Resources Top 5: Tiny goldie gets $3m thumbs-up from Mark Creasy, shares explode
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Here are the biggest small cap resources winners in early trade, Tuesday January 18.
Zuleika Gold’s share price has exploded this morning – up ~80% at the time of writing thanks to a $3m private placement with Yandal Investments, a company owned and controlled by prominent West Australian prospector Mark Creasy.
Creasy is a well-known investor with a knack of picking winners.
His holding in mining company IGO (ASX:IGO) hit the $1 billion mark last week, where Creasy owns 80.5m shares, or 10.6% of the company.
ZAG says proceeds from the private placement will be used to underpin the company’s ongoing high-impact drilling programs across multiple exploration targets at its gold-rich Kalgoorlie projects.
Zuleika managing director Annie Guo said Zuleika’s exploration team “has propelled Zuleika from an early-stage explorer to a company with the potential to enhance existing resources”.
“This early exploration success confirms the significant potential of Zuleika’s asset portfolio and the ability of its skilled and committed exploration team.”
Gold explorer AUT surged 12% after news broke that it hit up to 35g/t gold at the Pickle Crow Gold Project in Canada, extending known mineralisation outside of the 1.7 Moz at 8.1g/t gold.
This means the miner is in good stead to update the resource in February where currently five diamond drill rigs are operating.
Drilling has also kicked off on the regional exploration targets located away from the Pickle Crow mine, with testing of the southwest Powderhouse target in progress.
“The more we drill, the more gold we find,” executive chairman Ray Shorrocks said.
“This outstanding success rate reflects the world-class quality of the Pickle Crow mineralised system.”
AuTECO manages ~500sqkm of tenure in the Pickle Lake district.
Results are expected early in the June quarter.
AuTECO has a market cap of ~$139.5.
Precious metals exploration company, MTH, is focused on discoveries and production of gold and silver in Mexico’s Sierra Madre Gold-Silver Trend.
Metallurgical test work results with 94% gold and 88% silver have been recovered at the El Refugio resource from within the Copalquin Gold Silver district using only flotation and confirming a simple process route.
Now the ~$29 market cap company says AMC Consultants have started mining study work for the high-grade maiden resource area investigating open pit and underground mining options.
High-grade rock chip samples of up to 49g/t gold, 665g/t silver over 0.65m have also been returned.
“Building on the excellent high-grade gold and silver maiden resource estimate, the high recoveries of gold and silver from the flotation tests again demonstrates the attractive project metrics for our Copalquin District in Mexico,” MTH managing director and CEO John Skeet said.
“Excellent district mapping and sampling results allow other known targets areas to be assessed and prioritised for drilling in 2022.”
Grades of up to 6% TREO have been returned from pre-Christmas diamond drilling at REE’s Cummins Range Rare Earths Project in Western Australia.
Silver grades of between 2 to 4.5 ounces/tonne have been encountered in two holes, firming up the potential for REE to upgrade and expand the current mineral resource of 18.8Mt at 1.15% TREO and 0.14% niobium.
REE managing director Jeremy Robinson says these further high-grade results reinforce the potential of the primary zone at Cummins Range.
“Not only have the results extended mineralisation beyond 200m down-dip, they have also confirmed the presence of stacked mineralised zones – which bodes well for the potential to increase the tonnage as we drill the mineralisation down-dip and along strike,” he said.
“The primary zone continues to shape up as a game-changer for Cummins Range, and we are looking forward to receiving the balance of the assays from the 2021 drilling program and mapping out our development and growth strategy for this high-quality deposit in 2022.
A 36% increase in gold production for the 2021 December quarter, over the previous quarter, has been recorded by KAU – a Perth based miner with projects within the Lachlan Fold Belt spanning across NSW and into Victoria.
In January 2021 the company, which now sits on a market cap of ~$26m, recommenced trading on the ASX and delivered its first gold pour following the acquisition of the A1 mine, Maldon processing plant and exploration project in Victoria.
Today, at the time of writing, shares are up 15% with improvements in operating efficiency, gold production, and output being key targets in 2022.
The company says it plans to become a multi-mine high-grade gold producer with an exploration focus.