Resources Top 5: Timely ground grabs, a hint of discovery, and the $7m market cap minnow with bonus iron ore royalties
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Here are the biggest small cap resources movers in early trade, Tuesday, April 27.
The small explorer’s share price hit 28-month highs on encouraging results from early exploration at its 2,587sqkm ‘Sefton’ gold project in WA.
Octanex believes there could be a big gold resource just waiting to be discovered at Sefton, which is effectively unexplored.
A recent ‘lag sampling’ program has now identified multiple gold anomalies.
In lag sampling, explorers ride around on postie bikes* screening largish, surface particles (2–6mm) from the unconsolidated surface material:
If mineralised, these samples can point the large bedrock deposits deeper down.
Encouraging results up to 3.2 parts per billion (ppb) gold — considered high for lag samples — has now identified six gold anomalies for follow-up.
The next phase of lag sampling (planned for May) will expand the reconnaissance sampling into areas not yet been tested and complete closer spaced infill sampling around the known areas of anomalism, Octanex says.
*postie bike optional
(Up on no news)
Castle’s +40% gain could be a delayed market reaction to its timely ground grab – announced April 19 — around Rumble Resources’ (ASX:RTR) significant lead-zinc discovery at Earaheedy in WA.
“Castle’s three applications for large tracts of ground in the Earaheedy Basin are consistent with its strategy of positioning itself at low-cost in emerging prospective terranes,” Castle managing director Stephen Stone says.
“At this early stage, and whilst the applications are being processed, the focus will be on compiling and critically reviewing historical datasets and evaluating the progress made by neighbouring explorers.”
“In particular, the Withnall application is adjacent to licences hosting the Chinook – Magazine zinc-lead discovery of Rumble Resources.”
(Up on no news)
Prospect generator Cullen Resources is focused on three early stage WA projects: Wongan Hills (nickel-copper-PGE), Barlee (gold) and North Tuckabianna (copper-gold).
But this ~$7m market cap minnow also has potential iron ore royalties in its back pocket – that’s future cash flow from Wyloo, in Fortescue’s (ASX:FMG) Western Hub (Eliwana) and the proposed West Pilbara Iron Ore Project.
With iron ore prices punching through $US190/t, that’s not a bad option to have.
Alongside mine finder Chalice (ASX:CHN), Caspin – formerly Cassini – was hunting nickel-copper-PGEs in the Julimar region near Perth well before it was cool.
Maiden drilling has just kicked off at the flagship ‘Yarawinda Brook’ project to test multiple, strong bedrock conductors over 700m long at the XC-29 anomaly.
Caspin will also test a recently recognised PGE target at the ‘Yarabrook Hill’ prospect.
The battery-focused nickel company has appointed veteran mining engineer Jim Simpson to the board as it advances the TECH project towards development.
“Jim brings with him a wealth of resources and corporate experience and has a detailed understanding of what is required when taking a resources project through its technical feasibility and funding/development phases and ultimately into production,” Queensland Pacific Metals chairman Eddie King says.