Resources Top 5: High grade nickel hits and a ‘breakthrough’ gold discovery

New discovery shows Gateway Mining “working on a very significant gold system”
Poseidon Nickel hits another “strongly mineralised” interval of nickel sulphides at Golden Swan
Admiralty, Metalicity, and Globe Metals & Mining all up on no news

Here’s the top ASX small cap resources winners in morning trade Friday, November 20.

Gateway Mining (ASX:GML) has made a “breakthrough” high-grade discovery at its Gidgee project in WA, with one hole hitting a remarkable 10 metres at 9.2 grams per tonne gold.

The hole was part of a reverse circulation drilling campaign designed to test for gold between Gateway’s cornerstone +240,000oz Whistler and Montague-Boulder deposits at Gidgee.

The new mineralised structure labelled the ‘Lower Zone’ remains open in all directions.

“We consider this to be a major exploration breakthrough for the Gidgee project,” Gateway managing director Peter Langworthy says.

“The quality of these intersections in terms of grade and thickness provide a clear demonstration that we are working on a very significant gold system along the margin of the Montague granodiorite.

“This is an area with considerable scale potential over a strike length of up to 2km, which already includes the existing resources at Montague and Whistler.”

Poseidon Nickel (ASX:POS) wants to restart its established nickel operations in WA.

Late yesterday arvo, Poseidon came out of a week-long trading halt to announce another strongly mineralised 6.4m long interval of nickel sulphides at the recent ‘Golden Swan’ discovery.

Previous holes close by have returned spectacular intercepts like 9m at 10.46 per cent nickel and 7.6m at 8.8 per cent nickel.

The intersection occurred on the so-called untested ‘Southern Terrace’ target.

This is another outstanding drill result at Golden Swan and demonstrates the enormous potential of the Southern Terrace, Poseidon boss Peter Harold says.

“Tender submissions for the resource drilling contract are due on 20 November, with strong interest shown,” he says.

“We are also in a unique position to be able to drill out the Golden Swan mineralisation quickly and then determine the most appropriate way to exploit this mineralisation, should it prove to be economic.”

The stock is up +160 per cent over the past six months.

Up on no news:

Chile-based iron ore explorer Admiralty Resources (ASX:ADY) spiked hard in September on no news and has been bubbling away on reasonable volumes ever since.

Explorer Globe Metals and Mining (ASX:GBE) wants to develop the Kanyika niobium project in Malawi, Africa.

About 90 per cent of world niobium production is used in the making of high-strength, low alloy steel. Globe says the need for niobium is increasing at a faster rate than steel output.

The buzz around the historic, high-grade Kookynie gold project in WA lit a fire under Metalicity’s (ASX:MCT) share price earlier this year.

“Recent exploration has found a wide range of grades including some as high as 100 g/t gold at less than 80m, suggesting an open pit (where a lower grade is normally profitable) could be very attractive,” Simon Popple of UK-based Brookville Capital said yesterday.