Resources Top 5: An emerging gold discovery in WA’s Goldfields region lights up the bourse

YRL hits 78m averaging 1.2g/t gold at the broader Ironstone Well–Barwidgee project
Kaiser Reef raises $8m to fund development of the A1 Nova gold mine
Unico Silver kicks off drilling at Cerro Leon

Here are the biggest small cap resources winners in morning trade, Monday, October 21. Prices accurate at time of writing.

Yandal Resources (ASX:YRL)

Shares in this small cap goldie have MORE THAN DOUBLED on news of an emerging discovery at the New England granite prospect, part of the wider Ironstone Well-Barwidgee gold project near Wiluna, WA.

The first assay results from the 12-hole, 2400m RC program completed across the New England prospect have been received, returning a standout 78m intersection averaging 1.2g/t gold from 96m in hole 24IWBRC0039.

The other hole, 24IWBRC0044, was completed 170m to the north-west, intersecting 14m at 1.8g/t gold from 63m including 3m at 4.9g/t gold from 64m.

Gold mineralisation within the emerging discovery, now called Siona, remains open at depth and along strike.

YRL managing director Chris Oorschot described the results as “exceptional”, suggesting they may point to a “significant emerging gold discovery” within the Ironstone Well-Barwidgee project area.

The timing of this discovery is even more compelling given the current gold price setting.

Gold prices reached all-time highs last week, punching through the US$2700/oz mark with the macroeconomic and geopolitical backdrop expected to remain supportive of gold investment well into 2025.

YRL plans on completing follow up drilling at Siona as soon as possible to determine the geometry of the mineralisation so that the exploration team can begin to assess the scale of the mineralised system.

Kaiser Reef (ASX:KAU)

KAU is in position to complete its A1 mine production plan and ramp-up the expansion for high-grade gold production following a successful $8m raise via a placement to sophisticated and professional investors.

As well as mine development, KAU will spend the placements funds on restarting drilling activities at both the A1 mine and Maldon project within the central portion of the Bendigo-Ballarat zone of the Lachlan Fold Belt.

KAU says the engineering plan will involve creating a modern engineered mine layout without the compromises faced by the current operations.

The company has invested ~$24 million in capital costs to access the Nova gold project, situated below the remnant mine workings and has implemented significant power, fleet, and ventilation upgrades.

The A1 gold mine has operated almost continuously since 1861 and historically produced ~800oz of gold per vertical metre, with some levels exceeding 1000oz per vertical metre, a benchmark for significant gold mines.

Most of the ore was exploited in the first 100-year mining phase with modern remnant mining over the past 30 years limited to producing less than 237oz per vertical metre.

Godolphin Resources (ASX:GRL)

(Up on no news)

GRL is supercharging exploration at its Lewis Ponds gold and base metals project in New South Wales amidst unprecedented interest in the hot Lachlan Fold Belt region from majors.

As much as $300 million of investment has been pledged by mining giants in deals to unlock major gold and base metals prospects in the area over the past 18 months.

It’s set the alarm bells ringing for many investors and companies on the attractiveness of Godolphin Resources’ (ASX:GRL) Lewis Ponds asset.

The project near the city of Orange already hosts an inferred mineral resource of 6.2Mt at 2g/t gold, 80g/t silver, 2.7% zinc, 1.6% lead and 0.2% copper. The metal content of its gold inventory alone is a hefty 398,000oz.

But Godolphin thinks there is the potential to identify a much bigger prize in a larger mineral system extending some 9km to the south-east.

Interest from external parties saw GRL raise $1.2m last month with a $300,000 share purchase plan also launched for existing holders at the same price.

The raise was corner-stoned by existing shareholder, American Rare Earths (ASX:ARR), which will hold a 19.9% stake in the company following completion.

Unico Silver (ASX:USL)

Drilling at USL’s Cerro Leon silver project in Argentina has kicked off with an initial 5000m reverse circulation campaign aiming to expand the project’s current 91Moz silver equivalent resource for 16.5Mt at 172g/t silver equivalent.

Six prospects where silver mineralisation is open at depth or along strike have been prioritised for drilling, including several new areas that fall outside of the current MRE.

The first assays are expected by mid-December.

Cerro Leon is strategically located within the same structural corridor that is host to AngloGold Ashanti’s world-class Cerro Vanguardia mine.

It is host to the second largest vein field in Argentina’s Santa Cruz province, second only to AngloGold Ashanti.

Ark Mines (ASX:AHK)

(Up on no news)

AHK has been establishing the commercialisation pathway for its Sandy Mitchell project, which was further validated after the calculation of a new 71.8Mt resoruce.

Carried out by independent consultants HGS Australia, the resource is wholly categorised as measured and totals 71.8Mt at 1733ppm monazite equivalent using a lower cut-off grade of 700ppm.

In addition to the high value economic commodities modelled, the MRE included estimates for arsenic and sulphur for environmental considerations.

AHK believes the updated resource positions the company to execute on its stated development strategy for Sandy Mitchell, with low-cost mining of rare earths and heavy minerals combined with low-cost downstream processing through simple gravity separation.

At Stockhead we tell it like it is. While Godolphin Resources and Ark Mines are Stockhead advertisers, they did not sponsor this article.