Resources Top 5: Lefroy confirms Burns is smokin' hot, rare earths play sees light at the end of the tunnel

Lefroy hits more copper and gold at ‘Burns’ porphyry discovery
Rare earths project developer Peak awaits crucial mining licence from Tanzanian government
Kairos uncovers “multiple intrusive-related gold targets” at early stage Skywell project

Here are the biggest small cap resources winners in early trade, Thursday May 13.

LEFROY EXPLORATION (ASX:LEX)

The explorer has hit more copper and gold at the company-changing ‘Burns’ porphyry discovery near Kalgoorlie.

The first hole successfully ‘twinned’ and extended the discovery hole (38m @ 7.63g/t Au & 0.56% Cu from 134m to 172m).

The second – designed to evaluate the host porphyry rocks 55m vertically below the mineralised zones in hole one — hit two mineralised zones totalling 57m in length.

The third hole in the current 14-hole plan is now underway. Assays from holes one and two are expected in late June.

Lefroy has now gained 380% since the discovery was first made in February.

PEAK RESOURCES (ASX:PEK)

Peak’s main game is the Ngualla rare earths project in Tanzania.

The explorer is currently waiting for a Special Mining Licence (SML) — the final major regulatory requirement before it can negotiate an Economic Framework Agreement for the project.

“Upon receipt of the SML, the project will be the among the most advanced rare earth development projects that has a JORC Compliant Ore Reserve, completed definitive feasibility study, and fully piloted process from ore to separated oxides that is permitted and ready to construct,” the company says.

Yesterday, the Tanzanian Minister for Minerals said it would “issue a second SML with investment of over US$100 million to PR NG Minerals”, the wholly owned subsidiary of Peak.

Which is great news — but Peak says it still waiting for official confirmation.

ALLIGATOR ENERGY (ASX:AGE)

(Up on no news)

This uranium explorer is up 420% over the past six months.

Earlier this week, giant US commodities trader Traxys inked a deal to potentially provide long term offtake and project development financing to Alligator.

Traxys – which enjoys annual revenues of +$6 billion – will also assist in uranium project acquisition opportunities.

Alligator began early exploration at its newly acquired Samphire uranium project in South Australia in February this year. A drilling program is due to kick off in July, primarily focused on upgrading the existing resource.

KAIROS MINERALS (ASX:KAI)

The Pilbara explorer has uncovered “multiple intrusive-related gold targets” at the early stage Skywell project.

Six of the new targets represent priority targets for air-core drilling, which is scheduled to commence by the end of this quarter.

The explorer’s 2021 exploration field season is now well and truly stepping up a gear, with activity levels increasing across all key projects, Kairos exec chairman Terry Topping says.

“The current drill program at the Roe Hills Project is going very well, and we expect to provide an update on that in the near future,” he says.

“Earthmoving will begin at the Mt York and Kangan Projects next week to prepare drill sites, and we expect to see drilling underway at Mt York very soon with our planned 20,000m program.

“And heritage surveys have been requested ahead of planned initial air-core drilling to test the intrusion related targets at Kangan.

“Multiple targets, multiple news-flow streams and, we hope, multiple opportunities to make a significant discovery!”

METAL BANK (ASX:MBK)

(Up on no news)

Metal Bank is gold explorer with projects in North Queensland, a region that hosts several mammoth mines including Cracow (3moz), Mt Rawdon (2moz), Mt Morgan (8moz) and Gympie (5moz).

Drilling to test the large bulk tonnage ‘Great Eastern’ copper-gold porphyry target at Eidsvold was completed early May, with assays pending.

In the latest quarterly, Metal Bank says it continues to pursue “new growth opportunities through acquisition and corporate transactions”.

The $13m market cap stock is down 16% over the past six months.