Resources Top 5: Hard drilling explorer spikes +135pc on virgin gold discovery

Ozaurum Resources hits 1.31g/t over 56m — including 18m @ 2.07g/t — at ‘Mulgabbie North’ project
Exploration by Woomera Mining (lithium, gold and base metals), Zinc of Ireland (zinc, lead) about to kick up a gear
Paterson Resources, WIA Gold up on no news

Here are the biggest small cap resources winners in early trade, Thursday April 21.

OZAURUM RESOURCES (ASX:OZM)

More evidence that hard drilling explorers are more likely to get the wins.

“Gold discovery!” the microcap explorer announced after hitting 1.31g/t over 56m — including 18m @ 2.07g/t — at the ‘Mulgabbie North’ project, next door to Northern Star’s (ASX:NST) tier 1 Carosue Dam operations in WA.

The results, which include significant hits from three holes spaced 100m apart, come from a recently launched 7,500m reverse circulation (RC) drilling campaign.

It’s early days, but this virgin discovery at the so-called ‘Demag Zone’ remains ‘open’ all over the joint, OZM says.

“These excellent RC results, combined with aircore (AC) results defining new zones of mineralisation now extending for 2.8km in strike further highlight the potential of Mulgabbie North to be a significant gold project,” it says.

“High priority RC and diamond drilling of the Demag Zone will be undertaken as soon as drilling rigs become available.”

These gold zones at Mulgabbie North were hidden under a ‘blanket’ of transported cover, which hampered previous exploration. Their discovery is the result of some hard drilling by OZM.

After listing in 2021, OZM punched in a mammoth 82,000m of combined RC and AC for the year in the hunt for WA’s next big gold mine.

It is planning an initial 7,500m of RC, 2,000m of diamond and 5,000m of AC for the first six months of 2022.

The $13m market cap stock is up 80% year-to-date. It had ~$4m in the bank at the end of December.

WOOMERA MINING (ASX:WML)

(Up on no news)

Exploration across WML’s portfolio of WA lithium, gold and base metals projects will kick up a gear over the next six months.

2,000m of drilling is due to start any day now at the flagship ‘Mt Venn’ nickel-copper-PGE project, where drilling completed in 2021 returned some promising results.

Ground electromagnetics (EM) will be completed at the ‘Wyloo Dome’ JV in the Ashburton prior to RC drilling to test gold targets.

Also in the June quarter, drilling and early stage geochemical (soil) sampling will get underway at WML’s lithium projects ‘Ravensthorpe’ and ‘Lake Dundas’.

AC drilling at Lake Dundas is expected to begin in the September quarter once heritage surveys are completed, WML says.

“The next six months will be one of the most active periods since listing for Woomera, with concurrent drilling, geochemical sampling and ground geophysics programs taking place to maximise the chances of exploration success,” it said early April.

The $18m market cap stock is up 55% year-to-date. It had ~$2m in the bank at the end of December.

WML is currently in a trading pause “pending a further announcement”.

ZINC OF IRELAND (ASX:ZMI)

(Up on no news)

While its primary application is in galvanising steel with heavy uses in infrastructure, it has a critical part to play in the pathway towards decarbonisation.

It is used extensively in wind turbines (to protect against corrosion), solar PV (to increase solar cell efficiency) and emerging zinc-air battery technology.

We get it — zinc isn’t as sexy as lithium. But prices have been running hot for quite some time now.

Ireland-focussed ZML reckons it is “now in control of what is arguably one of the most prospective exploration land packages for high grade, large tonnage, zinc-lead deposits in the world”.

The ‘Rathdowney’ trend includes ‘Kildare’, which has a 11.3mt @ 9.0% Zn+Pb resource, and the exciting ‘Rapla’ prospect where maiden drilling is due to kick off this week.

Fourteen holes have been permitted with three holes to immediately test a high priority target similar to the neighbouring ‘Lisheen’ deposit (22.6mt @ 15.3% Zn+Pb) “in area, geology and feeder fault model”, ZMI said April 14.

“Any success in our drilling could have serious implications for ZMI,” non exec director Thomas Corr says.

“Our geological team, led by our exploration manager, Mr Greg Hope, has identified and refined the target and is excited by the similarities it has to Lisheen, which contained over US$12b of zinc and lead at today’s prices and is located just 10km away in the same geological setting.

“We eagerly await this drilling campaign and also our upcoming drilling at Kildare, which is targeting large step out targets away from our existing substantial JORC resource of 11.3mt @ 9.0% Zn+Pb.”

The $12m market cap stock is up 28% year-to-date. It had $1.6m in the bank at the end of December.

WIA GOLD (ASX:WIA)

(Up on no news)

The Africa-focused gold explorer formerly known as Tanga Resources is looking for a fresh start in 2022.

Earlier this month WIA said a maiden diamond drilling program was progressing well at the ‘Kokoseb’ gold anomaly, part of 2,700sqkm ‘Damaran’ project in Namibia.

Nine holes have been completed (1,247m) and a further two holes were planned before the drill rig demobilises.

Results will give WIA “a first look at the mineralising system at Kokoseb”, the company says. Assay results are expected in the current quarter.

The $40m market cap stock is up 40% year-to-date. It had $6m in the bank at the end of December.

PATERSON RESOURCES (ASX:PSL)

(Up on no news)

PSL focus is WA’s Paterson province, home to some major gold and copper discoveries over the past few years.

Last week the 2022 field season kicked off with extensive soil sampling over some high priority gold and base metal targets.

These will better define the targets for drill testing, PSL says.

Planning is also well advanced for an “aggressive” drilling program at the ‘Grace’ gold-copper project, 25km southeast of Newcrest’s world-class Telfer Mine, to commence in the current quarter.

“We have expanded the company’s exploration team with field staff dedicated to following up high priority gold and base metal targets at Bellary, Cheela Plains and Hamersley,” exec director Matt Bull says.

“Coupled with an aggressive RC drilling program due to commence at the Grace Project in the highly prospective Paterson Province as well an RC drilling program to extend mineralisation at the Lloyds Copper Project when weather conditions in the project area allow, the company looks forward to updating the market in the coming months.”

The $11m market cap stock is down 27.5% year-to-date. It had $2.1m in the bank at the end of December.