Resources Top 5: Thick copper, bonanza gold, and a perfectly positioned coal miner
Link copied to
Here are the biggest small cap resources winners in early trade, Monday October 4.
Drilling hit a highlight 124m of continuous ~1% copper, zinc and lead mineralisation at the Onedin deposit, part of the flagship ‘Koongie Park’ project in northern WA.
AKN are drilling to grow existing JORC 2012 resources of 6.36Mt @ 1.3% copper, 4.1% zinc, 0.3g/t gold and 26g/t silver.
This project is significantly under-explored at depth and highly prospective for further metal below 150m, the company says.
“The result from hole AOWB003 exceeded all expectations – 124m of continuous 1% copper, zinc and lead mineralisation; high grade intervals of silver and molybdenum near bottom, with the existing hole ending in significant mineralisation,” AKN boss Paul Williams says.
The hole – drilled for water bore purposes – was terminated at 132m, but the strong mineralisation at end-of-hole has prompted the company to extend it by a further 170m.
A 7,500m combined RC and diamond drill program is ~50% complete. Drilling will continue into November, with ongoing assays reported until the end of year, Auking says.
The $18m market cap explorer is up 112% since relisting on the ASX with Koongie Park earlier this year.
(Up on no news)
The obscure Russia based coking/thermal coal producer enjoyed a 108% revenue increase over the June quarter as prices boomed.
It still suffered a small net loss of $309,000 for the quarter – down 98% on the PCP — on the sale of 175,000t.
However, with Aussie coal off the cards for major consumer China, this quarter is looking even better for premium hard coking coal out of jurisdictions like Russia.
$270m market cap TIG is up 130% year-to-date.
(Up on no news)
RRR is now +90% since listing on the ASX late last month.
The focus is two advanced copper projects in Queensland – Dianne, which is a near-term production prospect near Cairns; and Osprey, which consists of six exploration permits north of Mt Isa.
The cashed-up company, which raised ~$12m in its IPO, aims to kick off drilling at Dianne in preparation for a maiden JORC resource.
Historically, Dianne produced 63,578 tonnes of copper at an eyewatering average ore grade of 22.7% copper.
“World markets need new copper supply and demand is forecast to grow up to 600 percent, so we have come to the market to fast-track the development of our copper projects in North Queensland,” managing director Pat Williams says.
“We look forward to updating the market with our upcoming programs in the coming weeks.”
This lithium chemicals hopeful wants binding offtake deals for most lithium and caesium output from ‘Phase 1’ before the end of 2021 to secure debt finance.
LPD wants to build a lithium mine and concentrator in Namibia, and a chemical conversion plant in Abu Dhabi.
The company, which is in discussion with eight potential buyers, says considerable interest led Lepidico to re-run its pilot plant.
A pilot plant is a smaller version of the real thing, designed to see if the process works at scale.
Sample volumes of lithium hydroxide, caesium sulphate, hydroxide and carbonate, rubidium sulphate, SOP, amorphous silica and gypsum residue will be delivered to several potential offtake partners, the company says.
“We continue to receive unsolicited inbound enquiries for our products,” LPD managing director Joe Walsh says.
“We have already prioritised discussions with three groups, based on their potential as long-term partners for the bulk of the Phase 1 lithium and caesium output.
“These discussions also take into account their ESG requirements, on which we expect to provide more detail shortly.”
Given 2025’s lithium deficit is expected to exceed the industry’s total production output in 2016, Walsh says “market conditions are extremely favourable for lithium chemical suppliers”.
The $155m market cap stock is +140% year-to-date.
More thick, shallow, bonanza gold from Slovakia-based explorer MTC.
Hole UGA-18 at the ‘Sturec’ deposit hit 38m at 16.38g/t gold and 8.1g/t silver from 44m, which included 6m section grading 101.15g/t gold from 76m.
Anything above 5g/t is generally considered high grade. Astonishing stuff.
“Sturec is shaping up to be an extraordinary deposit with bonanza grade potential,” MTC chairman Russell Moran says.
“As we step out further away from where historic mining occurred, we are hopeful that we will continue to hit these incredible mineralised zones which can expand on and help grow what is already a very exciting and significant gold resource.”
MTC investors need to finalise their shareholdings by October 7 to receive free shares in lithium spinout Winsome Resources (ASX:WR1).
The $127m market cap stock is up 267% year-to-date.