Resources Top 5(ish): Punters line up for uranium, lithium, gold and nickel plays
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Here are the top resources stocks in morning trade, Wednesday March 3.
The Big Sandy lithium project in Arizona, USA “can help President Biden deliver on his Green dream for net-zero emission by 2050”, Hawkstone says.
Early test work produced battery grade lithium at 99.7 per cent purity from Big Sandy — exceeding the 99.5 per cent purity benchmark for battery grade lithium.
Lithium recoveries of 90 per cent were also “demonstrated with minimal downstream losses”.
Now it’s all about ramping up. Design of the bench scale (lab scale) and pilot-scale (smol plant scale) phases is currently underway, with bench scale testing due to kick off in March 2021, Hawkstone says.
“With drill approval imminent at Big Sandy, the company will rapidly progress development of the project to realise its full economic potential,” managing director Paul Lloyd says.
Hawkstone is up ~400 per cent since mid-January.
Carawine announces highest grade gold hits to date at the ‘Hercules’ discovery — “further increasing the potential for [the prospect] to develop into a major new gold deposit”.
Hercules is part of the Tropicana North project in WA, a stone’s throw from the world class Tropicana mine which produced 112,000oz of gold in the December quarter.
Carawine is hitting multiple ‘lodes’ (rich sources of mineralisation) in drilling, with highlights including 18m at 11.3g/t from 136m across two lodes.
That’s impressively thick and high grade.
“We are planning a follow-up drilling program to test for extensions to the mineralisation, which remains open, with the potential to increase the strike length with depth,” Carawine managing director David Boyd says.
The stock is up 110 per cent since announcing the discovery in late February.
It’s good to see small cap explorers, like Carawine and Accelerate, rewarded for genuinely encouraging drilling results.
Accelerate says a late 2020 drilling campaign at the ‘Rossland’ gold project in Canada returned hits like 4.1m at 15.6g/t gold.
Anything above 5g/t is generally considered high grade.
Results for another hole are pending, and planning for follow-up drilling of ‘high priority’ targets is now underway.
(Up on no news)
Popular uranium explorers/project developers Bannerman and Allligator are hoping to take advantage of an anticipated surge in demand (and pricing) for the nuclear fuel.
Bank of America analysis predicts delayed power plant closures could boost global uranium demand by 26Mlbs, “unleashing a meltup in uranium stocks”, according to ZeroHedge.
London uranium investment fund Yellow Cake PLC is now raising +$US110m to buy at least 3.5 million pounds of physical uranium in a bet the price is going to rise.
Bannerman’s Etango-8 project in Namibia has been ‘reimagined’ as smaller scale mine initially, but with the ability to ramp up production as demand improves.
Alligator kicked off early exploration at its newly acquired Samphire uranium project in South Australia last month.
Bannerman and Alligator are up +200 per cent and 250 per cent, respectively, over the past 4 months.
(Up on no news)
The company is also exploring for gold at its Penny South project, next to Ramelius Resources’ (ASX:RMS) Penny West project in WA’s Youanmi gold mining district.
$15m market cap Aldoro — which featured recently in our ‘forgotten resources stocks that could conceivably be the next multi-bagger’ series – is up ~50 per cent year-to-date.