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Mining
Here are the biggest small cap resources movers in early trade, Wednesday 19 July.
(Up on no news)
Lithium darling SLM has bounced back today after a string of daily losses saw it tumble from ~$1/sh.
The catalyst was some less-than-exciting early drilling results from the much-hyped Jaguar project in Brazil.
Hole one was a duster, thanks “incorrect drill orientation”, with reasonably thin spodumene-rich central core sections up to 20% hit from 30m-38.2m in hole 2 and from 44.3m-52.2m in hole 3.
Drilling is ongoing, with a second rig being tendered to commence an additional 5,000m program.
Prior to Monday trade SLM was 1200% year-to-date after joining big brother and major shareholder Latin Resources (ASX:LRS) in its Brazilian lithium hunt.
Sprott-backed TGM says drill and blast is underway at its Frankfort mine in South Africa.
An initial 3000t bulk sample will be processed through a nearby mill via a toll treating arrangement to deliver the aspiring mid-tier gold producer some near term cashflow.
Once the bulk sampling trial is complete TGM “will explore its options to expedite early cash flow opportunities” from Frankfort, one of four mines comprising the TGME Underground Project.
A recent study estimated 1.24Moz of production across an initial 13-year life from TGME Underground, which would cost ~$100m to build.
The project could generate pre-tax NPV of US$324m ($432m) and pre-tax Internal Rate of Return (IRR) of 65% at an average gold price of US$1,642/oz.
The stock says it will be one of the lowest cost producers on the ASX and in South Africa, with a projected cost under US$900/oz.
TGM controls around 6.1Moz of resources across a string of historic mines and is aiming to revive what was one of South Africa’s first gold fields 130 years ago.
The $80m capped stock is up 60% year-to-date.
(Up on no news)
PEC is chipping away at its flagship 137Mt Beharra silica sands project 300km north of Perth.
A painfully slow environmental approvals process – thanks to “extended Government processing delays” – is now in its final stages.
The expected timeline for approval remains as later in 2023, it says.
A 2021 PFS envisaged a profitable, long life 1.5Mtpa operation at Beharra which would cost just $39m to build.
The sub-$10m capped minnow has also been keeping an eye out for suitable M&A targets. It is down 25% year-to-date.
BTR has reported multiple thin but high-grade gold intersections up to 39g/t in maiden drilling at the Menzies project in WA, which was acquired in May via its takeover of Kingwest Resources (ASX:KWR).
The deal creates a gold company of scale in the Leonora-Laverton district, which is undergoing consolidation by $1.35bn-capped Genesis Minerals (ASX:GMD).
Menzies includes the high-grade gold field which historically produced 787,200oz at an eyewatering 18.9g/t between 1895-1995.
A small mining operation will kick off at Menzies this year via a Profit Share Joint Venture with BML Ventures.
Meanwhile, the company wants to bolster its 1Moz global resource inventory “with the view to becoming a substantial future ASX gold developer and producer”.
The inaugural 37-hole, for 4500m program at three Menzies prospects – Aspacia, lady Irene and Lady Shenton-Lady Harriet — has so far “returned numerous high-grade hits typical of the Menzies Goldfields”, the company says.
“This program has targeted areas of higher grades that have the potential to form possible ‘early-stage’ mining opportunities and for JORC mineral resource growth,” BTR managing director Alex Rovira says.
“The increased geological understanding from the Lady Irene program will allow us to refine drilling targets in the Northern Trend of our Menzies gold project, with several targets already identified for further investigation along the 7km of under-explored tenure, including our recently acquired tenement package from Ardea Resources.
“The rig also completed a program at Aspacia targeting high grade ‘Menzies style’ mineralisation under the Aspacia headframe around the historical underground mine; and also tested three targets in the Lady Shenton-Lady Harriet ‘Link Zone’ which presented a great opportunity to explore for shallow oxide material whilst the rig was on site.
“Historic records from Aspacia suggest a +30g/t Au head grade, which is replicated in drilling results received thus far with an unexpected stope void intercepted in the Aspacia West area, suggesting potential for structural repeats or stacked lodes, which will be assessed once all assays are received and interpreted.”
A bunch of assays are pending, with the drill rig now mobilised to Cork Tree Well (Laverton gold project) for an ~2,000m RC campaign.
The $25m capped stock is down 35% year-to-date.
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