Resources Top 5: The small cap explorers hunting big game
Here are the biggest small cap resources movers in early trade, Tuesday August 17.
(Up on no news)
Coal is not dead yet.
Earlier this month, Bowen inked a deal to buy 90% of the Lenton JV in NSW, which includes the mothballed ‘Burton’ mine and associated infrastructure, plus the high-quality ‘New Lenton’ development project.
These coal assets have a replacement value of ~$300m, the company says.
Bowen will pay vendor New Hope Corp (ASX:NHC) $20m upfront (of which $10m can be cash or scrip at Bowen’s election) plus potential milestone and royalty payments up to the maximum value of $77.5m.
This delivers on Bowen’s strategy to be the “next leading independent ASX coal producer” – targeting production of approximately 5mtpa by 2024.
The $135m market cap stock is now up +70% over the past month.
More thick, shallow, and high-grade gold hits from the Cuba-based project developer.
Highlight results from the flagship ‘La Demajagua’ gold/silver deposit include:
The current 15,000m drilling program, aimed at establishing JORC resources and finalising planning for the proposed open pit, will be completed this week.
Assay results to be received progressively through to the end of September, the company says.
The $22m market cap stock – up 130% over the past year — hopes to start mining in 2023.
This $12m market cap minnow is hunting Olympic Dam-style IOCG deposits at ‘Mabel Creek’ and gold at ‘Comet Ridge’, both in South Australia.
Shallow infill drilling over the large ‘DG1’ gold anomaly at Comet has been successfully completed, with results expected in about three weeks’ time.
Granting of a large adjoining land holding called ‘Gina’ — which contains the drill ready ‘Target 14’ gold prospect – is also imminent, the company says.
Drilling starts next month.
The dual-listed explorer hit broad mineralised intervals at the ‘Trundle Park’ prospect in NSW “strongly indicating proximity to the core of a large porphyry intrusive system”.
Porphyry deposits, like the nearby Cadia operation, are multigenerational monsters responsible for ~60 per cent of the world’s copper, most of its molybdenum, and significant amounts of gold and silver.
“The wide interval of gold and alteration in [drill hole] TRDD022, and the extensive strike (over 500m) of near surface skarn mineralisation seen in earlier holes, are strong evidence of a large multiple intrusive porphyry gold-copper system at the Trundle Park prospect,” the company says.
“TRDD022 is highly encouraging in that we are potentially very close to our porphyry target.
“A follow-up hole is drilling to the NNW of TRDD022 for the potential higher grade and interpreted core of the targeted system.”
(Up on no news)
Fun fact: famous prospector Mark Creasy owns a touch over 55% of this small cap iron ore play.
On the CZR board is David Flanaghan, who led the development of Atlas Iron from explorer into significant Pilbara iron ore producer.
He’s hoping to do it again at CZR.
The explorer’s focus is moving the ‘Robe Mesa’ DSO deposit towards a DFS and approvals for mining during 2021.