• Besra announces US$300 million offtake funding facility with major shareholder
  • Galileo discovers new sulphide zone with 72m drill hit
  • Kingsland Minerals uncovers graphite exploration target at NT project

Here are the biggest small cap resources winners in early trade, Tuesday March 21.

 

BESRA GOLD (ASX:BEZ)

Microcap Besra Gold is now funded all the way to production thanks to a US$300 million non-binding drawdown facility with major shareholder, Quantum Metal Recovery.

This puts BEZ’s Bau Gold Project in east Malaysia on a straight path to development at a time when access to capital for emerging gold producers is difficult and highly dilutive.

Investors were quick to respond, with shares up as high as 120% at market open.

The deal represents one of the largest of its kind by an ASX listed junior and is expected to remove the need for dilutive equity financing.

“We plan to commence an update of the 2013 feasibility study and accelerate our plans to begin pilot production in calendar year 2023,” Besra’s chairwoman Jocelyn Bennerr said.

“On the exploration front, we will focus on upgrading the quality of our JORC resource by converting a portion of our Inferred ounces into the Measured and Indicated category.”

NOW READ: Buckle up! Central Banks are buying gold at the fastest pace on record

 

GALILEO MINING (ASX:GAL)

This $106.71m market cap stock is on a tear after recent drilling at the Callisto palladium-nickel discovery returned the widest, thickest intersection to date with 72m of mineralisation at 1.16 g/t 3E, 0.20% copper, and 0.24% nickel from 498m.

These assays highlight a new sulphide zone at the Norseman project in Western Australia, and support Galileo’s geological interpretation that the 5km of untested strike length to the north of Callisto is ripe for further discoveries.

“With 20 million in cash, we have funding to thoroughly explore the area without needing to raise money in a difficult environment,” GAL managing director Brad Underwood says.

“Follow-up drilling will begin in the next new months.”

 

KINGSLAND MINERALS (ASX:KNG)

Shares in Kingsland Minerals have jumped on news of an exploration target at the Leliyn Graphite Project in the Northern Territory, based on historical drill results and petrographical analysis.

The exploration target for the deposit comes in at 200Mt to 250Mt grading 8% to 11% TGC for contained graphite of between 16Mt and 27Mt.

“The potential scale of the Leliyn Graphite Project easily qualifies as a globally significant tier-one asset in a tier-one location,” KNG managing director Richard Maddocks said.

A drilling program, including both reverse circulation and diamond core drilling is currently being planned to begin during the June 2023 quarter.

 

LUNNON METALS (ASX:LM8)

(Up on no news)

Nickel explorer Lunnon Metals is up on no news, however, earlier this month the company kicked off a 2D seismic trial on key traverse abutting the Long Operation owned by Mincor (ASX:MCR) currently under takeover offer by Wyloo Metals.

“We are pleased to finally get on the ground in this highly prospective corridor,” LM8 managing director Ed Ainscough said.

“It’s early days obviously but the nickel mines surrounding the ‘Gap’ were some of the biggest nickel producers that Kambalda has seen.

“Lunnon Metals is embarking on a methodical, technically driven exploration program looking to maximise our chances of making a significant discovery in an area that has never been tested before.”

 

KILLI RESOURCES (ASX:KLI)

Kili has confirmed magmatic sulphide mineralisation in assays at the Fox prospect within the wider West Tanami Project in the Western Australia’s Kimberley region.

Magmatic copper mineralisation in the form of the mineral chalcopyrite was observed in drill core in October 2022 but assays have now confirmed a zone of massive sulphides returning 4.2m at 728ppm copper, 58ppm cobalt and 0.46g/t silver, including 0.6m at 2,730ppm copper, 114.5ppm cobalt and 1.23g/t silver.

“The discovery of a copper mineralised magmatic system in the Tanami is the first of its kind within the region,” KLI managing director Kathryn Cutler said.

“Mineral exploration at these truly emote greenfield projects leverages the company to unique opportunities, like this, which includes the discovery of a new commodity in a known province.”

At Stockhead we tell it like it is. While Besra Gold, Kingsland Minerals and Killi Resources are a Stockhead advertisers, they did not sponsor this article.