Resources Top 5: Got halloysite, iron-vanadium, or gold-silver? Do a jig

Thomson Resources’ NSW silver projects acquisition continues to excite investors
Technology Metals Australia gains after revealing off-take deal with Sinosteel Australia
Minotaur Exploration benefits from joint venture partner Andromeda Metals’ test work

ASX silver, iron-vanadium and rare earths stocks are leading the small cap resources winners in morning trade Friday, November 13.

ASX investors continued to warm to Thomson Resources’ (ASX:TMZ) plan to acquire two silver deposits in NSW from Silver Mines (ASX:SVL).

The stock put on up to 40 per cent in Friday’s morning session, after gaining 30 per cent on Thursday.

Thomson Resources chairman, David Williams, called the acquisition “game-changing” for the company.

Acquiring the Conrad and Webbs silver projects in NSW’s New England Fold Belt will diversify the company’s assets.

The company plans to bring its new silver projects into production quickly, said Williams.

Silver Mines is taking a ~19 per cent stake in Thomson Resources as part of the asset transaction.

Silver Mines managing director Anthony McClure is joining Thomson Resources’ board.

Thomson Resources is to issue 75 million of its shares and 50 million options at an exercise price of 12.4c each to Silver Mines.

The explorer has several gold projects in NSW including Harry Smith and Yalgogrin in the Lachlan Fold Belt and Hortons in the New England Fold Belt.

– Technology Metals Australia (ASX:TMT) was another early riser Friday, with its share price lifting 15 per cent.

A presentation to a mining conference in Noosa appeared to spark investor interest in the company.

The company has unveiled some promising test work results from its Yarrabubba iron-vanadium project near Meekatharra in WA.

Yarrabubba is near to the company’s Gabanintha vanadium project, and is expected to reduce development costs for the latter.

A simple open-pit mining operation is planned for Yarrabubba with mined ore fed to a crushing, milling and beneficiation plant.

Yarrabubba has a probable ore reserve of 9.4 million tonnes at 45.3 per cent iron and 0.97 per cent vanadium. Test work confirmed a weighted average grade of 64.3 per cent iron and 1.17 per cent vanadium.

The grade of iron ore is sufficient to meet the specification for premium-grade product that attracts higher pricing.

China’s giant steel company Sinosteel has signed a letter of intent for potential off take from the Yarrabubba project.

The annual quantity of the Sinosteel off take is up to 1.5 million tonnes for iron and vanadium.

Technology Metals Australia included a quote from Sinosteel Australia managing director in its presentation.

“Sinosteel Australia is very pleased to have established this relationship with Technology Metals Australia and aim to progress our off take and engineering, procurement and construction contract discussions on the premium quality Yarrabubba iron-vanadium project based on the principles of mutual benefit and respect,” said Sinosteel Australia managing director, David Sun.

– Minotaur Exploration’s (ASX:MEP) shares were in demand on upbeat news from its joint venture partner Andromeda Metals (ASX:ADN).

The companies are 50:50 partners in Natural Nanotech, formed to investigate nanotechnology applications for halloysite.

The compound is derived from the Great White Kaolin joint venture‘s high-grade kaolin-halloysite deposits in South Australia.

Testing of kaolin-halloysite has shown excellent results in a range of applications from carbon capture, hydrogen storage, energy storage and anti-bacterial uses.

“Ultra-high purity kaolin (non-halloysite type) from Great White and Mount Hope has shown exceptional results for coating polymer applications,” said Andromeda Metals in an ASX statement.

The company went on to add: “Results from both deposits are of the highest quality, with brightness properties superior to market leading products which are currently sold for $1,000 per tonne.”

A pilot plant to produce semi-commercial quantities of high value halloysite is near to completion for the joint project.

Natural Nanotech is working with scientists from the University of Newcastle’s Global Innovation Centre for Advance Nanomaterials on commercial, high-tech applications for hallyosite material from the Great White Kaolin joint venture.

– Shares in Anax Metals (ASX:ANX) accelerated Friday without any significant news from the company.

ASX investors may have liked a recent company presentation on its Whim Creek copper-zinc project in WA’s Pilbara gold hotspot.

The presentation outlined Anax Metals’ strategy of using latest mining technology at Whim Creek.

But it also included talk of Whim Creek’s gold prospectively, and the possibility of exploring for new gold discoveries at the project.

The company has raised $2m to fund an exploration earn-in for the project and to pay for a feasibility study.

The Pilbara region is host to a number of recent gold discoveries including De Grey Mining’s (ASX:DEG) Mallina project.

“The project lies adjacent to De Grey’s Mallina project and to the north of both the DGO Gold’s Mallina tenure and the Kairos Minerals’ Skywell project,” said the company presentation.

The Whim Creek project is 115km southwest of Port Hedland, and due to existing infrastructure low capital spending is required.

Anax Metals is targeting production of pre-concentrates from the copper-zinc project for sale or toll treatment.

“Numerous potential [offtake] partners” have been identified for Whim Creek’s copper-zinc production.

– Norwest Minerals (ASX:NWM) was another resources stock gainer in early Friday trade, thanks to its drilling announcement.

The company is testing for gold mineralisation extending below the shallow Bulgera open pits at its project in WA.

Near-surface gold resource of 2.9m at 1 gram per tonne (g/t) for 93,880 ounces of gold exists at Bulgera.

Minimal drilling has occurred to date at depths of more than 100m, and Norwest is targeting 250m deep holes at Bulgera.

High-impact drilling for Bulgera starts this weekend, and the program is for 5,000m in total.

“The implications associated with drilling success +150m down dip of the current near surface gold resources include a significant jump in resource size and ongoing growth prospects,” chief executive, Charles Schaus, said.

The Bulgera gold trend is an extension of the Plutonic and Vango mafic-ultramafic mine sequence that drilling has shown increases with depth.

At Stockhead we tell it like it is. While De Grey Mining, Norwest Minerals and Technology Metals Australia are Stockhead advertisers, they did not sponsor this article.