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Resources Top 5: High profile battery metal stocks add another string to their bow
Mining
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- Niobium play Globe Metals & Mining scores mining licence approval
- Battery metal plays Sayona and Australian Mines dial in on large gold, copper-gold targets at respective projects
- Variscan is now up +200% since announcing a fresh zinc-lead discovery at the old ‘San Jose’ mine in late May
Here are the biggest small cap resources winners in early trade, Monday June 7.
GLOBE METALS & MINING (ASX:GBE)
The Malawi government has recommended $45m market cap Globe receive a mining licence, in a “a significant step forward for the company’s goal of becoming a niobium producer”.
Alloys containing niobium are used in jet engines and rockets, beams and girders for buildings and oil rigs, and oil and gas pipelines.
“Globe has been working diligently and cooperatively with all stakeholders for many years to achieve a grant of a mining licence for the Kanyika niobium project,” Globe managing director Alistair Stephens says.
“Now that a major milestone has been reached, the company can look to actively pursue promotional and marketing strategies to develop a broader market appreciation of the project.”
The company surged +150% on the news to its highest point in about nine years.
VARISCAN MINES (ASX:VAR)
(Up on no news)
Variscan is now up +200% since announcing a fresh zinc-lead discovery at the old ‘San Jose’ mine in late May.
The discovery of two trends – labelled La Caseta and 168-177 – confirms the presence of multiple mineralised ‘lenses’ below the historic mine.
Intersections include 16.9m at 12.5% zinc and 2.5% lead and 15.6m at 3.2% zinc and 0.3% lead — with mineralisation remaining ‘open’.
“It suggests significant potential for discovering additional lenses throughout the San Jose Mine as the remainder of the mine has had barely any drilling to test for lower lying lenses,” managing director Stewart Dickson says.
“In aggregate, that could provide considerable scale and tonnage potential.”
AUSTRALIAN MINES (ASX:AUZ)
Nickel-cobalt project developer AUZ has identified a potential copper-gold porphyry at the ‘Flemington’ project, located in the Lachlan Fold of NSW.
The main exploration focus at Flemington has been its growing cobalt-scandium-nickel resource, but this discovery could add another string to the company’s bow.
Australian Mines says this anomaly sits in the same rocks (age and type) as the tier one ‘Northparkes’ and ‘Cadia East’ mines nearby.
Afield reconnaissance program of the IP anomaly is underway, “with the intention of undertaking a reverse circulation (RC) drill program over this emerging copper-gold target zone from next month”.
SAYONA MINING (ASX:SYA)
Advanced lithium project developer Sayona — fresh from its successful joint bid for a mothballed lithium operation in North America – has now kicked off exploration for ‘Hemi style’ gold targets in WA.
The company will spend $2m in 2021 to drill 16 magnetic anomalies at ‘Mt Dove’ and ‘Deep Well’ projects in the Pilbara.
“Sayona is keen to advance its Australian gold business and this investment in exploration is a clear demonstration of our confidence in our projects’ potential,” Sayona managing director Brett Lynch says.
“Our Pilbara gold projects all lie within a 10-50km radius and encircle the expanding Hemi, which is shaping up to be a large footprint, world‐scale deposit.
“With our recent efforts to identify drill targets, we look forward to advancing this exploration activity and unlocking further value for shareholders, in addition to our flagship lithium projects in Canada.”
The stock is now up ~650% year to date.
EAGLE MOUNTAIN MINING (ASX:EM2)
(Up on no news)
The red hot copper play is up ~580% over the past year on some outstanding drilling success around the high grade ‘Oracle Ridge’ mine in Arizona.
The Oracle Ridge copper project has an existing mineral resource of 12.3 million tonnes at 1.51% copper, 16.3g/t silver and 0.19g/t gold for 184,000 tonnes of contained copper, 6.4 million ounces of silver and 73,000 ounces of gold.
Acquired by Eagle Mountain in 2019, the project was last mined in the 1990s and features 18km of pre-existing underground workings.
