Resources Top 5: Uranium price jumps, stocks follow
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Here are the biggest small cap resources winners in early trade, Wednesday October 13.
The uranium spot price has arrested a recent slide, jumping +$US3 to above $US40/lb overnight after Sprott stacked another 400,000lb.
And as the power crisis continues to wreak havoc in Europe, France – which gets ~70% of its electricity from nuclear — has announced plans to develop and export SMR’s (small modular reactors) to its energy-starved neighbours.
This assortment of good news sparked big ETF buying overseas, with big money also pouring into individual US and Canadian uranium stocks.
Today Global X #Uranium (70%) & #Nuclear (30%) ETF $URA had both its highest single day Upside move (+11.7%) and highest volume day in its history with over 6.1 Million shares traded.🚀 That intense demand translates into massive buying of all the #stocks held by the ETF.🎡🤠🐂 pic.twitter.com/M30Kbzj8Yq
— John Quakes (@quakes99) October 12, 2021
ASX uranium stocks opened with a flourish today.
17 of the 22 uranium stocks on our list are up by more than 10%; five by more than 20%.
Winningest producers (and near term producers) included Paladin Energy (ASX:PDN), Bannerman Energy (ASX:BMN), Deep Yellow (ASX:DYL), Peninsula Energy (ASX:PEN), Vimy Resources (ASX:VMY), Boss Energy (ASX:BOE) and Lotus Resources (ASX:LOT).
The explorer – led by ex-Northern Minerals (ASX:NTU) front man George Bauk – has picked up rocks containing up to 12.45% total rare earths (TREO) at the ‘Tanami’ project in WA.
Of the 17 rock chip samples from ‘Killi Killi East’ prospect, 13 returned assays greater than 1% TREO. Heavy rare earths comprised 80% of the TREO, on average.
“These are significant heavy rare earth results,” Bauk says.
“I believe these results are as significant as those announced in 2010 when [Northern Mineral’s] Wolverine [REE] deposit was first discovered at Browns Range,” Bauk says.
“What we have uncovered to date at Killi Killi indicates there is significant potential within the Killi Killi Corridor, which is over 2km long, and the regional target of over 18km along the Killi Killi East/Watts Rise trend.”
“What we have is a project in the Tanami that has the potential to be the next significant HRE project in Australia and perhaps the world.”
Rock chip samples also returned assays of 8.94g/t and 4.43g/t gold.
Next steps include more soil sampling and follow up drilling at ‘Watts Rise’ and ‘Killi Killi East’ targeting rare earths and gold.
The recently listed Rox Resources (ASX:RXL) spinout has hit thick nickel sulphides in its first 3 holes at ‘Musket’, part of the flagship Fisher East project in WA.
14.94m @ 1.90% nickel from 366.15m in hole MFED083
4.94m @ 1.79% nickel from 559.77m in hole MFED084
5.81m @ 2.29% nickel from 584.35m in hole MFED088
The combined resource at the Musket, Camelwood, and Cannonball prospects – 78,000t of nickel — is about to get a whole lot bigger, the company says.
“The assay results show that the mineralisation continues down-plunge at better than the average grade of the existing resource,” Cannon chief exec Steve Lynn says.
“The system is totally unconstrained at depth and laterally within the northern mineralisation trend.
“This current round of drilling confirms that significant resource growth can be expected with well targeted future drilling.”
Drilling has now been extended from 4,000 metres to 6,300 metres, with assays pending for ‘Camelwood’ and ‘Sabre’.