Resources Top 5: Gold explorers zoom through the sky on fresh gold strikes

RIE hits high-grade gold and silver at flagship Kingman Gold Project
CHN spinoff FAL soars on aircore drilling results at Pyramid Hill Gold Project
OCN, REZ, LRL up on no news

Here are the biggest small cap resources winners in early trade, Friday July 15.

RIEDEL RESOURCES (ASX:RIE)

Emerging $5m market cap explorer RIE is sitting on an 80% high right now after announcing some high-grade gold and silver assays from the Tintic zone within the Kingman Gold project in Arizona, USA.

Highlights from these latest drill results include 1.5m at 27.5g/t gold and 37g/t silver from 13.7m, including 0.8m at 53.3g/t gold and 63g/t silver from 13.7m as well as 3m at 5.05g/t gold and 58g/t silver from 27.4m.

RIE chairman Michael Bohm says this final batch of assay results supports the high-grade mineralisation which has been achieved in every. single. drill program. at Tintic.

“The blanket of high-grade gold and silver sits just below the surface at Tintic, which means that drilling toward a future resource estimation and developing a conceptual mine plan, could be simple, cost effective and quick to achieve,” he explains.

The plan for the company now is to interpret the results and consider the next steps, which may include a small drill program targeting the shallow high-grade mineralisation at Tintic next quarter.

FALCON METALS (ASX:FAL)

This Chalice Mining (ASX:CHN) spinoff is absolutely soaring after hitting high-grade gold in aircore drilling at the Ironbark East and Karri prospect within the Pyramid Hill Gold Project, north of Bendigo, Victoria.

Hole PHAC1030 returned 40m at 2.81g/t gold from 50m, including 26m at 4.20g/t gold from 51m, which also includes 2m at 15.42g/t gold from 51m.

Shares in the ~$40.5m market cap company went for a run and gained some 30%, with managing director Tim Markwell saying the results are indicative of the company’s quality of ground position and targets.

“Being in the fortunate position of having a strong cash balance, we look forward to completing an assessment of these encouraging results and planning for a major work program in the coming months,” he says.

FAL, which listed on the ASX back in December 2021 after raising $30m in an oversubscribed IPO, is chaired by Mark Bennett, known for his discovery of the Nova nickel deposit.

OCEANA LITHIUM (ASX:OCN)

(Up on no news)

Recent ASX lister OCN hit the ground running after closing its heavily oversubscribed $6m IPO, with a significant foundation investment from Tesla chemical supplier Ya Hua International.

The company has around 17km of intermittent mineralised pegmatite outcrop – an explorer’s dream – already mapped in the northern Brazilian state of Ceara within its flagship Solonopole project.

OCN’s executive director, Sebastian Kneer, was once the geology manager at Galaxy Resources (ASX:GXY) – the company that merged with Orocobre and since renamed Allkem (ASX:AKE) to create the world’s fifth-largest lithium chemicals company worth $4bn at the time (now $6.8 billion).

RESOURCES & ENERGY GROUP (ASX:REZ)

(Up on no news)

REZ has projects both in Western Australia and Queensland. In WA, the company’s flagship project is the East Menzies Project (EMP), north of Kalgoorlie prospective for precious metals, nickel and other tech metals.

EMP comprises five operational areas which include the Gigante Grande gold prospect, and Springfield in the southwest which has intersected some magmatic nickel sulphides, as well as Granny Venny, Goodenough, and Maranoa in the central west.

Over in Queensland, REZ has a mineral development licence over the Mount Mackenzie mineral resource and a further 15km2 as an exploration permit.

In early June, the company commenced mining operations at the Granny Venn open cut gold mine where the production target of 120,000t at 2.3g/t gold for 880,000oz was exceeded.

A total of 126kt of ore with an estimated head grade of 2.37g/t gold for 9,532oz had been processed.

Managing director Daniel Moore said at the time it was a “great result”.

LABYRINTH RESOURCES (ASX:LRL)

Back in September 2021, Labyrinth – then known as Orminex – announced the “transformational” acquisition of a couple of advanced gold projects in Canada, plus a $9.5m cap raise to fund the acquisition and aggressive exploration.

The latest results out of its flagship ‘Labyrinth Gold Project’ include hits up to 43g/t which pave the way for an upcoming maiden JORC resource.

At the time, LRL chief executive Matt Nixon said most importantly, the company had intersected high-grade gold in five individual lodes as well as outside the currently modelled zones.

“Work on the resource is well advanced and on track for release in the coming quarter,” he added.

“As this is being completed, we will ramp up our first surface drilling program with the aim of expanding the known mineralisation below the modelled areas, setting us up for further growth beyond the maiden resource.”