Gold Digger: A weekly recap of the news driving ASX small cap gold stocks
A 4.21 per cent gain in January – from ~$US1,513.50 to $US1,583.50 – is gold’s biggest one-month increase since August last year.
This renewed appetite for gold as a safe haven investment comes as coronavirus fears grip overheated financial markets, mostly due to the risks it poses to China’s large economy.
“Looking ahead, we expect gold’s safe haven qualities to remain at the forefront of investors’ minds as they navigate global tensions, low yields, and stretched equity valuations,” World Gold Council head of market intelligence Alistair Hewitt says.
>>>Scroll down for this week’s top 5 small caps
For our big miners, which have been reporting on the December quarter, it was a mixed bag last week.
New S&P/ASX 20 entrant Newcrest (ASX:NCM) dropped about 10 per cent on a solid looking quarterly report (production up to 551,000oz, costs down to $859/oz). It pared some of those losses after announcing the sale of its Gosowong mine in Indonesia for $90m.
Here’s how ASX gold stocks performed for the period January 27 — Febuary 03 [intraday]:
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Marmota (ASX:MEU) +39%
The innovative explorer hit 4m grading 24 grams per tonne (g/t), 68m from surface at its flagship Aurora Tank project. Pretty good, you might say.
But what makes this intercept interesting is that it comes from the newly discovered NW flank zone, found in Marmota’s most recent 2019 drilling program while following up elevated tree sampling.
That’s right – tree sampling.
Similarly, Oklo found a new thick, high-grade zone at the Seko deposit, part of its flagship Dandoko project in Mali.
Results included 55m at 7.65g/t, about 50m from surface.
The explorer – which counts Resolute Mining as a major shareholder – will incorporate these new results into a maiden resource estimate at Seko, due for completion in Q2.
Nagambie listed in 2006 to explore around its former namesake mine in rural Victoria, which produced about 134,000oz of gold from open pits between 1989 and 1995.
That never really panned out, so the company then looked at storing excavation material produced from tunnelling and other excavation work at the West Gate Tunnel, Melbourne Metro Rail and North East Link in the old open pits.
While this project remains on the table, Nagambie is now refocusing on actual exploration as Fosterville reinvigorates the region.
Last week, it announced a strategic partnership with Canadian gold company Mawson Resources to explore and develop Nagambie’s extensive tenement holdings.
“Mawson has a very experienced and successful geological team and their endorsement of our model-based use of geophysics, supported by the first ever deep diamond drilling in the Waranga Domain, is very gratifying,” Nagambie chairman Mike Trumbull says.
“The Mawson chairman has said that he looks forward to working with us to find Victoria’s next major Fosterville-style gold deposit in Victoria and I totally concur.”
Resolution — formerly Northern Cobalt — revealed plans to acquire up to 80 per cent of an Alaskan gold project called 64North in October last year.
64North literally surrounds Northern Star Resources’ (ASX:NST) high-grade Pogo mine, which has produced 4 million ounces of gold over the past 13 years and has another 6 million ounces in resource and reserves.
No news last week, but the explorer says a 7500m drilling program will kick off in the current quarter, focused on targets immediately adjacent to Northern Star’s recently announced Goodpaster discovery.
Manas’ Mbengué gold project (MGP) in Côte d’Ivoire is close to some really big operations, like Barrick’s 4.5moz Tongon mine and Resolute’s 11.5moz Syama mine.
The explorer has now increased the project area from ~300sqkm to over 647sqkm.
“Manas has been systematically exploring at Mbengué and our activities have already identified a number of major structures with potential to host significant gold deposits,” Manas chairman Alan Campbell says.
“The newly expanded MGP project area is well located close to existing mine infrastructures in an underexplored portion of the highly-prospective Senoufo greenstone belt.
“With its strong cash position and low burn rate, the company is ideally placed to take advantage of any exploration success as our activities progress through 2020.”