• Drilling is ongoing across multiple prospects at Hamelin Gold’s flagship ‘West Tanami’ project
  • Satellite imagery uncovers new targets at Eclipse Metals’ ‘Ivittuut’ multi-commodity project in Greenland
  • Danakali (potash), Metals Hawk (gold, nickel), Santa Fe (base metals) up on no news

Here are the biggest small cap resources winners in early trade, Tuesday June 14.

 

HAMELIN GOLD (ASX:HMG)

The junior explorer listed late 2021 as a spin-out of Encounter Resources (ASX:ENR) with a focus on the remote, mineral rich Tanami Desert.

Majors Gold Fields and Silver Lake Resources (ASX:SLR)  each snatched up a 10% stake on listing, which they have maintained.

Drilling is ongoing across multiple prospects at the flagship West Tanami project, the company said today.

“Hamelin currently have two drill rigs operating in the West Tanami and in this current program we will see initial RC and/or diamond drilling at seven large scale gold prospects,” managing director Peter Berwick says.

“We expect to receive first assays from this program in July/August 2022.”

The $14m market cap stock has bounced back from recent lows but remains down 11% year-to-date. It had $8m in the bank at the end of March.

 

METAL HAWK (ASX:MHK)

(Up on no news)

It was wild ride for this WA-based nickel and gold explorer in 2021.

In September, it spiked over 250% in one day – from 19c to 68c — after uncovering Kambalda-style nickel in maiden drilling at the ‘Berehaven’ project near Kalgoorlie.

Follow up exploration didn’t tick the right boxes for investors, and the share price dropped almost as fast.

Exploration is ongoing across a bunch of targets.

But MHK also has another interesting iron in the fire – namely, exploration joint ventures worth $9.75 million with Western Areas (ASX:WSA) (soon-to-be owned by IGO (ASX:IGO)) and Chalice (ASX:CHN) gold spinoff Falcon Metals (ASX:FAL).

The $10m market cap stock, part owned by WSA (6.4%) and Horizon Minerals (ASX:HRZ) (5.2%), is down 40% year-to-date. It has about $3m in the bank.

 

SANTA FE MINERALS (ASX:SFM)

(Up on no news)

Late last year the explorer signed a deal to earn into the early stage ‘Mt Murray’ project in WA, where it is hunting a nickel-copper-PGE deposit à la Chalice Mining’s (ASX:CHN) Gonneville.

It includes a 4.2km x 1.2km magnetic high zone considered to represent a mafic-ultramafic intrusive package prospective for nickel-copper-PGEs.

In an early April exploration update the company announced a planned 100m line spacing detailed aeromagnetic survey in the June 2022 quarter which will “provide robust data sets for additional geophysics and drilling.”

SFM has been quiet in 2022 and is down 15% year-to-date. The $8m market cap stock had $4m in the bank at the end of December.

 

ECLIPSE METALS (ASX:EPM)

Satellite imagery has uncovered new targets at the ‘Ivittuut’ multi-commodity project in Greenland.

Two large mineral anomalies were identified that have never been sampled or drill tested at Ivittuut, which comprises a historic cryolite mine, prospective for high-purity quartz, fluorite, base metals and REE, and the Grønnedal-Ika syenite carbonatite complex, prospective for rare earths.

“We are delighted that Sentinel-2 satellite imagery analysis, which is a proven and cost-effective technology for screening large areas of exposed rock, has delivered new high-priority targets for REE and base metal mineralisation,” exec chairman Carl Popal says.

“We are planning to field check the highest-ranked anomalies as part of the ongoing summer exploration campaign.”

The former NT uranium play changed focus – and location — buying “the world’s largest and only” cryolite mine in Greenland in January last year.

Over 120 years between 1865 and 1985, the Ivittuut mine produced 3.8 million tonnes of high-grade cryolite, a rare mineral proven to reduce energy consumption in aluminium production.

Aluminium smelters use a huge amount of power as they run 24 hours a day, 365 days a year. The Tomago smelter, for example, uses about 10 per cent of NSW’s total power supply each year.

The mothballed mine also contains rare earths (REE) and base metals. There’s an additional REE target 10km away called ‘Gronnedal-lka’, which has not been properly tested.

The $62m market cap stock is down 44% year-to-date. It had about $1.5m in the bank at the end of December.

 

DANAKALI (ASX:DNK)

(Up on no news)

Potash fertiliser prices have been flying, which puts this near-term producer in a fairly good spot.

“The price impact of the conflict between Ukraine and Russia is impacting fertiliser prices globally and CRU considers potash is moving up on its lists of commodities most at risk,” DNK says in its latest quarterly.

DNK’s ‘Colluli’ potash project has the world’s largest JORC compliant reserve at 1.1Bt.

The downside is the location — Eritrea in Africa — which is governed by one of the most oppressive regimes in the world. Eritrea’s military is also one of the largest in Africa.

Which makes DNK a high risk, high reward investment.

The $100m market cap stock has been quiet in 2022, losing 30% of its value year-to-date. It had ~$19m in the bank at the end of March.

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