Resources Top 5: Gold records mount and signs point to more

A new gold discovery has been confirmed by OzAurum at the Cross Fault prospect
Induced polarisation surveys are being carried out at the Newman gold project of Peregrine Gold
Medallion Metals is still riding on the back of a high-grade gold and copper intersection

Your standout small cap resources stocks for Tuesday, April 1, 2025.

OzAurum Resources (ASX:OZM)

Gold’s rally is defying gravity with the precious metal soaring past the US$3100 mark as gold producers and explorers alike ride the current.

At the time of writing the yellow metal was US$3140.70/oz (A$5023.42) and since the start of the year is up around 19%.

Gold has closed out its best performing quarter in almost four decades and has outperformed most asset classes.

“This is truly historic price action,” said TheGoldForecast.com editor Gary Wagner. “Ten per cent of that 19% gain came in just the past month. If you look at the monthly chart, it’s basically a straight line up.”

A number of macro drivers are behind the surge – heightened geopolitical tension, sticky inflation and surging investor interest through exchange-traded funds (ETFs).

Total assets under management in global gold ETFs now stand at US$268 billion, with a one-day inflow of 23 tonnes recorded in March — the highest since 2022.

Fuelling the rally has been President Trump’s posturing on tariffs and with an announcement on reciprocal tariffs targeting countries including Canada, China and the EU, expected on April 2 this shows no signs of abating.

Automotive tariffs are reportedly set to follow on April 3, potentially increasing vehicle prices by thousands of dollars.

“Tariffs are essentially taxes on goods, and that’s inflationary,” Wagner said. “If tariffs broaden, costs go up, and that reinforces the need for inflation hedges like gold.”

One ASX-listed junior rising on the heat of gold is OzAurum Resources (ASX:OZM), which has been up to 44.62% higher at 9.4c after confirming a high-grade discovery at Cross Fault within the Mulgabbie North project in WA.

An RC drilling program which intersected up to 48m at 1.66g/t gold from surface including 9m at 5.79g/t from 12m has the company believing that the discovery is linked to a substantial gold system.

Other results from Cross Fault, which is 2km south of the 260,000oz Mulgabbie North resource, are 12m at 4.26g/t gold from 18m, including 2m at 22.58g/t; and 17m at 1.65g/t gold from 45m, including 39m at 1.09g/t from 31m.

Describing the results as exceptional, OZM CEO and MD Andrew Pumphrey said: “We’re particularly encouraged by the extension of the mineralisation into fresh rock and the widespread presence of sulphides, both of which point to the potential for a substantial gold system.

“With further drilling underway and diamond drilling about to commence, we’re confident that the Cross Fault discovery will significantly enhance the overall value of the Mulgabbie North gold project.”

Peregrine Gold (ASX:PGD)

For many years the Pilbara region of WA has attracted attention due to its vast iron ore resources but other minerals have enhanced the resources wealth in more recent times, including gold.

While headlines have been dominated by the impending acquisition by Northern Star Resources of successful Pilbara explorer De Grey Mining, juniors like Peregrine Gold (ASX:PGD) are emerging.

As it heads toward drilling at its Newman gold project, the company is starting induced polarisation surveys to firm up two high-profile prospects.

A gradient array IP investigation will start shortly with a dipole-dipole survey to follow aimed at refining targets next to the bounding contact of two highly prospective gold zones.

The Birdsnest prospect had seen only a little regional exploration before Peregrine acquired its host tenement in 2020, and its own work next to historic grabs returned ludicrously high grade samples of 122,497g/t gold and 23,234g/t silver.

The Epithermal prospect was likewise first found by another company, but PGD itself established the magmatic origins of the epithermal system and that more work was needed to investigate the source of the systems seen at surface.

“With our eyes focused on future drilling at the Epithermal and Birdsnest prospects, the completion of these surveys will provide valuable geological information to assist with generating and refining potential future drill targets,” Peregrine technical director George Merhi said.

“The company will continue to build momentum at the Newman Gold Project with further exploration activity to be announced shortly.”

Peregrine has other prospects to explore beyond Birdseye and Epithermal, and also has an interest across the fence in Capricorn Metals (ASX:CMM) territory after making an equity deal with the ASX 200 gold miner.

Shares have reached 20c, an increase of 21.22% on the previous close and in March climbed from 11c to 21c.

Medallion Metals (ASX:MM8)

Riding on the back of a 6.5m intersection at 20,2g/t gold and 5% copper reported on Monday, Medallion Metals has lifted 9.8% to an intraday high of 28c and has risen from 15c at the close on March 13.

These stellar grades from 139.2m at the Kundip Mining Centre, 80m outside the 1.46Moz gold equivalent resource at the flagship Ravensthorpe project, demonstrated MM8’s potential to find new, high-grade mineralisation, and sent shares more than 10% higher on Monday.

The deepest hole at Kundip runs to just 420m, with an average drill intersection depth of only 100m below surface.

“These results continue to increase confidence in the grade and continuity of the deposit which is the principal aim of the infill program,” Medallion managing director Paul Bennett said.

“Also encouraging is the potential upside from high-grade hits which continue to occur outside the currently modelled lodes.

“This concludes the results from the reverse circulation portion of the infill program which included a significant number of pre-collars in advance of diamond drilling which is now well underway.

“We look forward to reporting further strong visual and assay results as the diamond drilling program advances.”

A bankable feasibility study is due on the Ravensthorpe project, on WA’s South Coast, in the September quarter, with a final investment decision to come in the December quarter.

Canaccord Genuity has placed a spec buy label and 55c per share price target on Medallion Metals.

Brightstar Resources (ASX:BTR)

Gold producer Brightstar Resources has exceeded expectations with its first gold pour from the Laverton Mill of Genesis Minerals resulting in 4297oz from 54,449 dry metric tonnes.

The reconciled head grade of 2.51g/t gold and the recovery rate of 94.25% exceeded estimates and reinforced the company’s production profile ramp-up strategy for 2025 and 2026.

While the BTR share price was steady at around 2c, more than 121 million shares changed hands, making the company one of the most active on the ASX.

The ore was from BTR’s high-grade Second Fortune underground mine and lower-grade Lord Byron open pit stockpiles.

Last month the company welcomed the first gold pour as part of an ore purchase agreement with Genesis and metallurgical reconciliation from the first parcel has provided further encouragement.

“The reconciled results from Parcel 1 highlight the value of our Laverton production hub and the operational ability of our mining teams to deliver gold production and cash flows to Brightstar,” managing director Alex Rovira said.

“The reconciled blended head grade and high recovery rate exceeded our expectations, positioning Brightstar to capitalise on record AUD gold prices as we scale-up our operations.

“With haulage ongoing for our next processing parcel in May and development of the Fish Underground Mine on budget and schedule for delivering first ore in June, we’re building momentum towards sustained production growth and increased cash flows to fund the broader growth objectives across the company’s portfolio.”

Cavalier Resources (ASX:CVR)

After returning a revised update to a pre-feasibility study for the Crawford gold project east of Leonora in WA, Cavalier Resources was as much as 27.27% higher to 21c.

The new PFS has improved the financial outlook for the first stage of the project with an NPV of $51.7m and with pre-capex undiscounted cash flow of $66.7.

The internal rate of return is 580% from 23,467 recovered ounces with lowest quartile C1 AISC of $1574/oz and C3 AISC of $1793/oz. A gold price of $4600/oz was applied to the financials.

There is also considerable upside due to the first stage being constrained to the central oxide portion of the resource, which remains open along strike and at depth.

Cavalier recently signed a non-binding term sheet for US$11m with precious metals streaming fund Raptor Capital International to advance the stage one pit into production while due diligence processes are ongoing as is consultation with traditional owners regarding Native Title.

“This revised PFS update reflects a significantly improved financial outlook for Stage 1 and further underscores the outstanding overall potential of the greater Crawford Gold Project, executive technical director & CEO Daniel Tuffin said.

“Concurrently, the company has advanced the funding due diligence process, with Raptor representatives due to visit the site in early April, while also progressing with the procurement of the necessary equipment for the Stage 1 oxide heap leach.

“The combination of robust project economics, a record gold price and continued project advancement, positions Stage 1 at the Crawford Gold Project for even greater returns and increased development potential to build on for extension of further mining operations onsite.”

This article does not constitute financial product advice. You should consider obtaining independent financial advice before making any financial decisions. While OzAurum, Peregrine Gold, Brightstar Resources and Medallion Metals are Stockhead advertisers, they did not sponsor this article.