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Resources Top 5: Is this the second IOCG discovery in two weeks?
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- Strong drilling results indicate Carnaby Resources is in an Iron Oxide Copper Gold (IOCG) system
- Si6 uncovers prominent 2.5km long anomaly at the ‘Dibete’ prospect in Botswana
- OM Holdings surges after debuting on the Malaysian bourse (Bursa) yesterday
Here are the biggest small cap resources winners in early trade, Thursday June 24.
CARNABY RESOURCES (ASX:CNB)
Spectacular drilling results like 30m grading 1.8% copper at ‘Nil Desperandum’ – part of the Greater Duchess project in Queensland – indicate Carnaby is in an Iron Oxide Copper Gold (IOCG) system.
Iron oxide copper gold ore deposits (IOCG) — like BHP’s Olympic Dam mine or more recent Oak Dam discovery — can be tremendously large, and simple-to-process concentrations of copper, gold and other economic minerals.
It comes two weeks after junior joint venture partners Coda Minerals (ASX:COD) and Torrens Mining (ASX:TRN) hit 200m of “intense IOCG alteration”, including ~50m of copper sulphides at the ‘Elizabeth Creek’ project in the Stuart Shelf region of South Australia.
Nil Desperandum (‘do not despair’) appears to be getting bigger and higher grade at depth, Carnaby managing director Rob Watkins says.
“We eagerly await more drill results and look forward to additional RC and diamond drilling starting within the next two weeks.”
The $41 million market cap stock is down 17% year-to-date.
SI6 METALS (ASX:SI6)
Si6 is hunting for base and precious metals within the ‘Limpopo Mobile Belt’ in Botswana, a district known for hosting major nickel and copper operations.
It has uncovered a prominent 2.5km long anomaly at the ‘Dibete’ prospect, along strike from known mineralisation.
Surveys at the ‘Airstrip’ and ‘Maibele’ prospects are also nearing completion with results to be reported shortly.
Planning for reverse circulation and diamond drilling will then take place, the company says.
WALKABOUT RESOURCES (ASX:WKT)
Walkabout is a step closer to production after ekeing out sufficient subscriptions to provide the US$4 million, Stage 2 companion equity to the Lindi Jumbo graphite project in Tanzania.
The company, which was looking to raise up to $7.6m in Stage 2, says this will fund at least another two months of the revised construction schedule.
“We are delighted that the uptake of shareholders rights to date has allowed us to reach the US$4 million milestone a week before the closing date,” Walkabout chief exec Andrew Cunningham says.
“Due to requests by eligible shareholders and in the light of the imminent closure of the Stage 3 equity raising we have decided to extend the closing date of the rights issue by a further six business days until 5 July 2021.”
The $87m market cap stock is up 53% year-to-date.
OM HOLDINGS (ASX:OMH)
The vertically integrated manganese ore and ferroalloy producer debuted on the Malaysian bourse (Bursa) yesterday, where it appears to have closed at the equivalent of ~$1.16AUD per share.
This is a huge +40% jump up from OM’s last ASX close of 82c per share.
The $720m market cap stock is up 80% year-to-date.
CENTREX METALS (ASX:CXM)
(Up on no news)
Current rock phosphate prices are up +40% over the past 12 months, and this small cap fertiliser farmer is loving it.
Centrex is embarking on a strategic review of the flagship ‘Ardmore’ project — which produces one of the world’s highest grade rock phosphate concentrates — “to ensure the project reaches its full potential”.
“The Ardmore Project needs to be viable under all likely market conditions,” chief exec Rob Mencel says.
“The increase in rock phosphate prices is a positive for the project, however the ability to produce a high grade concentrate significantly de-risks the project. Having the option to create +37% P2O5 product strengthens Ardmore’s ability to compete long term.”
The $19m market cap stock is up 87% year-to-date.
