Resources Top 5: Explorers prove to be a sweet draw
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Here’s your top ASX small cap resources winners in morning trade Tuesday, October 20.
Resources & Energy Group (ASX:REZ) has discovered a new high-grade gold zone at the Gigante Grande prospect within its Menzies gold field project in Western Australia’s highly prospective Norseman-Wiluna Greenstone Belt.
While assays have been received for just five of the initial 32 holes drilled, the company has already struck the jackpot with one hole returning a peak result of 1m grading 76.4 grams per tonne (g/t) gold within a broader 20m zone at 5.06g/t gold from 116m.
The other hole that intersected significant gold mineralisation also did so with style, returning a 8m intersection grading 3.02g/t gold including a peak assay of 1m at 13g/t gold from 35m.
These results support the company’s belief that Gigante Grande hosts a very large mineralised system given there is potential for the zone to continue further north along the east side of the project area.
Further assay results are expected over the next couple of weeks from the Chronos and Goodenough prospects with REZ also planning to follow up on the Gigante Grande results.
The next of our explorers is Estrella Resources’ (ASX:ESR) whose downhole electromagnetic survey has defined a clear massive nickel sulphide signature associated with the nickel mineralisation intersected in hole CBDD030.
This body is unconstrained at depth and may be open in all directions.
Chief executive officer Chris Daws notes that the results put to rest any concerns about the scale of the discovery.
Estrella is currently waiting on the results of the next diamond hole, which will provide a first look at the deep geological/geophysical target zone over a 600m long strike zone.
The next stage of drilling will comprise between eight and 10 holes totalling about 5,000m.
Inca Minerals (ASX:ICG) has found visible copper mineralisation at new ground within its existing Uchpanga III mining concession at the Riqueza project.
Brief mapping and sampling in the new Uchpanga Enclave uncovered two new zones of highly-altered copper-silver-molybdenum mineralisation.
The mineralisation and alteration assemblage of the enclave are very similar to the immediate surrounding areas and, like the surrounding area, display epithermal/porphyry characteristics.
Both areas are considered to be drill-worthy and have been added to the existing list of 29 targets.
Yandal has previous production of about 350,000oz of gold and currently hosts a non-JORC resource of 8.56Mt at 1.5g/t for 401,000oz of contained gold.
The company will pay Aeris $3 million in GBZ shares and grant a 1.5 per cent net smelter royalty on the first 300,000oz of gold equivalent mined from the Yandan tenements to secure the project.
Aeris will also subscribe for a further $1 million in GBZ shares through a separate placement.
GBM is currently updating the Yandan resource to meet JORC 2012 standards.
Tungsten Mining (ASX:TGN) is up on no news though the company had previously flagged that the pre-feasibility study for its Mt Mulgine tungsten project will be finalised and announced in the current quarter.