Gold Digger: These 4 gold explorers shrugged off a bad week for ASX stocks
Link copied to
A tumultuous week for markets means there aren’t many big winners this week.
The benchmark ASX 200 index fell a significant ~3.3 per cent.
Gold stocks – especially the miners — were generally weaker following a drop in the price of the precious metal.
Of the 208 goldies on our list 38 went up, 155 went down, and 15 didn’t move.
Here are four standout stocks that bucked the trend.
Here’s how 208 ASX-listed gold stocks performed October 26 – October 30 [intraday].
Scroll or swipe to reveal table. Click headings to sort. Best viewed on a laptop:
E2 METALS (ASX:E2M) +236%
E2 made a “genuine new greenfields discovery” at the Conserrat project in Argentina, intersecting an incredible 18m at 47g/t gold and 208g/t silver.
‘Greenfields’ refers to areas which are un/underexplored.
The hit at the Mia prospect “compare with the best gold and silver epithermal vein systems globally with respect to grades and thickness”, E2 managing director Todd Williams says.
“This is a watershed moment for E2 Metals that confirms the outstanding potential of the Conserrat project, with many Mia-style vein targets still to test,” he says.
The minnow raised $1.6m to explore its Blackwood gold project in Victoria, where 220,000oz has been mined historically at an ore grade of between 16-23g/t gold.
These days, 5g/t is generally considered ‘high grade’.
The project, home to 15 historical production shafts and +250 underground workings, has seen very little in the way of modern exploration in the past 40 years, says the company.
Work will kick off “once all approvals from the Victorian mines department is finalised and discussions with the community is completed”.
The popular gold explorer raised $3.3 million in a heavily oversubscribed placement.
The company had initially set out to raise $2m but was inundated with demand and closed the book within 90 minutes.
This appetite from investors is not surprising. REZ’s share price surged more than 200% last week after the company released a new set of exploration results from the ‘Gigante Grande’ prospect at its East Menzies project.
New hits like 20m at 5g/t gold show that Gigante Grande could host “a very large mineralised system”, the explorer says.
ORA GOLD (ASX:OAU) + 13%
This busy explorer kicked off a new drilling campaign on Monday, hunting for high grade gold at the Abbotts project in WA.
The 30-hole program should be done and dusted by the end of November.
On Friday, it inked a JV deal with copper miner Sandfire Resources (ASX:SFR), which will acquire 85 per cent in Ora’s Red Bore copper project.
Red Bore is next door to Sandfire’s company-making DeGrussa copper-gold mine in WA.
It’s a solid deal for Ora, which has the option to sell its 15 per cent interest if/when Sandfire reaches ‘a decision to mine’.
if it doesn’t want to sell, Sandfire must continue to cover Ora’s share of development costs by way of interest free loans. These are repayable from any profit Ora makes from Red Bore production.