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Resources Top 5: This once-sleepy small cap stock comes out of its shell with a +60pc gain
Mining
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- Former US-focused oil and gas minnow Odyssey is now a WA gold explorer
- NT uranium play Eclipse is buying a 120 year old cryolite mine in Greenland
- Lithium darling Sayona is now up is now up +260 per cent over the past month
Here’s your top ASX small cap resources winners in morning trade Thursday, January 14.
Former US-focused oil and gas minnow Odyssey Energy had been treading water for over a decade.
In 2020, the shell company finally bit the bullet and bought a couple of WA gold projects. Happy days for long suffering investors.
The stock has now reskinned (slightly) and relisted on the ASX focused on finding more gold at its high-grade Tuckanarra and Stakewell projects.
Old drilling at Tuckanarra’s ‘Bottle Dump’ prospect – an initial focus — pulled up highlight intercepts of 13m at 8.5g/t from 15m, and 8m at 10.3g/t from 88m.
The NT uranium play has changed focus – and location — buying “the world’s largest and only” (lol) cryolite mine in Greenland.
Cryolite is a rare mineral proven to reduce energy consumption in aluminium production, Eclipse says.
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.
Although cryolite has been found in other places, the 120-year-old Ivittuut mine is the only place where this mineral has been commercially extracted.
Check out this hole in the ground:
The mine also contains fluorite, siderite, quartz (high purity silica), REE and base metals.
“Ivittuut is unique in so many ways; not only as the world’s only cryolite mine with huge potential for multi commodity deposits next to a historical port but also as a source of highly sought after heavy rare earth minerals,” Eclipse executive chairman Carl Popal says.
“We have expanded the company’s technical team and we are looking forward to working on exploration programs that will deliver results not only on Ivittuut but also on our existing Australian portfolio of uranium, gold, palladium, vanadium and manganese prospects.”
(Up on no news)
Lithium prices are seeing their first sustained rise in three years and there’s a bunch of explorers along for the ride.
One of these is Sayona, which has gained ~90 per cent since announcing that major investment and offtake deal with fellow North American lithium play Piedmont (ASX:PLL) earlier this week.
The $15m windfall will help advance Sayona’s flagship Authier project, the emerging Tansim project and creation of a lithium hub in Québec’s Abitibi region, including Sayona’s proposed bid for troubled lithium mine North American Lithium.
The stock is now up +260 per cent over the past month.
RESOURCES & ENERGY GROUP (ASX:REZ)
The results are in: REZ has uncovered a large, mineralised gold system at its Gigante Grande prospect in WA.
So far, 70 per cent of drilling has intersected gold mineralisation over 1 gram per tonne.
The latest peak assay came in at 1m at 16 grams per tonne (g/t) from 97m from within a broader intersection of 4m at 4.92g/t from 96m.
Gigante Grande is now 1.2km and is over 150m wide, “with consistent mineralisation found from as close as 20m from surface down to 200m depth”.
Last week REZ made stockbroker Barclay Pearce’s list of top ASX picks for 2021.
The stock has run hard in the past year, from a bottom of 0.6c in March 2020 to a 52-week peak of 12c in October. That is a massive 1900 per cent spike.
(Up on no news)
Audalia’s main game is the Medcalf vanadium-titanium project in WA.
Successful pilot scale production in 2020 (a smaller version of the real thing) showed high recoveries of iron, vanadium and titanium.
The $20m market cap company is currently chasing environmental approvals, a ‘must-have’ for project construction to go ahead.
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