Resources Top 5: Kalamazoo leads as Mallina West gold assays loom

Here are the biggest small cap resources winners in morning trade, Tuesday, January 7. Prices accurate at time of writing.

Kalamazoo Resources (ASX:KZR)

While none of the top resource gainers this morning had any news out, Kalamazoo took the lead with a 13.7% gain to 8.3c possibly on anticipation that assays from drilling at its Mallina West gold project are due soon.

The company had completed the reverse circulation and diamond drilling program to test for Hemi-style intrusion-hosted gold mineralisation – including a follow-up of a previous high-grade intersection of 1m grading 10.35g/t from 99m – in mid-December.

Mallina West is located along the same major shear zone structure as De Grey Mining’s (ASX:DEG) world-class Hemi gold discovery.

Drilling had benefitted from a WA government co-funded exploration drilling grant of $126,625 under the Exploration Incentive Scheme.

Boab Metals (ASX:BML)

(Up on no news)

Boab Metals is focused on progressing its Sorby Hills lead-silver project about 50km northeast of Kununurra, WA, towards production.

Sorby Hills has a resource of 47.3Mt grading 4.3% lead equivalent (or 123g/t silver equivalent) including 53Moz of contained silver.

It has an initial production target of 18.3Mt underpinned by 83% reserves and is envisioned as a conventional open pit that will produce a high-grade lead-silver concentrate through a regular flotation process plant.

In late December 2024, the WA government provided consent to key amendments to the existing Environmental Protection Act approval.

These amendments provide the company with scope to implement the Sorby Hills project in line with the FEED study including an increase to the open-pit depth and mining production rate.

It also provides Boab with the opportunity to further reduce capital expenditure through an optimisation of the proposed water management strategy and rationalisation of associated infrastructure.

European Lithium (ASX:EUR)

(Up on no news)

European Lithium’s largest asset is its 74.3% majority stake in Critical Metals Corp, the Nasdaq-listed explorer which holds the Wolfsberg lithium project in Austria.

In early December, the company chalked up a major win after the Carinthian state government said it would not require an environmental impact assessment for the project, which will be developed underground and require less than 10 hectares for its above-ground activities.

This paves the way for fast-tracked approval of the project, making it the first new mining initiative in the EU to benefit from such a process.

EUR has also raised $2m through a placement of shares priced at 5.12c to institutional and sophisticated investors to fund sampling and drilling work at its recently acquired Leinster lithium project in Ireland.

Trigg Minerals (ASX:TMG)

(Up on no news)

Antimony hunter Trigg climbed 9.52% to 4.6c this morning on no news.

On December 19, 2024, the company announced a 92% increase in resources at the Wild Cattle Creek deposit within its Achilles project to 1.52Mt at 1.97%, or 29,902t of the critical metal.

Wild Cattle Creek is the second largest antimony deposit in NSW with mineralisation comparable to Larvotto Resources’ (ASX:LRV) nearby 7.23 Mt at 4.5g/t gold and 1.2% antimony Hillgrove antimony-gold deposit.

There is plenty of potential for growth with high-grade shoots that remain open either downdip or along strike, and it’s only been drilled to 100m depth, remaining open down plunge and along strike.

Black Rock Mining (ASX:BKT)

(Up on no news)

Black Rock Mining, which is focused on developing its Mahenge graphite project in Tanzania, rose 8.82% to 3.7c.

Mahenge has the second largest graphite reserve globally and is expected to generate post-tax NPV of US$1.4bn and IRR of 36% over its initial 26-year mine life.

In 2024, the company completed three-year full form offtake agreements for the supply of large flake graphite concentrate to Muhui International Trade (Dalian) Co. Ltd (Muhui) and Qingdao Yujinxi New Material Co. Ltd (Qinqdao).

Each contract covers the supply of 15,000tpa of large flake concentrate for a total of 30,000tpa.

BKT also secured US$179m in loan and bank guarantee facilities from The Development Bank of Southern Africa, The Industrial Development Corporation of South Africa, and Tanzania’s CRDB Bank.

This comprises a US$113m construction term loan, US$20m revolving credit facility, US$20m cost overrun facility, and a US$26m bank guarantee facility.

At Stockhead, we tell it like it is. While European Lithium and Trigg Minerals are Stockhead advertisers, they did not sponsor this article.