Resources Top 5: Gold discoveries, Russian coal, and more stocks jump on the lithium wagon
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Here are the biggest small cap resources winners in early trade, Tuesday October 5.
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The explorer has more than bounced back from Monday’s unexplained 23% loss.
Auric’s main game is WA’s Widgiemooltha district where the explorer has an existing gold inventory of more than 220,000 ounces.
“The company’s strategy here is to expand its resource base through innovative exploration, as in many instances the gold potential of the region has taken a back seat, with the overwhelming exploration focus historically being on nickel, with Western Mining Corporation the dominant regional player,” Minelife’s Gavin Wendt said late May.
Results for drilling at the ‘Munda’ project and the ‘Guest’ prospect will be received in mid-October, the company says.
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The $60m project developer is up ~75% since bolstering the board with non-exec directors Alexander Downer AC and Paul Cahill late last month.
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.
IBG’s SEDEX style ‘Citronen’ project in Greenland is at the pointy end of the development cycle.
Sedimentary exhalative deposits (SEDEX) are super giant Tier 1 deposits which account for 25% of global zinc and lead production, and six of the 10 largest active zinc mines globally.
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The $305m market cap coal producer is up 53% over the past week alone as global prices soar.
TIG may be even more exposed to the booming Chinese coal import market than any other company on the ASX, given it sells its product out of the Bering basin in far east Russia.
Tigers Realm enjoyed the benefits of seeing prices for non-Australian hard coking coal soar in the back end of the 2021 financial year, doubling revenue to $14.765 million and reducing its losses by 98% from $17 million in 2020 to just $292,000 in 2021.
This quarter is looking even better. Chinese prices for premium hard coking coal out of jurisdictions like Russia recently hit new historical highs.
It means TIG, despite being a relatively modest producer with 2021 coal sales guidance of 750,000-800,000t, is beginning to capture the attention of investors.
GSN pulled up 17m at 7g/t gold – including a 1m chunk grading 109g/t – 200m away from the known edges of the ‘Southern Star’ deposit.
A very significant hit from this WA explorer.
“Discovering exceptional high-grade gold in an area that has seen no drilling previously, 200m south of Southern Star, is an exciting development for Great Southern,” chief exec Sean Gregory says.
“It demonstrates that the 12km strike of this well understood mineralised trend is likely to hold more ounces on GSN tenure; we now just have to find out how many more.
“In terms of mineralisation style, Southern Star is the same as Ben Hur and Rosemount which have progressively grown into company making deposits, and we see no reason for this not to also occur at Southern Star.”
Regis Resources’ (ASX:RRL) Ben Hur (400,000oz) deposit and Rosemont (>1Moz) mine, are 4km and 24km along strike, respectively.
More results are anticipated shortly, says GSN. Follow-up drilling is already being planned.
Another minnow jumps on the lithium bandwagon.
The graphite play – recently mentioned by Stockhead as a sub $15m explorer looking for new projects — has applied for exploration ground 25km from the world-class Greenbushes lithium mine in WA.
The so-called ‘Wilgee Springs’ project is a low-cost entry into the same belt of rocks that hosts Greenbushes, managing director Stephen Stone says.
“Thick laterite cover has previously hampered exploration but that is exactly what we now see as the opportunity given today’s advanced geochemical and geophysical exploration technologies that in effect allow us to ‘peer’ beneath this cover,” he says.
“This application, along with Castle’s existing ‘Kambale’ graphite project, advances the company’s participation in the fast-evolving battery metals exploration sector in which it will continue to search for complementary opportunities.”