Resources Top 5: A rebounding iron ore play, uranium favourites, and another cheap(ish) lithium stock
Here are the biggest small cap resources winners in early trade, Tuesday January 11.
After getting a nice leg up during the ‘ASX Gold Rush of 2020’ this $8m market cap struggler has tumbled 76%.
Its main game is ‘Kurnalpi’ in the WA goldfields, where it has today picked up another 109sqkm tenement right “in the heart” of the project.
At 1269sqkm, Kurnalpi now represents one of the largest single landholdings in this mineral-rich region.
It is also relatively under explored due to a large part of the tenements being covered by ‘transported’ soils and sands, RGL says.
A review of all historical data confirms prospectivity for both gold and nickel at this new tenement, with previous shallow drilling returning results up to 3m at 0.2% nickel and 0.2% copper.
“Overall, the newly granted E 28/3034 tenement offers significant new potentially mineralised targets for Riversgold to explore, not only for gold but also for nickel,” RGL says.
“The application of geophysical targeting tools, which are also being applied in other mafic/ultramafic intrusive systems such as Julimar (ASX: CHN), will help Riversgold quickly assess the prospectivity of this tenement.”
RGL had $271,000 in the bank at the end of September. It has also received $US1.1m from the sale of its Alaskan assets.
(Up on no news)
Gold and lithium explorer NAE has pumped for two straight days to be up 65% on no news.
Today, the $21.5m market cap stock said it had “no idea what’s going on” in response to an ASX price query, then kept climbing.
NAE has gold projects in the Pilbara and New Zealand, and a coal asset in Scotland.
The Pilbara project is also prospective for lithium, the company says.
The first 1500m of a 5000m drilling program was completed in the Pilbara in December, focused on several ‘Hemi-like’ gold targets.
NAE had cash reserves of $5.77m at the end of September.
(Up on no news)
While down from its mid-September peak, this popular $200m market cap uranium play is still up 560% over the past year.
In August last year, AGE raised $10.7m to accelerate its key projects – ‘Samphire’ and ‘Big Lake’ in South Australia and ‘Alligator Rivers’ in the Northern Territory.
On 8 December, sonic core drilling at Samphire was well and truly underway, with assay results expected in “some 6 weeks”.
Which is about now.
Following the sonic core drilling, up to 40 rotary mud holes will be drilled in early 2022. Holes will be designed to help upgrade the resource and find extensions to mineralisation.
A Scoping Study – the first proper look at the economics of building a project – will follow.
At the earlier stage Big Lake project, a significant maiden drilling program is targeted for Q2 2022.
(Up on no news)
ENT is a project generator, which means it partners with other (usually more cashed up) companies to help pay for exploration.
Spreading the risk, and the reward.
Gold miner Evolution Mining (ASX:EVN) withdrew from a third project farm-in late December.
It also has a couple of wholly owned projects like ‘Bullfinch North’, where multiple shallow high-grade gold intersections (+20g/t) were targeted for follow-up drilling in December.
The $8m market cap stock is down 15% over the past month. It had $1.26m in the bank at the end of September.
Currently priced at ~$US125/t for benchmark 62% fines, iron ore is making a strong recovery in early 2022.
Which is good news for project developers like MGT, which is trying to get its large, ~$600m Razorback mine in South Australia up and running.
The stock could also benefit from the rise of ‘green’ steel, which needs high grade iron ore like the stuff MGT is looking to produce.
Razorback would deliver an average of 2.7Mtpa of 67.5% plus magnetite concentrate over an operating life of 23 years and has the advantage of utilising green power from South Australia’s wind-rich grid.
A DFS is planned to be released late this year.
The $110m market cap stock has rebounded from recent lows to be up 80% over the past month.