Resources Top 5: Abandoned treasures, golden spin-offs and a surging lithium play
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Here are the biggest small cap resources winners in early trade, Thursday June 3.
Dateline’s historic, abandoned ‘Colosseum’ gold mine in California gets better at depth, data shows.
Dusty old reports show historic exploration – prior to the introduction of the JORC code — defined a combined resource of 1.1Moz gold down to an average depth of 260m below the surface, at 0.5g/t Au cut-off grade.
Only a portion of this was mined before the operation was mothballed in the ’90s.
Data also confirms that mineralisation continues for another 530 metres below the defined resource shell. Grade also improves.
With a gold price 4-5 times higher than in 1992, there is significant potential to re-examine the remaining mineralisation below the open pit as well as explore for depth extensions, Dateline says.
The US-based explorer is spinning off its gold-copper projects into a new company to focus entirely on its ‘Big Sandy’ lithium project in Arizona.
The company will divest its Devil’s Canyon gold-copper project in Nevada, Western Desert gold-copper project in Utah, and the Lone Pine gold project in Idaho into ‘Diablo Resources’, which will be listed on the ASX.
Hawkstone — which will change its name to ‘Arizona Lithium’ — will receive 40 million Diablo shares to be distributed to its existing shareholders.
Hawkstone shareholders will also have the right to participate in a $3.5 million priority offer in Diablo’s proposed $6.5m IPO on the ASX priced at 20c per share.
The explorer is up ~250% year to date.
Gold mine developer Orecorp has received its all-important mining licence approval from the Tanzanian government for the +3moz ‘Nyanzaga’ project.
Once up and running, the operation would produce 213,000oz per year at an all-in sustaining cost of $US838/oz over an initial 12-year life.
“Cabinet approval of the SML is a pivotal milestone towards the development of the Nyanzaga Project,” the company says.
“The company looks forward to working closely with the GoT with the aim of establishing the first new large scale gold mine in Tanzania in over a decade, for the benefit of all stakeholders.”
(Up on no news)
This small cap IOCG hunter took a nosedive in March when deep drilling results at ‘Horse Well’ didn’t live up to expectations.
But this is high risk, high reward stuff, and Cohiba reckon they’re onto something.
Planning is currently underway for up to an additional 12 drill holes in the ‘Horse Well’ area.
(Up on no news)
Altura will spend $1.5m over three years to earn a 51% stake in the Pilbara project.
Meanwhile, Sayona – fresh from a successful lithium mine bid – has kicked off drilling at its flagship Authier project in Quebec.
The stock is up ~520% year to date.