Resources Top 5: Silver hits dazzle as uranium, lithium stocks ride bullish wave
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Here are the biggest small cap resources winners in morning trade, Monday May 10.
Giant US commodities trader Traxys has inked a deal to potentially provide long term offtake and project development financing to ~$60m market cap uranium explorer 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.
“This exciting strategic partnership with Traxys will provide expanded opportunities for Alligator in the project development, uranium offtake and targeted acquisition arenas,” Alligator chief exec Greg Hall says.
“With planning for the upcoming Samphire Project drilling program well underway, and agreements in place with ANSTO for updated metallurgical testing, the Traxys agreement adds exceptional experience towards our goal of becoming a future uranium producer.”
The Alligator share price is up 300% over the past six months.
Newly listed gold-silver explorer Prospech is hitting paydirt in Slovakia.
Partial results from the first two holes at the ‘Zemplin’ prospect returned 4.5m at 163.6 g/t silver and 0.2% lead from 85.3m, and 6m @ 128.3g/t silver 0.2% lead from 94.0m.
That includes a higher grade 342g/t chunk of silver, which looks like this:
Importantly, Prospech reckon current drilling is “high up” in the mineralised system at Zemplin. The explorer will now plan additional drilling after possible ground magnetics to follow extensions down dip and along strike.
The stock – run by proven company makers – is down ~25% since IPOing in December last year.
(Up on no news)
The worm continues to turn for uranium stocks on the ASX, with advanced explorer Vimy now up ~300% over the past six months alone.
Vimy wants its shovel-ready Mulga Rock project up and running to take advantage of a predicted uranium price surge.
It recently raised $18.5m to advance early works at Mulga Rock in WA and to continue exploration at the Alligator River project in the Northern Territory.
(Up on no news)
Lithium prices have rallied hard from recent lows, and Global Lithium – which listed on the ASX last week — is one explorer reaping the benefits.
The stock is currently up 85% on its IPO price of 20c per share.
GL1’s main game is the ~240sqkm Marble Bar lithium project (MBLP) in WA’s Pilbara, a region which also hosts Pilbara Minerals’ (ASX:PLS) Pilgangoora operation and the Albemarle and Mineral Resources’ (ASX:MIN) Wodgina joint venture.
The company is drilling to find the edges of the 10.5 million tonne ‘Archer’ deposit, a swarm of spodumene-bearing pegmatites over a 3km by 1km zone which remains ‘open’ in all directions.
(Up on no news)
The tiny South African coal miner says prices for thermal coal (used in power plants) continue to improve, with the last quarter ending at a high of $US94.
That’s 45% improvement on the year before.
The trend predicts an average selling price of $US86 for the next 12 months, the company says.