Diggers & Dealers: Your Day 3 battleplan
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Mount Gibson Iron (ASX:MGX): The WA-focussed iron ore miner was heavily sold off after the flooding of its Koolan Island mine in 2014.
You can see why:
But the company has worked hard to bring this high grade mine back into production.
In May, its share price peaked around $1.30 as ore sales recommenced before falling back to about 79c currently. Still, the stock is up almost 84 per cent over the past 12 months.
Northern Star Resources (ASX:NST): In May 2010, NST had a $7.6m market cap. Nine years and multiple Tier 1 mines later, and the ASX100, 840,000ozpa gold producer is now worth around $8bn.
From about 2c to $12.62; That’s a lazy +63,000 per cent return on investment over the past decade or so. Yep, you read that right.
West African Resources (ASX: WAF) : This developer reckons it’s on track for its first gold pour from its Sanbrado project in Burkina Faso in mid-2020.
Construction activities remain on budget and on schedule, WAF says.
And first pass gold control drilling program at M1 South is done, with significant results including 10m @ 15.4 g/t Au from 32m, and 18m @ 8.3 g/t Au from 3m.
Battery innovator Lithium Australia (ASX:LIT) has just hit exceptional grades of up to 3 per cent lithium oxide in the Youanmi province of WA.
And managing director Adrian Griffin says it also looks “quite large”.
“The interesting thing is that we initially drilled along the outcrop because it’s easy, targeting stuff that’s down dip,” Griffin told Stockhead on the sidelines of Diggers & Dealers.
“But the best intersections that we got were undercover — the blind drill holes came up the best of the lot.
“We’ve had a very high success rate. 54 RC holes – I think about 47 of them show lithium mineralisation.
“Effectively, everything along strike [1.2km] has hit mineralisation.”
But Lithium Australia isn’t a one trick pony.
The company wants to be the first Australian company to do everything from mining lithium to making batteries.
“Today, you have spodumene producers producing concentrate – they need a profit,” Griffin says.
“They on sell that concentrate to chemical producers, who takes a profit when they sell it to cathode powder producers, who makes a profit when they sell it to cathode producers, who sell it to battery producers – who also want profits.
“You have half a dozen profit centres on the way through.
“But if you’re vertically integrated you can deliver a cheaper product to the consumer.
“Ultimately, that’s the way we want to head.”