no impact on existing Thor shares, which will continue to trade on the London Stock Exchange (LSE) and the ASX, and no new ordinary shares will be issued as part of the cross-trade.
“We are delighted to be able to commence trading on the OTCQB platform, and to improve access for US institutional and retail investors to invest in the Company and share in the growth of Thor Mining,” exec chairman Mick Billing says.
“In addition to our portfolio of Australian projects, the company holds a 100% interest in exciting uranium and vanadium exploration assets in Colorado, and Utah, where drilling is scheduled shortly, and 100% of the large Pilot Mountain tungsten resource in Nevada,” he says.
“We are hopeful that these projects will be attractive to US investors.”
A drill program designed to test for very shallow copper gold mineralisation at the ‘Nanadie Well’ project in WA has started strongly for this investor favourite.
The first four drill holes hit very shallow copper and gold, aka:
45m at 0.9% copper and 0.2g/t gold from 2m, including 11m at 1.8% copper & 0.4g/t gold from 16m.
Cyprium reckons this shallow, easy to access mineralisation could run the full 750m of strike already defined by the company.
Assay results for the remaining 62 holes are expected in the coming weeks.
In 2007, ASX-listed Bolnisi Gold was taken over by major US silver producer Coeur d’Alene Mines for $1.3 billon.
It was a deal that made Bolnisi one of the great success stories of the junior end of the ASX market.
Key members of the old Bolnisi team are now out to repeat that success with Slovakia-focused gold and silver explorer Prospech, which IPO’ed in December and is a big winner in early trade today.
A big 10,000m drilling program is now underway testing multiple gold and silver targets at the ‘Zemplin’ and ‘Hodrusa’ projects.
The resources company had success in their first hole at Zemplin, with 3m of massive & semi-massive sulphide (galena rich) veining from 86m intersected.
Assays are pending.
Strike’s Apurimac iron ore project in Peru – recognised as one of the highest grade, large scale magnetite projects in the world – could be a considerable earner for the company while it progresses the flagship Paulsens East project towards production.
Once it has successfully crushed ~20,000 tonnes of material, it plans to transport it to, and then export it from, the Port of Pisco about 570km away.
All up, the total free on board (FOB) cost of the Apurimac Premium Lump product at the Port of Pisco is expected to be less than US$70 per tonne – that includes mining, crushing and screening, haulage, port and administration costs.
That’s a huge profit margin at current prices.
“The company notes that the benchmark iron ore price continues to remain very strong – currently ~US$168 per tonne,” Strike says.
“Furthermore, the premium attached to lump ore over fines has increased significantly, reaching record highs this month of ~US$0.51 per dry metric tonne unit.
“Based on Fe content of 64% for the Apurimac Premium Lump product, this would imply an uplift of ~ US$33 per tonne of lump ore over the benchmark iron ore price for Fines, once the Apurimac Premium Lump product is established in the market.”
The initial target is annual production of ~125,000 tonnes of iron ore from specific areas at Apurimac.
First cashflow from sales is expected in the June 2021 Quarter.
Two significant, large geochemical soil anomalies discovered at Leichhardt Creek prospect are consistent with a company-making Intrusive Related Gold Systems (IRGS), says Great Southern.
Leichhardt Creek is part of the Edinburgh Park Project in north Queensland; a region that Great Southern calls ‘elephant country’.
Notable IRGS deposits in North Queensland include Kidston (5million ounces), Ravenswood (8moz) and Mt Leyshon (3.5moz).
Other targets at Fish Creek, Spring Creek and Edinburgh Castle are also being progressed by Great Southern “with further market updates planned”.
Targeted drill testing is planned for later in 2021.