Resources Top 5: Gold, copper explorers rise on progress reports, oil juniors swept up in crude price recovery
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Here’s your top ASX small cap resources winners in morning trade Wednesday, January 13.
One of the best-performing resources stocks in early trade was Frontier Resources (ASX:FNT) on announcing impressive sampling results for its Kimono prospect in Papua New Guinea.
Final sampling results along the prospect’s Kimono Central Vein showed values including 101 grams per tonne (g/t) gold and the continuity of gold mineralisation.
Mineralisation at Kimono Central occurs at 360m and 600m further to the south-southwest at Lower Holsiga Creek where trend sampling returned 1m at 4.03 g/t gold and 1m at 1.4g/t.
The newly-discovered Tassy Vein is interpreted to extend to more than 1km strike length with rock sampling results including 2.13 g/t gold.
The ASX gold explorer’s Kimono and Kimono South prospects abut the eastern boundary of the Tolukuma gold mining lease.
In addition to gold, other minerals were found at the Kimono Central prospect including electrum (a mixture of gold and silver), rare arsenopyrite, copper and lead and zinc base metal sulphides.
Frontier Resources’ Tolukuma gold project covers 441sqkm of an area located 70km north of PNG’s capital Port Moresby.
Copper exploration company AusQuest (ASX:AQD) rose significantly after it received permission to carry out drilling at two of its projects in southern Peru.
The permits pave the way for AusQuest to start a major drilling program at its Cerro de Fierro project in February, and shortly thereafter at its Parcoy project.
Both copper projects are covered by a strategic alliance agreement with mining company South 32 (ASX:S32).
AusQuest plans to carry out 5,700m of drilling at both of its Peru copper projects to test a copper anomalism at Cerro de Fierro and two priority areas at Parcoy.
“This next phase of drilling is designed to confirm where we believe the copper is closer to surface and hopefully of slightly higher grade,” managing director, Graeme Drew, said.
Grand Gulf Energy and Sagalio Energy
(Up on no news)
Grand Gulf Energy’s two wells in the US state of Louisiana produced a combined 4,524 barrels of oil in the September-ended quarter.
The ASX company’s Louisiana light crude production is priced at a slight premium to US West Texas Intermediate prices.
WTI prices have recovered strongly in recent weeks to trade at $US53.47 per barrel, while Louisiana light crude was trading Wednesday at $US54.45 per barrel.
WTI crude oil prices reached a multi-year low of only $US13.75 per barrel back in mid-April at their nadir at the start of the worldwide COVID-19 pandemic.
Sagalio Energy has production from two oil wells in the central Asian country of Kyrgyzstan which it sells to local oil refineries under sale agreements.
The company produced 714 tonnes of oil in the September-ended quarter that was sold to Kyrgyzneftegaz for which it earned $US94,000.
Global oil prices have been buoyed by news that Saudi Arabia has pledged to cut its output by 1 million barrels per day in February and March.
The production cut is in addition to output reductions agreed by OPEC of around 7 million barrels per day over the January to March 2021 period.
Recent ASX listee Benz Mining (ASX:BNZ) ticked higher after an electromagnetic survey led to the discovery of a new anomaly at its Eastmain project in Quebec.
The survey has identified a large conductor in the footwell of the Eastmain area’s existing resource mineralisation for 376,000 ounces at 7.9 g/t gold.
“Historically, mineralisation had been identified along the mine series trend over a strike length of 10km,” said chief executive, Xavier Braud.
“Since commencing exploration in July 2020, our exploration strategy has identified that there is now the potential for three mineralised trends,” he added.
Benz Mining listed on the ASX in late December, adding to its listing on the TSX exchange in Canada.