Resources Top 5: A monster gold resource and two aspiring copper miners
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Here are the biggest small cap resources winners in early trade, Friday December 3.
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CLA is focussed on copper-gold exploration and development in the Philippines.
Its assets were owned by Freeport-McMoRan, one of the world’s largest copper-gold producers, before being opportunistically acquired and subsequently vended into CLA.
“Having spent a considerable portion of my forty-plus year career developing copper-gold assets in the Philippines, which included the development from feasibility to production of one of the country’s most successful copper mines, I can attest to the quality of Celsius’ assets,” CLA chairman Martin Buckingham said in this year’s Annual Report.
A new scoping study on the ‘MCB’ copper-gold porphyry project has put some firm numbers behind these comments.
The study estimates 16,000tpa copper and 19,000ozpa gold production over an initial 25-year life.
At a US$4/lb copper price and $US1,695/oz gold price, this results in post-tax NPV of US$464m (~A$650m) at an IRR of 31%. Very healthy.
Initial CAPEX of US$253m would take just 2.67 years to pay back.
Numbers that can be improved further via more detailed studies, the company says.
The $23m market cap stock is down 16% over the past month, and 60% year-to-date. It had $5.1m in the bank at the end of September.
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Another potential beneficiary of the copper boom.
ANX’s main game is the ‘Whim Creek’ copper-gold-PGE project in the Pilbara, where a scoping study predicts ~11,000tpa copper production (Cueq) over an initial 5-7 years for free cash flow (profits) of ~$196m.
It would cost about $52m to build. A DFS is due to be released in Q2 next year and, if that goes well, a final investment decision pencilled in for Q3.
ANX already has $US20m in debt funding locked in from global miner Anglo American, subject to the results of the DFS.
The $32m market cap stock is down 18% over the past month, and up 80% year-to-date. It had $6.4m in the bank at the end of September.
The company has expanded the size and grade of its monster ‘Witwatersrand Basin’ gold project (WBP) to 4.28Moz at an ore grade of 4.58g/t.
Increasing the mineral resource estimate by 20% in ounces (724,000oz) and grade by 0.32g/t sees near term producer WWI ending 2021 on a high note, says managing director Jac van Heerden.
“Moving into the 4Moz figure range at a robust grade of 4.58g/t gold once again confirms the vigorous nature of the gold resources contained within the Witwatersrand Basin Project,” he says.
“We are very much looking forward to a prolific 2022, commencing with the production from our Early Mining Initiative.”
First ore from initial mining is expected in Feb 2022. WWI is aiming to produce ~ 5000–8500 tonnes per month, which will be toll treated.
Longer term, this resource increase has prompted WWI to review an August 2021 WBP Scoping Study which projected 80,000ozpa to 90,000ozpa of production over 18 years.
The review — which will result in an updated production target and financial modelling — is now anticipated to be completed for release in February 2022.
The $72m market cap stock is down 5% over the past month, and 52% year-to-date. It had $5.6m in the bank at the end of September.
The stock formerly known as Force Commodities says it hit massive sulphides in its first hole at ‘Gibsons’, part of the ‘Halls Peak’ project in NSW.
Massive sulphide intervals (the best, highest-grade stuff) have been intersected in the first 20m downhole on the first day of drilling from hole CRR21DD — between 6.4m-7.4m, 10.75m-11.60m, and 13.3m-17.1m.
Drilling is ongoing, and cores will be expressed to the lab in Brisbane for assaying once this hole is completed at a target depth of 140m.
It’s the first hole of a planned 2500m program.
“We couldn’t ask for a better start to our drilling campaign at Gibsons after intersecting massive sulphide mineralisation in our first drill hole,” CRR managing director Alex Biggs says.
“We believe that what we see here is indicative of the larger Halls Peak system and we will continue drilling with a view to define the scale and potential of this asset.”
The $59m market cap stock is up 25% over the past month and 150% year-to-date. It has about $1.7m in the bank at the end of September.
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MIO is dumping its non-core WA gold and lithium projects into spin-out stock Infinity Mining (ASX:IMI).
IMI was looking to raise between $7m and $10m in its IPO. The offer has now closed and listing on the ASX is imminent.
For MIO, the spin-out will allow it to focus solely on the development of its flagship magnetite iron ore projects at ‘Lake Giles’, where a Bankable Feasibility Study is entering its final stages.
$114m market cap MIO is up 19% over the past month, and down 8% year-to-date.
It had $4.7m in the bank at the end of the September quarter.