Resources Top 5: This explorer could have the tail of WA’s next ‘Julimar-like’ discovery
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Here are the biggest small cap resources winners in early trade, Wednesday February 9.
That’s right — CPN is arguably the Julimar OG.
It is also a “clear standout” in the region, according to CHN, which currently holds a 9.2% stake in the explorer.
CHN’s punt could be rewarded sooner than later. Drilling has just hit 62m of significant nickel and PGEs at the ‘XC-22’ prospect, part of CPN’s flagship ‘Yarawinda Brook’ project.
The intercept includes two distinct high-grade zones:
Mineralisation remains open in all directions. Two drill rigs are expected to hit the ground hard from late February to test the size of this thing.
This a substantial leap forward on the pathway to discovery, CPN CEO Greg Miles says.
“We’ve confirmed significant nickel and copper sulphide mineralisation at shallow depths associated with the AEM anomaly that stretches over 700m,” he says.
“The lower PGE-rich mineralisation is probably even more enticing. This is the first time we’ve been able to demonstrate continuous PGE mineralisation from surface into the basement rocks at potentially economic levels.”
“The geological setting is also different from what we’ve previously observed within the Central Yarabrook Hill area and is more akin to mineralised settings at [Chalice Mining’s] Gonneville.”
The $62m market cap stock is down 25% year-to-date. It had $12.3m in the bank at the end of December.
The Artemis Resources (ASX:ARV) spinout is interested in battery-facing metals like copper and nickel.
Chief among its targets is the Whundo copper mine, which already contains an indicated JORC 2012 resource of 2.7Mt at 1.14% copper and 1.14% zinc, along with the Ruth Well deposit, which holds 152,000t at 0.5% copper and 0.6% nickel.
Today, GRE announced that high grade copper-zinc had been intersected in ‘twin’ drilling at Whundo — including a highlight 21m (22–43m) with a high of 3.7% Cu and 18.5% Zn, and 16m (49–65m) with a high of 4.6% Cu and 16.0% Zn.
‘Twinning’ is this case refers to punching a hole right down the throat of a historic one to verify existing drill records.
It’s not a fresh hit as such; it just proves the old timers were correct.
“We are very pleased that our initial test holes into the Whundo resource has provided strong confirmation of the significant copper and zinc grades historically mined at Whundo,” GRE exec director Thomas Reddicliffe says.
“This is a great start to our drilling program with modelling of the Whundo legacy drilling and other datasets also providing valuable insights into post emplacement dislocation of the greater Whundo resource.”
“We remain excited about this maiden drill program for Greentech and are very confident that as our investigations progress the significance of this unusual copper-zinc resource will be enhanced”.
GRE has also completed 11 holes for 1,200m (out of a 3,000m) focused on testing for lateral and deeper extensions to the eastern and western parts of the Whundo resource.
Drilling continues, and assays are pending.
The $9.5m market cap stock is up 75% on its IPO price of 20c per share.
Iron ore prices are surging once again, which is good news for junior explorer/ aspiring miner developer SRN.
It’s Perenjori magnetite project in the Mid-West of WA currently hosts a non-JORC 2012 resource of 192 million tonnes at 36.6 per cent iron.
It has an additional exploration target of 870 to 1,240 million tonnes (Mt) at a grade of 29% to 41% iron.
Metallurgical test work done during a previous scoping study demonstrated Perenjori could produce a high-grade and acceptably clean magnetite concentrate of up to 70%, the company said.
SRN now plans to upgrade the current resource and follow up with a feasibility study.
Today, it said that talks with potential offtake partners had kicked off. These offtake agreements would underpin future project financing, it says.
“Magnetite is increasingly being recognised as the iron ore feed that will help decarbonize the steel industry,” the company says.
“Perenjori ore has one of the highest iron contents amongst its peers.”
“The Inferred Resource grade of 36.6% Fe is 2% to 6% higher than other magnetite resources in the Mid-West district,” SRN added.
“At the mining and processing level, this higher grade means less ore needs to be mined to produce the product, significantly enhancing its economic value.”
“The Perenjori Premium Iron Project can deliver low carbon magnetite concentrate into the next generation of environmentally friendly steel mills.”
$23m market cap SRN is up 60% year-to-date. It had ~$2.1m in the bank at the end of December.
Coda Minerals (ASX:COD) has tabled a takeover offer for junior JV partner Torrens at a 30% premium to TRN’s last closing price.
The merger would mean consolidating ownership of the ‘Elizabeth Creek’ copper project in South Australia, which includes the exciting ‘Emmie Bluff Deeps’ target.
On 9 June 2021 COD announced that its first diamond drillhole at ‘Emmie Bluff Deeps’ IOCG target in South Australia had intersected 200m of “intense IOCG alteration”, including~ 50m of copper sulphides.
The market loved it. IOCG (iron oxide copper gold) discoveries — while often super deep — are big, lucrative, and rare as hens’ teeth.
Subsequent assay results confirmed the potentially company making find which, since then, has only gotten bigger.
TRN’s Board of Directors unanimously recommend that shareholders accept the offer “in the absence of a superior proposal”.
It looks like a done deal either way, with shareholders collectively representing 42.2% of TRN’s shares indicating support.
Post deal, COD was expected to have an implied market cap of ~$109 million (prior to any re-rate). The all-share nature of the offer preserves Coda’s strong balance sheet, which has current cash of $14m.
(Up on no news)
Another iron ore explorer going on a nice run.
In February last year, the iron ore explorer signed a deal to hopefully commercialise its Mariposa project in Chile.
Under the contract, Chinese company Hainan fully funds mining and construction “with all capital contributions, security, legal costs, risks and potential losses borne by Hainan solely”.
The deal covers the first 2 million tonnes of iron ore.
Admiralty will get a ‘laddered’ royalty rate up to 7 per cent per tonne of iron ore produced if the price stays above US90/t.
In its Dec quarterly the company said it is” now progressing to settling a final Joint Venture Agreement between the Company and Hainan”.
“In parallel with settling the Joint Venture Agreement with Hainan, ADY and Hainan have continued to progress towards commencement of construction activities at Mariposa – now expected to commence by the end of May 2022,” it says.
“The Company notes that delays in settling the Joint Venture Agreement and enabling commencement of activities at Mariposa were largely due to COVID-19 related travel disruption particularly given Hainan’s operations team have previously been unable to apply for visas to enter Chile, however this process is now underway.”