- Renascor ink farm-in JV with major miner Rio Tinto
- Megado Gold hits the ASX with a 30pc gain in early trade
- Popular gold explorer REZ raises $3.3m in ‘heavily oversubscribed placement
Here’s your top ASX small cap resources winners in morning trade Tuesday, October 27.
Recognising this, major miners are throwing huge amounts of cash at explorers to form project joint ventures.
Rio Tinto (ASX:RIO) is now hunting for copper with Renascor Resources (ASX:RNU) in South Australia’s Adelaide Fold Belt.
Rio can earn up to 80 per cent in EL 5586 – part of Renascor’s Marree project – by sole funding $3m worth of exploration over five years.
“We are delighted that Rio Tinto Exploration has agreed to commit its considerable resources and expertise toward exploring EL 5586 and that Renascor shareholders will have an opportunity to benefit from the discovery potential of this highly prospective, but underexplored exploration prospect,” Renascor boss David Christensen says.
The deal also allows a cashed-up Renascor to focus on its core assets – the Carnding gold and Siviour battery anode material projects.
Ethiopia-focused gold explorer Megado Gold’s (ASX:MEG) hit the boards this morning like a bull out of a gate.
The stock — which aims to start drilling at its Babicho project in November – was up 30 per cent to 26c per share in early trade.
Popular gold explorer REZ (ASX: REZ) has raised $3.3 million in a heavily oversubscribed placement.
The company had initially set out to raise $2m but was inundated with demand and closed the book within 90 minutes.
This appetite from investors is not surprising. REZ’s share price surged more than 200% last week after the company released a new set of exploration results from the ‘Gigante Grande’ prospect at its East Menzies project.
New hits like 20m at 5g/t gold show that Gigante Grande could host “a very large mineralised system”, the explorer says.
Minnow Helix Resources (ASX:HLX) has kicked off a ~3,400m drilling program of its own at the Cobar gold project in NSW.
“In this second phase of the program, drilling will be focussed on previously untested areas identified as a high priority for drilling in the broader gold camp,” exec chairman Peter Lester says.
“Track and pad clearing at historic workings and new structural zones is being finalised this week.
“This current work is aimed at identifying areas where there is potential to extend the current ‘from-surface’ inferred resource base of 118,000oz gold”.
Up on no news:
Another minnow, Amani Gold (ASX:ANL), has a low grade but large (4.1moz) gold resource at its Giro project in the Democratic Republic of Congo.
Fellow microcap Mount Ridley Mines (ASX:MRD) recently acquired Greenland-based explorer Longland Resources and the Weld Range West iron ore project in WA’s Mid-West region.