• Native Mineral Resources’ Music Well’ project returns high-grade gold in rock chips up to 129 g/t
  • Indika Energy to acquire gold project developer Nusantara Resources for 35c per share
  • Lachlan Star, Woomera, NickelX up on no news

Here are biggest small cap resources winners in early trade, Monday June 28



The ‘Music Well’ project in WA continues to return high-grade gold in rock chips up to 129 g/t.

These results which include “small flakes and nuggets of visible gold” continue to validate NMR’s belief that Music Well could host a big mineralised system.

Drilling to test this theory starts late July.

“Music Well continues to evolve as a very high-quality gold project and these latest results demonstrate that the gold grades obtained from previous surface samples continue at depth, with the target zone remaining open in all directions,” Native Mineral Resources boss Blake Cannavo says.

“We have a busy pipeline of work planned for our gold and copper projects over the coming months.”

The ~$8.6m market cap stock is up 50% since listing in November last year.



It’s takeover time.

Large shareholder Indika – also joint venture partner in the advanced 2.28moz Awak Mas gold project in Indonesia — is offering Nusantara shareholders 35c per share.

That’s a 19% premium to the 5 day volume weighted average price (VWAP). NUS is recommending shareholders take the offer.

“The Indika proposal … comes at an opportune time for NUS shareholders to crystallize value and de-risk their investment in the company,” NUS chairman Greg Foulis says.

“Awak Mas is at a key inflection point and the transaction removes a variety of risks associated with progressing the project from feasibility to production, including large and heavily dilutive capital raisings, exposure to gold price, jurisdictional risks and risks in relation to construction, commissioning and production.”



(Up on no news)

In June last year the former shell picked up the ‘Koolan’ project near Chalice Gold Mines’ (ASX:CHN) regionally defining Julimar nickel-copper-PGE discovery near Perth in WA.

It was a great move, with the $72m market cap explorer up 420% over the past 12 months.

Successful explorer Liontown (ASX:LTR) has since farmed into Koolan, where recent first pass sampling has been “very encouraging”.

“The two new anomalous zones defined require infill sampling and further geological interpretation to define the targets prior to first-pass drill testing,” Lachlan Star director Bernard Aylward said May 6.



(Up on no news)

Last week, the explorer released some thick, low grade gold results from maiden drilling at ‘Three Bears’ prospect, part of the Mt Venn JV with Cazaly Resources (ASX:CAZ) in WA.

Drilling in continuing, with up 7km of gold-rich strike to explore. Results will be released as they come to hand, the company says.

“While still very early days, I’m encouraged by the thickness of the gold mineralisation intersected to date, which gives us 80m in horizontal width, at shallow depths,” Managing director Kevin Seymour said June 24.

“We are only scratching the surface of what we consider to be an extremely prospective, large scale gold prospect with a potential strike length of up to 7km.”

The ~$10m market cap stock is up 120% over the past 12 months.



(Up on no news)

The newly listed explorer will kick of drilling in early July at ‘Fire Dragon’ nickel-copper target, part of the Biranup project in WA.

The Phase 1, 1,200m program will test Fire Dragon and some promising conductors defined by a recent EM survey.

EM surveys map sub-surface changes in electrical conductivity and are a useful tool for finding sulphides.

NickelX also has a gold project called ‘Black Dragon’, about 30km from the tier 1 300,000ozpa Tropicana mine in WA.

Exploration works at this high priority target are planned for the September Quarter 2021.