Resources Top 5: Tolga Kumova-led gold explorer, and zinc and diamond explorers are clear winners in early trade
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Here’s your top ASX small cap resources winners in morning trade Wednesday, April 21.
Outstanding assay results for Firefly Resources’ Melville gold deposit, part of its Yalgoo project in WA, rewarded investors in early Wednesday trading with the stock rising 20 per cent at one stage.
High-grade assay results from a recently completed 7,000m drilling program included 12m at 4.48 grams per tonne (g/t) gold from surface including 4m at 8.9 g/t gold.
Melville’s assay results point to early cash flow potential and confirm the gold deposit has a widespread distribution of shallow gold mineralisation sitting above and overlying a 196,000-ounce mineral resource estimate.
Firefly Resources is pressing ahead with its 30,000m drilling program across its Yalgoo gold project, with 4,400m of drilling completed at its Don Bradman, Applecross and Crescent/Olive Green targets.
Northern Italy-focused zinc explorer Alta Zinc has hit thick and high-grade mineralisation at its Ponente prospect following step-out drilling within its Gorno project.
The drilling program has extended the mineralisation for Ponente by 80m to the north-east and 45m to the south and remains open to the north, east and south.
Drill hits at Ponente included 10.4m at 12.6 per cent zinc and 2.3 per cent lead and 30 g/t gold, and further step-out drilling programs are planned for Ponente and Pian Bracca South prospect.
“Drilling from the first four locations at the Ponente drill campaign has consistently intersected mineralisation defining what appears to be a continuous lens of mineralisation over a broad lateral footprint,” said managing director, Geraint Harris.
A follow-up presentation to the explorer’s Monday announcement of significant gold mineralisation at its Edleston gold project in Canada gave the company’s shares some traction in Wednesday trade.
A review of previous drilling logs for Edleston in Canada’s Ontario province revealed “substantial mineralised intervals” at the project that included 255.4m at 2.54 g/t gold from 75m.
“These results located 225m to the east of the main body of Edleston and 600m to the west of the Sirola zone provide confidence about the mineralisation extending between what was previously regarded as two discrete zones of Edleston and Sirola,” managing director, Dale Ginn, said.
The Tolga Kumova-chaired company said in its presentation that its Edleston project lies within the prolific Abitibi Greenstone Belt that straddles the Ontario and Quebec border, and is host to 144 million ounces of gold. A number of gold mines are present in the Abitibi belt including Kirkland Lake, Kerr-Addison, LaRonde and Timmins.
The explorer’s shares jumped as it started a 2,800m drilling program for several ‘Hemi style’ intrusive gold targets at its Pilbara gold projects in WA about ~50km north of De Grey Mining’s (ASX:DEG) legendary Hemi discovery.
Several discrete Hemi-style targets were identified during a recent aeromagnetic survey of the tenements which consist of granitic intrusive basement rocks beneath recent alluvial cover.
New Age Exploration has the right to acquire 100 per cent of the Pilbara gold tenements from Monetery Minerals under a partnership deal.
“The execution by our team has been first class and to arrive at the commencement of our maiden drilling program as planned is monumental,” executive director, Josh Wellisch, said.
The Australia, Botswana and Canada-focused diamond company rose Wednesday a day after delivering a drilling update for its Mmashoro target in the norther part of the African country of Botswana.
Historic exploration by De Beers and Firestone Diamonds on neighbouring properties to the company’s Botswana tenement in the Orapa mining area did detect some kimberlites.
Results received for two early drill holes did not show any kimberlite intersected at the company’s Mmashoro target, and a further target is under evaluation.
“While our first small drilling program in Botswana did not meet our expectations, this is only the first exploration program completed from an overall plan of 15 targets over the next 12 months,” managing director and chief executive, Peter Ravenscroft, said.
Burgundy Diamond Mines is providing $US1.5m of funding over three years for exploration at its Botswana deposit and stands to earn 50 per cent of any diamond discoveries.
The explorer’s partner in Botswana is Diamond Exploration Strategies, a private company.