Resources Top 5: Punters scramble for cheap iron ore stocks as prices fly

Iron ore prices leapt to nine-year highs of $US164.39 a tonne on Friday
Iron ore minnows Legacy, Brockman, and Reedy Lagoon surge on no news
Latitude Consolidated will buy advanced WA gold projects from producer Silver Lake Resources for $8m

Here are your top ASX small cap resources winners in morning trade Monday, December 21.

Twitter chatter regarding iron ore minnow Reedy Lagoon (ASX:RLC) really kicked up a notch over the last few days.

Nothing substantial, just phrases like “bullish breakout” “gunna go nuts” “cheapest iron ore stock on the ASX” … and so on.

Today, the stock surged on unusually high volumes to be up +30 per cent in early trade.

‘Not-iron ore stock’ Legacy Iron Ore (ASX:LCY) also flew again after last week’s surge.

Ostensibly gold-focused Legacy went on a tear last week, probably due to an iron ore project called Mt Bevan which has been languishing in the basement of its portfolio for years.

With iron ore prices hitting record highs, punters may be speculating that the explorer will dust off the WA project, which – besides a large, low grade magnetite resource – includes a decent chunk of Jupiter Mines’ (ASX:JMS) neighbouring high grade Mt Bevan deposit.

Low profile Pilbara iron ore play Brockman Mining (ASX:BCK) also jumped early on no news.

The company’s main game is the Marillana iron ore project, a joint venture with Mineral Resources (ASX:MIN).

Brockman is aiming for first production in the second half of calendar year 2022.

Explorer Latitude Consolidated (ASX:LCD) is buying a couple of advanced WA gold projects from producer Silver Lake Resources (ASX:SLR) for $8m.

This is a significant deal – if it goes through — because Latitude only has a market cap of ~$8m right now.

The Andy Well and Gnaweeda projects come with a combined 776,000oz gold.

The Andy Well mine produced more than 350,000oz at +8g/t (that’s high grade) over ~5 years, and was last mined when the gold price was ~A$1,600/oz.

The mine was mothballed in September 2017, partially due to the depressed gold price. The gold price has increased ~$1,000/oz since then.

Latitude will begin drilling to extend resources and kick off studies on a combined Andy Well & Gnaweeda mining operation once the deal is finalised.

Lindian Resources (ASX:LIN) wants to be a bauxite miner.

Bauxite is used to make alumina, which can then be turned into aluminium. Aluminium prices have been heating up over the past few months.

A recently completed acquisition will see the company kick off mining studies on the low capex Woula project in Guinea in 2021.

“The Woula Project is important strategically to Lindian’s bauxite assets in Guinea, and our broader vision and ambitions, which is to bring into production the larger, multi-generational bauxite assets, the very high grade Conglomerate Bauxite Gaoual Project and the world class Lelouma Project,” chairman Asimwe Kabunga said December 16.