Resources Top 5: Golden Rim bolts out the gate, sheds weight in its Burkino Faso gold stake
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Here are the biggest resources small cap winners in early trade, Tuesday June 28.
West African gold explorer, GMR, has charged out of the gate this morning on news that it will be divesting its Burkina Faso gold assets for US$15m cash to private mining company BAOR SARL.
The transaction, which is NOT subject to shareholder approval, is being carried out in a series of four staged cash payments over 12 months, with the first payment of US$600,000 due within 15 business days.
Golden Rim says it will use the proceeds from the sale transaction of its Kouri and Babonga gold projects to fast track the 930,000oz gold Kada Project in Guinea.
“Securing this deal to divest our non-core Burkina Faso gold assets is a fantastic outcome for Golden Rim,” managing director Craig Mackay said.
“While we have been focussed on our transformational new Kada oxide gold project in Guinea, our projects in Burkina Faso have been sitting on the backburner and are attracting little market value.”
With a resource base of 2Moz gold and extensive upside, Mackay added the Burkina assets offer an exciting opportunity for an emerging Burkinabé mining company, such as BAOR SARL.
Shares in GMR were up ~30% at the time of writing.
(Up on no news)
This Mark Creasy controlled stock is up some 60% year-to-date.
The company’s strategy is to continue growing the inventory at the Robe Mesa iron ore project, right next door to Rio Tinto in the Pilbara.
Last week CZR passed another critical milestone in its plans to expand the mine and production rate at the project, with heritage clearance received for the northern extension of the deposit.
The upsized 37.5Mt at 56% Fe resource (62.6% Fe calcined, 55% Fe cut-off grade) allows CZR to increase production from 2Mtpa to 3Mtpa in the Definitive Feasibility Study (DFS), which is ramping up.
Drilling is now being fast-tracked at the northern extension to incorporate it in an expanded mineral resource estimate and ore reserve update.
Aussie rare earths play, ARR reckons the latest drill assay results at its Halleck Creek Project demonstrate the potential for the project to be one of the largest, rare earth deposits in North America.
Latest drilling results at the Wyoming-based project demonstrates Total Rare Earth Oxide (TREO) mineralisation has been observed up to 11,981ppm with highlights including:
High-value Magnet Rare Earth Oxides (MREO) comprise 26% of TREO as ‘extremely low’ thorium and uranium levels have also been identified.
Managing director and CEO Chris Gibbs says the project continues to deliver way beyond the company’s expectations.
“The sheer size, scale and consistent high grade of this deposit is extremely exciting,” he said.
“The low Thorium and Uranium elements will also set this deposit apart from others in the rare earths industry – we are now beginning to understand the massive nature of this deposit as these drill assay results confirm our extensive field sample work.”
ARR’s focus now is to upgrade the exploration target for Halleck, advance drilling efforts, and establish significant JORC resource as soon as possible.
Shares in A8G are flying some 30% higher this morning on the reveal that its partnership with CSIRO is continuing through the second phase of the Kick Start research program, where $50,000 in co-funding has been invested to research lithium potential in the Mt Peake and Barrow Creek pegmatite field of the Northern Territory.
This research scope has now been extended to include its 90% owned Barrow Creek lithium-tantalum-tin project with the hope to unlocking the puzzle of how to target world-class lithium deposits in this prospective pegmatite district.
By combining fieldwork with the guidance from CSIRO, A8G managing director Dr Zeng Qintao said the company has been able to pinpoint hot spots with over +1.0% Li2O in rock chip samples, and numerous areas of lithium and tantalum anomalism within its granted Mt Peake license.
Newly listed battery minerals explorer BVR is up this morning following the identification of multiple strong drilling targets from a comprehensive review of previous geophysics surveys.
The ~$8m market cap said the geophysics modelling identified ‘coincident gravity and electromagnetic anomalies’ interpreted to be lithological or structural targets within the Brumby zinc-copper-silver mineralised system in Western Australia.
These highly promising targets pave the way for the imminent start of Bellavista’s maiden drilling program at Brumby, which sits within the company’s Edmund Projects in the Upper Gascoyne Region.
Drilling is expected to begin in early-mid July after some minor delays due to unseasonal rainfall across the Pilbara and Upper Gascoyne in recent weeks.