Resources Top 5: An emerging zinc-lead miner, lithium potential, and a nickel discovery confirmed

Assays confirm high-grade nickel discovery at Metal Hawk’s Berehaven project
Zinc-lead project developer Ironbark bolsters board with non-exec directors Alexander Downer and Paul Cahill
Red Dirt uncovers lithium potential at the newly acquired 141,000oz ‘Mt Ida’ gold project

Here are the biggest small cap resources winners in early trade, Tuesday September 28.

METAL HAWK (ASX:MHK)

Earlier this month, the explorer rerated after uncovering Kambalda style nickel in maiden drilling at the ‘Berehaven’ project near Kalgoorlie.

Assays now confirm this is a high-grade nickel discovery, the company says.

Expedited assay results have been received for the lower section of the discovery hole BVNC002 at the ‘Commodore’ prospect which intersected 5.89% nickel from 144m to 145m.

“We believe that the mineralised sulphide zone at Commodore may represent part of a significant untested komatiite system,” managing director Will Belbin says.

“This is an outstanding result at such an early stage and certainly validates our geological model and exploration targeting.”

Upside abounds, because this area has never been drilled for nickel before, the company says. This is partially because of a thick layer of iron-rich laterite which has made surface EM surveys – a useful tool for finding sulphides – ineffective.

The $36m market cap stock is up about 300% on its November 2020 IPO price of 20c per share.

IRONBARK ZINC (ASX:IBG)

After more than a decade, Ironbark’s SEDEX style Citronen project in Greenland is at the pointy end of the development cycle.

Sedimentary exhalative deposits (SEDEX) are monstrous accumulations of zinc and lead, originally formed by the discharge of metal-bearing fluids onto ancient seafloors.

These super giant Tier 1 deposits account for 25% of global zinc and lead production, and six of the 10 largest active zinc mines globally.

They are also an important source of silver and copper.

Ironbark has now bolstered the board with non-exec directors Alexander Downer AC and Paul Cahill as financing discussions continue.

Downer was Australia’s longest ever serving Foreign Minister, while Cahill was Group Head of Business Development and Head of Strategic Relationships Management at Anglo American.

“Alexander needs no introduction, and he is perfectly suited to help Ironbark navigate the complexities of potential US, Greenlandic and Danish government involvement at Citronen,” IBG managing director Michael Jardine says.

“Paul, with his long and successful career in strategic mining deals as both adviser and principal, will likewise be very valuable in closing out a funding package that will ultimately allow for development to proceed at Citronen.”

$51m market cap IBG is up 105% year-to-date.

RED DIRT METALS (ASX:RDT)

The explorer formerly known as TNT Mines believes there is lithium potential at the newly acquired 141,000oz ‘Mt Ida’ gold project in WA.

While conducting its due diligence, Red Dirt identified 44 drill holes in the Mt Ida dataset that were either logged with pegmatite occurrences or assayed incidentally for lithium as part of a multi-element analysis.

Of this subset of historical drill holes, 15 holes contain assays for lithium and tantalum.

Importantly, no historic exploration has been carried out with the intention of targeting lithium, the company says.

“This opens up large areas on both the eastern and western limbs of the granitic intrusive contacts for future exploration and will complement the Company’s aggressive gold/copper exploration program at the Mt Ida Project,” Red Dirt says.

Mt Ida includes a bunch of historic gold mines which produced greater than 300,000 ounces of gold at an extraordinary head grade of 17.2 g/t.

The $63m market cap stock is up 183% over the past month.

CANNINDAH RESOURCES (ASX:CAE)

First assays from an ongoing drilling program at the historic Mt Cannindah copper gold silver project in central Queensland are in – and they look good.

The top portion of hole two hit 117m at 1.01% copper, 0.39 g/t gold and 28 g/t silver from 34m to 151m, with assays awaited for the 180m interval from 150m to 330m.

This bottom portion “contains visual primary copper mineralisation, many metres of which looks similar in tenor to the 34m-151m interval”, the company says.

Hole 3 (21CAEDD003) has also encountered significant copper, the company says.

“Copper assays are awaited, [but] preliminary tests from visual estimates of chalcopyrite, and PXRF analyses of sludge samples to date, all indicate significant copper values should be returned over large sections of at least the first 500m or so of hole 21CAEDD003,” Cannindah says.

“Although assays are needed to confirm the significance of the discovery, CAE are highly encouraged that this strategy has been successful and a major extension to the known Cu-Au-Ag resources at Mt Cannindah mine will likely follow from the drilling of hole 21CAEDD003.”

“This goal has eluded the major mining houses that have previously explored Mt Cannindah.”

The $77m market cap stock is up 383% year-to-date.

DISCOVERY AFRICA (ASX:DAF)

(Up on no news)

This US-focused minnow is on our list of bargain barrel stocks looking for a new project.

Its recently granted ‘Chulitna’ project in Alaska is prospective for copper, gold, and silver. Initial field work kicked off in June.

“The company is hopeful this phase of work, subject to laboratory analysis results, will lead to further follow up works with the aim to identify priority anomalous targets for subsequent potential drilling,” DAF said last week.

“The directors continue to work on identifying and reviewing mineral project opportunities that may complement the company’s current activities, which includes a focus on North America due to its on-going prioritisation of the Chulitna Project.”

$8m market cap DAF is up 40% year-to-date.