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Resources Top 4: REE-niobium play up 200pc, KZR gains ahead of Kali lithium listing
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- REE-niobium stock MTM is now up 200% over the past week, and 370% over the past month
- CPO is now up 90% on volume since stumbling over a possible gold-copper porphyry earlier this week
- BDG’s flagship gold project in Spain looks good at current gold prices
Here are the biggest small cap resources in winners in morning trade, Friday January 5.
MTM CRITICAL METALS (ASX:MTM)
Popular stocks are going on consecutive multi-day runs in 2024. Is that a good sign? MTM shareholders sure aren’t complaining.
The stock is now up 200% over the past week, and 370% over the past month.
Its main game is the Pomme rare earths-niobium project in Canada, where the results of four diamond drill holes were released earlier this week.
The assay results, received by management way back in mid-December – when the current share price surge began – took a while to hit the ASX due to “incomplete analysis and interpretation”.
But MTM’s ace in the hole is recently acquired ground in the West Arunta niobium-REE province of WA, where a red hot WA1 Resources (ASX:WA1) continues to stack on the gains.
Since making its niobium discovery in late 2022 WA1 has gained a ludicrous 9800%, and on Thursday hit an all-time high of $14.78/sh.
READ: Massive gains saw these 10 ASX miners become Monsters of Rock in 2023
The immediate focus at MTM’s new ground — nestled between WA1 and Encounter Resources (ASX:ENR) — is to complete heritage agreements and proceed with a first-pass exploration program.
Fellow WA1 nearologist Lycaon Resources (ASX:LYC) also made gains in early trade Friday.
CULPEO MINERALS (ASX:CPO)
CPO is now up 90% on volume since stumbling over a possible gold-copper porphyry at La Florida, part of the explorer’s recently acquired Fortuna project in Chile.
Porphyry deposits are low grade, high tonnage behemoths, responsible for ~60% of the world’s copper, most of its molybdenum, and significant amounts of gold and silver.
The Chuquicamata porphyry deposit in Chile, for example, is the largest and second deepest open pit copper mine in the world. It has been operating since 1910 and is expected to run until 2060.
A giant prize for any explorer.
CPO says it has defined a large 1.7km by 500m copper-gold footprint at La Florida, where surface sampling returned grades up to 3.96% copper and 2.61g/t gold.
Meanwhile, drilling is underway at near surface targets Vaca Muerta and El Quillay. Drill assay results from El Quillay are expected later this month, CPO says.
BLACK DRAGON (ASX:BDG)
BDG is focussed on building its high grade, 1.5Moz Salave gold project in northern Spain, where a laborious approvals process is currently underway.
A 2019 PEA – the equivalent of a scoping study – envisaged a ~80,000ozpa operation over an initial 14 years.
Based on a super conservative gold price of US$1250/oz, the mine would yield an after tax NPV (5%, bit low maybe) and IRR of US$230m and 25%, respectively.
At current prices around US$2000/oz those numbers jack up considerably:
The project would cost US$95m to build.
KALAMAZOO RESOURCES (ASX:KZR)
KZR’s lithium spinout Kali Metals (ASX:KM1) is due to hit the boards next week after a popular $15m IPO.
KZR shareholders get an initial 25% in-specie distribution (1-for-17.64) of shares in Kali, which will have a portfolio of lithium projects in WA and NSW.
KM1 also counts $1bn capped gold miner Karora Resources (TSX:KRR) and MinRes boss Chris Ellison as major shareholders.
