Resources Top 5: A new nickel-copper discovery, and some good news for bashed-up gold producer Resolute
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Here are the biggest small cap resources winners in morning trade, Wednesday April 14.
In December, Orminex sold 50 per cent of its undeveloped 248,000oz Penny’s Find gold mine for $1.5m to Horizon Minerals (ASX:HRZ), which will shell out another $1m to fund early development.
The JV has now reported multiple significant drilling intercepts testing for the edges of this gold system, including 5m @ 5.27g/t gold from 180.3m and 3.7m @ 7.46g/t gold from 215.3m.
The high-grade results indicate excellent gold continuity at depth and along strike, with multiple intercepts containing visible gold, Orminex says.
“The first round of high-grade drilling results demonstrating multiple areas of significant width are a testament to the calibre of the Penny’s Find gold deposit and we very much look forward to receiving results for the remaining 8 holes of this program, expected in the current June quarter,” Orminex director Dean Hely says.
Solid redemption arc.
A new high grade discovery at conductor MAD195_p1 (catchy) — part of the flagship ‘Mt Alexander’ project in WA — sent the explorer soaring in early trade.
Drilling hit ~11m of continuous nickel-copper sulphides, with early XRF readings picking up 7.34% nickel and up to 4.74% copper. Very nice.
An additional two EM conductors are located near MAD195_p1 and are also interpreted to have a massive sulphide source.
The combined strike length of these conductors “suggests the presence of a significant volume of high-grade mineralisation in this location”, the company says.
“St George’s diligent and systematic exploration efforts at Mt Alexander have already yielded four high-grade nickel-copper sulphide discoveries across a 5.5km strike length,” exec chairman John Prineas says.
“The success with MAD199 extends the strike length and is enormously encouraging as we continue to prove up further nickel-copper mineralisation along the Cathedrals Belt.”
Drilling continues 24/7, the company says.
Another goldie which struggled last year.
The already limp share price of gold miner Resolute got spanked last month when Ghana decided to cancel its mining licence at the undeveloped Bibiani gold mine.
This happened just as Resolute was in the process of selling it to Chinese company Chifeng for ~$US105m.
That mining licence has now been restored “to maintain investor confidence globally and in particular maintain Ghana’s reputation as the preferred destination for mining investment in Africa”, the company says.
However, the Ghanaian government “objects to the purported sale or transfer to Chifeng … without the express prior approval of the Government”.
The stock has pared some of its massive losses over the past year, up 16% in early trade.
(Up on no news)
Relatively new ASX listing Metal Hawk (ASX:MHK) is now drilling its Kanowna East gold project in the WA goldfields.
Kanowna East is 8km from Northern Star’s (ASX:NST) 5moz Kanowna Belle gold mine.
“As well as drill-testing an unexplored ~2.5km target structural corridor for new zones of mineralisation, this phase of drilling will look to expand the extensive zone of gold anomalism at the Little Lake prospect,” managing director Will Belbin says.
“Following this program, we plan to commence deeper Reverse Circulation (RC) drilling in order to determine the bedrock source of gold anomalism.”
Stage 1 drilling was completed in March and final results are expected shortly, the company said April 12.
WA iron ore-gold explorer CZR released a presso this morning which was clearly popular with the punters.
CZR has five projects, all in JV with companies owned by highly successful prospector Mark Creasey.
Its main game is development of the Robe Mesa iron ore deposit, where it is “moving towards a DFS and approvals for mining during 2021”.