Resources Top 5: Who just hit paydirt next door to Rumble’s Chinook discovery?

First pass drilling by Strickland uncovers zinc-lead discovery next to Rumble’s Chinook deposit
GTI Resources to start exploration at the ‘Henry Mountain’ uranium and vanadium project
Peregrine identifies a promising 450m x 150m wide gold anomaly, drill planning begins

Here are the biggest small cap resources winners in early trade, Thursday October 14.

STRICKLAND METALS (ASX:STK) and GIBB RIVER DIAMONDS (ASX:GIB)

First pass drilling has uncovered an “exciting, shallow high-grade zinc-lead discovery” at ‘Iroquois’ (80% STK, 20% GIB), right next door to Rumble Resources’ (ASX:RTR) company making ‘Chinook’ zinc-lead-silver deposit in WA.

$330m market cap Rumble is up ~390% since hitting paydirt at Chinook in April this year.

Rumble says the wider Earaheedy project could host a SEDEX style system.

Sedimentary exhalative deposits (SEDEX) are monstrous accumulations of zinc and lead which account for 25% of global zinc and lead production, and six of the 10 largest active zinc mines globally.

Strickland says all five holes at the ‘Iroquois’ target hit visual zinc-lead mineralisation. Highlights include 23m @ 5.5% Zn + Pb (combined) from 90m depth, including 14m @ 4.5% Zn from 108m and 9m @ 7% Zn + Pb from 135m.

The mineralised footprint looks substantial, chief exec Andrew Bray says. These zones have so far been intersected 300m along strike, and nearly 300m down dip with further assays awaited.

“This is the first-time mineralisation in fresh rock has been tested in the area, with historic shallow drilling targeting only a secondary manganese oxide zone (enriched with zinc and lead) near surface,” he says.

“Given the lateral extent of this mineralisation, it suggests that the primary mineralisation footprint is only going to grow from here. Mineralisation remains open in every direction.”

Strickland are modifying the ongoing RC drilling to return to Iroquois “as a high priority” part of the current program.

“It’s expected up to eight further holes will be drilled to test for extensions along strike and down dip, prior to a large-scale drilling campaign getting underway first thing in 2022,” Bray says.

The $106m market cap explorer is up 135% over the past month.

REEDY LAGOON (ASX:RLC)

The former gold and iron ore play is going all in on lithium, and investors approve.

A couple of years after mothballing its US brines projects due to poor sentiment and lack of suitable processing methods, ‘Alkali Lake North’ and ‘Clayton Valley’ have now been hauled out from the dusty recesses of Reedy’s project portfolio.

A suitable processing method has emerged called ‘Direct Lithium Extraction’, championed by popular stocks like Vulcan Energy (ASX:VUL) and Lake Resources (ASX:LKE).

Unlike evaporation ponds, DLE pumps lithium-bearing ground water through a process plant, extracting the lithium while enabling the bulk of the water to be returned into the ground.

Today, Reedy announced that geophysical surveys have extended lithium brines targets at ‘Alkali North’ in Nevada.

“The project now has multiple brine targets indicated in 2D and 3D AMT survey data,” the company says.

“The targets have substantial size and extent and are located within a basin interpreted in gravity survey data. The Company considers these to be prime targets for lithium bearing brine.”

Reedy is investigating follow-up geophysical surveys to better define the lithium-brine targets at both projects.

The $15m market cap stock is up 25% over the past month.

GTI RESOURCES (ASX:GTR)

The uranium bull market is back on.

Following yesterday’s gains, spot soared an incredible $US7.50/lb overnight to $US48/lb.

That’s just below the recent peak of +$US50.50/lb reached September 18, and global uranium stocks are going mental.

Record high since I started tracking 👇 pic.twitter.com/OdyRwKYhMd

— Stokdog (@stokdog) October 13, 2021

A great time, then, for GTI Resources to start exploration at the ‘Henry Mountain’ uranium and vanadium project in Utah, US.

This phase of fieldwork will guide drill targeting for drilling during Q1 2022, the company says.

The explorer is also looking to expand its uranium exploration portfolio after completing due diligence on the purchase of the Wyoming ISR uranium properties earlier this month.

Exploration permitting at the project is already under way, with a maiden 15,000m drill program planned to take place at the ‘Thor’ project in late 2021.

RIEDEL RESOURCES (ASX:RIE)

Initial results from follow-up drilling at the ‘Kingman’ gold project in Arizona are due late November, the company says.

In March, the $14m market cap explorer surged after hitting high grade gold and silver in the Tintic prospect.

The highlight was 1.5m at 230.8g/t gold and 359g/t silver from 20.6m. Anything above 5g/t gold is generally considered high grade.

That where current drilling is now focussed.

In this program to date, 23 holes have been drilled at ‘Tintic’ with three holes completed at ‘Merrimac’, Riedel says.

“The team has now drilled holes in a zone stretching 500m in a north-south direction along the 700m long Tintic trend, so we are looking forward to seeing the results in due course,” chairman Michael Bohm says.

“We will announce the drill assay results as they come to hand, with a target of mid to late-November 2021 subject to laboratory turnaround times.”

PEREGRINE GOLD (ASX:PGD)

Chaired by serial small cap director Ian Middlemas, Peregrine listed in March with the ‘Pilbara’ gold project.

The ground is a proverbial stone’s throw from Capricorn Metals’ (ASX:CMM) ~125,000ozpa ‘Karlawinda’ gold operations, which have ramped up nicely in 2021.

Peregrine says early-stage rock and soil sampling has now identified a promising 450m x 150m wide coherent gold anomaly called the ‘Birdsnest’ prospect.

The company intends to undertake a drilling program over Birdsnest, subject to completion of Program of Works and heritage surveys.

The $14m market cap stock is up 115% on its IPO price of 20c per share.