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Resources Top 5: This ASX explorer is poking a porphyry giant
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- Los Cerros, Zenith and Impact all gain on impressive drilling results
- Riedel launches drilling campaign at high grade gold project in Arizona
- Jadar raises cash for gold exploration, keeps lithium project in the back pocket for now
Here’s your top ASX small cap resources winners in morning trade Thursday, January 21.
The Colombian explorer just hit a 320m long “porphyry-style” intersection at the Tesorito South target grading 1.5g/t gold from surface.
That includes a 102m long higher grade section grading 2.11g/t gold from 28m.
Porphyries are the holy grail for explorers: multigenerational monstrosities responsible for ~60 per cent of the world’s copper, most of its molybdenum, and significant amounts of gold and silver.
“The 480 gram-metre gold intersection starting from only 2m below surface is Los Cerros’ best porphyry intersection, and comparable to the strongest gold porphyry intercepts in the MidCauca gold belt, which hosts several multi-million-ounce gold and gold-copper deposits,” the company says.
A 5000m drilling program will kick off late January at the recently acquired high grade Kingman gold project in Arizona.
Kingman was mined up to 1942. No mining, and not much exploration, has occurred since.
This drilling will test a number of areas where high-grade gold and silver was mined from the 1880s to the 1940s, and where high gold and silver grades were intersected at shallow depths in a 2019 diamond drill program, Riedel says.
First results are anticipated in late March.
Before buying Kingman, former shell company Riedel had been reviewing new projects since March 2019. The explorer recently featured in our ‘How to find the next multi-bagger resources stock’ series.
Zenith is scratching the edges of a mineral-rich ‘breccia pipe system’ at its Red Mountain gold project in Queensland.
There were five separate visible gold hits – including a highlight 1m 10.4g/t – in one drill hole.
The last occurred at the very end of the hole.
“The confirmation of extensive visible gold and strong gold grades in what we believe to be the upper levels of a breccia pipe system will now lead us to push the drilling program to explore much deeper – that is below the 180 vertical metre level,” Zenith executive chairman Peter Bird says.
“We are potentially still only exposing the upper portion of a breccia pipe system if other similar well documented systems such as Mt Wright are a proxy.”
The nearby “pencil-like” 1.1moz Mt Wright gold orebody is only 200m long but over 1.2km deep.
Another impressive drilling result.
138m at 0.3 g/t 3PGE (palladium, platinum and gold) was returned from the Red Hill intrusion, part of the Broken Hill project in NSW.
Impact says the deeper part of the Red Hill intrusion — beneath the new stand-out drill intercept — is a compelling priority target for follow up drilling, which is now being planned.
Late Wednesday arvo explorer Jadar announced a $1.8m cap raise to “progress activity” on its Latin American precious metal projects.
While it looks to be on the backburner for now, Jadar’s Austrian lithium project licence was also extended for another five years.
Jadar’s Weinebene project is next to European Lithium’s (ASX:EUR) Wolfsberg deposit, “where the company postulates that the veins which comprise the JORC compliant 10.98 million tonne at 1. Per cent Li2O resource … strike into the Jadar’s Weinebene project area”.
Mentioning the dusty lithium assets in your portfolio never goes astray in a bullish market like this.
