• Red River is debt free ahead of first cashflows from Hillgrove gold mine
  • MRG Metals increases size of high grade heavy mineral sands target to 17sqkm
  • US lithium play ioneer continues to make gains, now touching 6-month highs

Here’s your top ASX small cap resources winners in morning trade Thursday, October 1.

Small cap gold and base metals miner Red River Resources (ASX:RVR) is now debt free after repaying a $US6m working capital facility from operating cashflows.

Red River has a history of buying distressed mining assets and transforming them into money makers.

In late 2014, Red River purchased the Thalanga base metals operations in North Queensland from a bankrupt Kagara for $6.5m.

Red River restarted production from Thalanga in September 2017.

Last year, Red River acquired the high-grade 692,000oz Hillgrove gold mine in NSW for about $4m.

It remains on track for first gold production by the end of the year, the company says.

The stock is now at pre-pandemic levels after surging ~290 per cent from March lows.


The footprint of MRG Metals’ (ASX:MRQ) high grade ‘Zulene-Viaria’ heavy mineral sands target has increased in size to ~17sqkm.

Shares in the Mozambique-focused explorer jumped +16 per cent in early trade to eight month highs.

“These latest results from the infill auger drilling program continue to excite the team as we are witnessing significant high grades and assemblage,” MRG chairman Andrew Van Der Zwan says.

“Of huge importance is the extension of both Zulene and Viaria footprint means we could potentially be looking at a much bigger target than originally anticipated.

“We are very fortunate to already have the drilling contractor on site meaning we can immediately move to expand the program with a further seven aircore holes at the Zulene-Viaria Target – the very first aircore holes to be put into either targets.”


Up on no news:

Sleepy iron ore play Admiralty Resources (ASX:ADY) has spiked on no news …again. On September 17, the ASX issued a ‘please explain’ after the Chile-based explorer went from 0.7c to an intraday high of 3.1c per share the previous day.

Supercharged US lithium project developer ioneer (ASX:INR) has now touched ~6 month highs. It aims to have its Rhyolite Ridge project permitted and ready for construction as early as Q2 next year.

Gold-iron ore explorer Reedy Lagoon (ASX:RLC) – which also owns a lithium project in Nevada – rose on no news.