Resources Top 5: ASX investors want small cap copper, rare earths stocks with good stories to tell
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Here are the biggest small cap resources winners in early trade, Monday June 20.
CPO has endured some frustrating share price action since it hit copper pay-dirt in March at the ‘Lana Corina’ project in Chile.
Twice the share price spiked on impressive drilling results, before falling fast and surrendering much of those gains. Markets, am I right?
Well, the $15m market cap minnow has done it again in early trade today, jumping 70% on multiple high-grade copper drilling hits at the ‘pipe like’ Lana discovery.
Highlight results from hole CMLCD005 include 80.87m @ 1.06% copper and 145ppm molybdenum from ~300m.
CPO also unearthed a new mineralised pipe ~50m way called ‘T3’.
“CMLCD005 is another wide >1% copper intercept confirming our belief that the Lana Corina project has the potential to host a significant >1% near surface copper orebody,” CPO managing director Max Tuesley said on Monday.
“This hole has also confirmed the discovery of a new, previously unknown breccia hosted copper zone that corresponds to the recently identified T3 ground magnetic target.
“This has the potential to transform the prospectivity of the north-east sector of the Lana-Corina-Laura mineralised zone with multiple, high-priority targets identified in the ground magnetic survey analogous to the T3 target over an approximately 1,000m strike.”
Assay results have now been reported for four diamond drillholes; “all of which have returned significant copper grades over wide intervals”.
The drilling program continues to focus on expanding the project’s mineralised footprint, CPO says.
Assays will be released as they come to hand.
CPO is up 106% year-to-date. It had $3.3m in the bank at the end of March.
CMO’s main game is the 450sqkm ‘Yamarna’ project, a stone’s throw from Gold Road’s (ASX:GOR) and Gold Fields’ +7Moz ‘Gruyere’ gold mine.
A recent 16 hole drilling program completed at Yamarna’s ‘Mt Venn’ and ‘Eastern Mafic’ prospects is now complete with copper sulphides intersected in all holes at Mt Venn.
Very promising. Results are due back from the lab late June, CMO says, with drilling set to recommence in July.
Meanwhile, an initial exploration target (an educated but unproven guess on how much metal is in the ground) will also be released later this month.
CMO, a spin-out of gold explorer Great Boulder Resources (ASX:GBR), listed earlier this year after raising ~$7m at 20c per share.
The $4m market cap stock is down 20% on its IPO price.
Explorer KFM has uncovered high-grade rare earths at its Gascoyne mineral field in WA, with rock chips assaying up to 21% TREO.
Gascoyne is a proverbial stone’s throw (~100km away) from Hastings Technology Metals’ (ASX:HAS) world-class 27.42Mt @ 0.97% TREO ‘Yangibana’ deposit.
This new discovery is 500m northwest of MW2, where late 2021 drilling intersected 12m at 1.12% TREO, including 4m at 1.84% TREO.
Outcropping high-grade rare-earth elements (REE) have now been confirmed over more than 800m of strike at Gascoyne’s ‘Mick Well’ prospect, KFM says.
A drill rig has been booked and the new discovery will be added to programs planned for later this year.
“The discovery of the additional rare earth element mineralisation in three parallel dykes just 500m from MW2 is a very exciting development for the company,” KFM boss James Farrell says.
“The high-grade assay results exceed our expectations and have led to the further identification of numerous new targets over a large area at Mick Well.
“As our work expands along our 54km target corridor, the new targets will be progressively assessed as we continue to increase our fieldwork over the coming months.”
The former copper-gold focused explorer is up 63% year-to-date. It had ~$2.9m in the bank at the end of March.
(Up on no news)
GRE is basking in the glow of a bunch of new drilling results – including a highlight 32m @ 2.43% copper — which could substantially increase the size of the ‘Whundo’ copper-zinc project in the Pilbara region of WA.
The results announced last week confirm that the high-grade copper and zinc at Whundo persists at depth and beyond the current resource envelope, GRE says.
Then there’s the bonus gold grades of up to 3.34g/t, which accompany the higher-grade copper zones and “further enhances the potential economics of the project”.
Whundo is at the core of a much broader copper and zinc system, GRE exec director Thomas Reddicliffe says.
“Drilling has demonstrated that the mineralisation at Whundo remains open at depth and with grades persisting,” he says.
“This and the identification of two additional mineralised horizons provides further impetus for the company to build upon the known resource.”
Assay results for three additional holes drilled at Whundo, and seven holes drilled at the nearby ‘Ayshia’ deposit are expected in the coming weeks.
Once all assays are received, GRE will look to update the existing resource at Whundo/Ayshia of 3.6 Mt @ 1.2% copper and 1.4% zinc.
The $10.6m market cap Artemis Resources (ASX:ARV) spinout is up 70% on its December IPO price of 20c per share.
It had $4m in the bank at the end of March.
(Up on no news)
The bauxite explorer’s share price smashed through eight-year highs in late May after it reached an out-of-court settlement over a protracted 2018 dispute over the ‘Kangankunde’ rare earths project in Malawi.
In 2018, the vendors of Kangankunde — one of the world’s largest rare earths projects outside of China – tried to change key terms of the deal after an agreement was signed.
Under the terms of the new settlement, proceedings will be discontinued in exchange for LIN being provided with a 60-day exclusivity period to negotiate the terms of a legally-binding deal to acquire the project.
The proposed purchase could cost LIN $US30m in cash.
In June, the company raised $2m at a 16% premium to the last closing price, which is very rare.
“Funds raised from the Placement and future option conversions will better position Lindian to pursue the potential acquisition of Rift Valley Resources Developments and its Kangankunde [rare earths] project in Malawi,” it said.
$71m market cap LIN is up 180% year-to-date.