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Resources Top 5: More lithium projects snapped up as ‘price rally reboot’ approaches

Askari Metals pegs the ‘Red Peak’ and ‘Mt Deverell’ lithium projects in WA MinRex Resources also expanding its lithium portfolio, … Read More
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This article was originally published by Stockhead
  • Askari Metals pegs the ‘Red Peak’ and ‘Mt Deverell’ lithium projects in WA
  • MinRex Resources also expanding its lithium portfolio, picking up at least 4 projects in the Pilbara
  • Mark Creasy backed Galileo Mining could be scratching the surface of a massive sulphide discovery

Here are the biggest small cap resources winners in early trade, Wednesday November 17.

 

ASKARI METALS (ASX:AS2)

Another gold stock dips a toe into lithium. And why wouldn’t they?

With prices for hydroxide and carbonate already up 265% and 345% year-to-date, insiders have reported to Benchmark Mineral Intelligence that some non-integrated spodumene converters (those without access to a mine) are beginning to run out of feedstock.

This could force some to switch to a tolling business model, “indicating potential for price rally reboot if fears over availability reignite”, Benchmark says.

There is a distinct supply crunch developing which sets this current lithium market apart from previous lithium price spikes, AS2 exec director Gino D’Anna says.

“This current pricing environment is becoming the new normal,” he says.

“Western Australia has always been the leading jurisdiction for hard rock lithium exploration, development and production and Askari Metals is now well placed to leverage its skills and experience in this exciting space.”

AS2 has pegged the ‘Red Peak’ and ‘Mt Deverell’ lithium projects in WA following a “search for under-explored lithium pegmatite projects located in proven geological settings”.

At least 11 significant pegmatites have been mapped at Red Peak, several more than 3km long and between 150m and 200m wide. The project is also prospective for uranium, another booming commodity.

Besides lithium, Mt Deverell also has lead-zinc potential, similar to the nearby ‘Abra’ deposit owned by mine developer Galena Mining (ASX:G1A).

The recently listed $7m market cap stock is up 20% on its IPO price of 20c per share. It had about $4.7m in the bank at the end of September.


 

MINREX RESOURCES (ASX:MRR)

MRR is also expanding its lithium portfolio, picking up four projects in the Pilbara region of WA.

This is all part of an strategy to become “an emergent lithium explorer with high-quality assets” within 70km of world-class lithium and tantalum producers Pilbara Minerals (ASX:PLS) and Mineral Resources (ASX:MRL), it says.

A further 97sqkm in exploration licence applications are currently subject to a ballot across four projects, including three tenements surrounding and adjoining Global Lithium’s (ASX:GLI) 10.1 million tonnes at 1.1% Li ‘Archer’ project near Marble Bar.

“These projects have been carefully chosen by MinRex as part of its Pilbara tenement acquisition plan,” CEO Pedro Kastellorizos says.

“At this stage we are extremely confident that we have the projects and team ready for exploration in the heart of the eastern Pilbara lithium hotspot.”

Field mapping and surface soil/rock chip sampling will kick off to evaluate the lithium potential of the numerous pegmatites in all areas, MRR says.

The $16m market cap stock is up 25% over the past month. It had ~$2m in the bank at the end of September.

 

GALILEO MINING (ASX:GAL)

The Mark Creasy and IGO (ASX:IGO) backed explorer (24.6% Creasy, 8.9% IGO) could be scratching the surface of a massive sulphide discovery at the ‘Norseman’ project, located within WA’s rich Kambalda nickel belt.

Early stage aircore drilling was unable to substantially break through the massive sulphide, but these are the sort of samples GAL is pulling up:

Massive sulphide chip (25mm across) from 60m in NAC105. Bottom of hole sample pile on right. Drillhole was unable to break through sulphide.

Hitting massive sulphide in an aircore drill program is an exceptional result, GAL managing director Brad Underwood says.

“Although the portable XRF measurements show minor amounts of nickel and copper, the overall context of the mineralisation is incredibly prospective,” he says.

“The sulphide occurs on the margin of a large ultramafic intrusion in the exact setting where mineral deposits can occur.

“Further to that, the sulphide is just 52m below surface (60m downhole) and with the prospective unit under a clay/alluvium cover which means the target is blind at surface.”

Samples have been submitted to the lab for analysis which will include palladium, platinum, and gold assays.

Meanwhile, the aircore drill program continues and is expected to be completed over the coming weeks. Follow-up work on the massive sulphide prospect will include EM surveying to define the orientation of the target prior to RC drill testing, planned for 2022.

$38m market cap GAL is down 6% over the past month. It had ~$10.4m in the bank at the end of September.

 

CRADLE RESOURCES (ASX:CXX)

(Up on no news)

Cradle is a shell company “focused on assessing and acquiring new business opportunities and assets” since offloading its share in a Tanzanian niobium project mid-year.

There’s a tight deadline in place to find something new if it wants to keep trading on the ASX.

“ASX will allow the company a period of 6 months from 28 June 2021 to demonstrate its operations are sufficient to warrant its continued listing otherwise ASX will suspend trading in the Company’s securities on 28 December 2021,” CXX said in its latest quarterly.

The $9m market cap stock had ~$670,000 in the bank at the end of September.

Stockhead has approached the company for comment.

 

HAWTHORN RESOURCES (ASX:HAW)

(Up on no news)

This $40m market cap stock is now up three days straight – for a cumulative gain of ~120% — after a subsidiary of Gina Rinehart’s Hancock Prospecting inked a $9m deal to earn into the mammoth ‘Mt Bevan’ magnetite iron ore project in WA (LCY 60%, HAW 40%).

While magnetite iron ore resources are lower grade than hematite in the ground, they can be concentrated into a higher-grade product. Premiums for higher-grade iron ore are increasing, partly because they generate steel with more efficiency.

The JV has also just drilled 10 holes with the objective of exploring for DSO (direct shipping ore) hematite iron ore in the southern part of the tenement. Assays are pending, HAW says.

The company is also about to process a 50,000t parcel of low-grade gold ore from the ‘Trouser Legs’ mine, which should provide some much-needed cashflow. HAW had $11.4m in the bank at the end of September.


The post Resources Top 5: More lithium projects snapped up as ‘price rally reboot’ approaches appeared first on Stockhead.








Author: Reuben Adams

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Ground Breakers: Costs rise for ASX gold miners as inflation bites

Gold miners have endured an arduous 2021 in equity markets. While cash has been easy to come by and deals … Read More
The post Ground Breakers: Costs…

Gold miners have endured an arduous 2021 in equity markets.

While cash has been easy to come by and deals are being done, most gold producers have been hit by poor sentiment as prices have struggled to break out.

Over the past year the All Ordinaries Gold Index has sagged around 20%.

Although most are still making good money, rising costs and the impact of inflation and labour challenges are also hitting miners in the hip pocket.

Metals Focus says the global average all in sustaining cost for gold miners hit its highest level since 2013 in the September quarter, rising 3.6% quarter on quarter to US$1123/oz.

Costs are on the rise for gold producers
Pic: Metals Focus

Australian miners were the worst off when it came to cost pressures, with costs in Australia climbing by an average of 13.1%.

Global AISC margins fell by 9% QoQ to US$667/oz, with Australia’s sliding 18%, Canada’s dropping 5% and Russia’s falling 7%.

Margins remain high historically speaking, and 94% of gold operations tracked by Metals Focus remain profitable.

“As might be expected, increasing costs and a lower gold price have squeezed margins in the September quarter,” they said.

“However it is worth noting that their margins are still substantially higher than in previous years.”

“Despite the relatively healthy margins, the lower gold price and rising costs are putting pressure on higher cost operators,” Metals Focus said.

“While the proportion of output that is profitable remains high at 94%, it has fallen from 98% in Q2.21. A number of operations and projects are already under strategic review with regards to increasing costs.”

Costs are up for goldies for the fourth straight quarter
A few more gold miners are touching the margins. Pic: Metals Focus

“If cost inflation persists and margins diminish even further it is likely that development project approvals will be delayed and also possible that the highest cost production of more marginal producers could potentially be closed.”

Although global average head grades rose 0.5% (5% in Australia), inflationary pressures including crude oil prices, rising salaries amid Covid restrictions, labour shortages and turnover, and the cost of equipment due to supply chain issues drove up operating costs for the fourth straight quarter.

Markets reacted badly this morning to news of the spread of the omicron coronavirus variant around the world, with materials sliding 1.19% this morning.

Chalice soars on new Julimar discovery

Market darling is a phrase that doesn’t quite cut it with Chalice Mining (ASX:CHN), which is up 60 times over since making the Gonneville nickel-copper-PGE discovery 70km north of Perth early last year.

Shares jumped more than 4% this morning after Chalice announced another discovery at Julimar, where last month it declared Gonneville the world’s biggest nickel sulphide discovery in 20 years and Australia’s first major platinum group elements resource.

The new mineralised intrusion is an ultramafic unit to the west of Gonneville, separated by around 70m of metasediments.

Located immediately south of the 6.5km Hartog anomaly, Chalice struck 3m at 2g/t palladium, 0.3g/t platinum, 0.6% nickel, 0.5% copper and 0.05% cobalt for a 1.7% nickel equivalent from 68m in one hole.

The second mineralised intercept struck 2m at 1.8g/t Pd, 0.2g/t Pt, 0.6% Ni, 0.5% Cu and 0.06% Co for a 1.9%NiEq from 139.2m.

The discovery did not show up on EM, “highlighting the potential for further blind discoveries” according to Chalice.

While Chalice has already drilled around 180,000m at Julimar, part of its value proposition is the idea that more will be found with the Gonneville resource accounting for just 7% of the 26km strike of the Julimar complex.

It has submitted a conservation management plan to get at the Hartog target, which will be a bit more thorny because unlike previous drilling which has been located on private farmland, Hartog lies beneath the Julimar State Forest.

Chalice says its CMP for drilling the Hartog-Baudin targets is sitting with the WA Government and it expects approvals shortly.

Chalice Mining share price today:

 

The post Ground Breakers: Costs rise for ASX gold miners as inflation bites appeared first on Stockhead.




Author: Josh Chiat

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QMines tops the class with second resource update just a few months after listing

Special Report: In just the six short months since making its debut on the ASX, QMines has delivered its second … Read More
The post QMines tops the…

In just the six short months since making its debut on the ASX, QMines has delivered its second resource estimate for the Mt Chalmers copper-gold project, which is 38% higher than the previous estimate and largely in the higher confidence measured and indicated categories.

QMines (ASX:QML) has delivered an updated resource for its flagship Mt Chalmers project in Queensland of 5.8 million tonnes at 1.7% for 101,000 tonnes of contained copper equivalent, which includes for the first time measured and indicated resources.

Significantly, 78% of the updated resource falls into the higher confidence measured and indicated categories. This is important because it gives an explorer sufficient information on geology and grade continuity to support mine planning and allows the definition of a reserve.

The updated resource is not far off the 120,000 tonnes that respected Australian investment firm Shaw and Partners forecast for the latest resource upgrade in a research note in early October.

Shaw and Partners, however, anticipated the updated resource would still be 100% inferred. This attracted an increased 72c price target from the investment firm which is a nearly 90% premium to the 38c share price QMines is trading at currently.

QMines share price chart (ASX:QML)


 

So the fact that such a large chunk of the resource is in the measured and indicated categories is a big leap in terms of confidence in the resource and should be a positive signal to the market of QMines’ ability to over-deliver against the target.

“As the company only listed in May 2021, it is a fantastic achievement to be delivering a resource upgrade for our shareholders in such a short period of time,” executive chairman Andrew Sparke said.

“It is very pleasing to see that the upgraded resource has substantially grown in both size and confidence level, with the measured and indicated categories now comprising 78% of the overall resource.”

Offering further exploration upside, Sparke says QMines has identified several volcanic-hosted massive sulphide (VHMS) prospects outside the known resource, which bodes well for further resource upgrades and the potential for future development.

A world class mine in the making

Mt Chalmers is already considered one of the world’s highest-grade gold-rich VHMS systems.

QMines has previously demonstrated the significant size potential and high-grade nature of the deposit, with recent peak grades of from a 15-hole, 2,182m diamond drilling program including 5.3% copper, 11.75 grams per tonne (g/t) gold, 243g/t silver, 33% zinc and 19% lead.

Those results, which were reported just last week, follow close on the heels of ‘bonanza’ grade copper, gold, silver, lead and zinc intercepts announced in October.

A major 30,000m drilling program continues unabated, with a third resource upgrade planned for the first half of 2022.

QMines

 

This article was developed in collaboration with QMines, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post QMines tops the class with second resource update just a few months after listing appeared first on Stockhead.






Author: Special Report

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Miramar finds ‘very large’ gold footprint at Glandore project

Special Report: Miramar has outlined shallow supergene gold anomalism over almost 5 kilometres of strike and across multiple targets at … Read More
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Miramar has outlined shallow supergene gold anomalism over almost 5 kilometres of strike and across multiple targets at its Glandore project in WA.

Multiple holes from the lake aircore drilling across the expanded Glandore East footprint returned and/or ended in results >0.25 g/t gold including hole GDAC037 which intersected 6m at 0.62 g/t from 12m and ended in 2m at 1.04 g/t.

Hole GDAC061 intersected 4m at 0.46 g/t and 4m at 0.61 g/t – and is approximately 400m south of historical aircore holes which intersected 6m at 1.33 g/t and 9m at 1.10 g/t (EOH).

The Glandore East footprint now extends for over 3km towards historic gold workings and remains open.

Follow up drilling planned in the new year

Miramar Resources’ (ASX:M2R) executive chairman Allan Kelly, said the recent lake drilling had identified a very substantial gold system at Glandore and greatly increased the potential for the discovery of gold mineralisation including that like the nearby Majestic and Trojan deposits.

“Our first pass lake drilling has outlined coherent supergene gold anomalism within multiple targets over almost five kilometres of strike which is a considerable proportion of the entire project area,” he said.

Miramar Resources
Glandore Project showing recent drilling and historical holes.

“Today’s results indicate the presence for multiple NE-trending mineralised structures within the granodiorite pluton extending over a significant strike length, along with coherent gold mineralisation across several other targets which will need to be followed up early in the new year.

“Gold mineralisation at Majestic and Trojan is also hosted in NE-striking structures within granitic intrusions, so our recent results indicate significant potential for a similar discovery at Glandore.”

The company will now plan for follow-up aircore drilling in the new year, and then plan for diamond drilling.

 


 

 

This article was developed in collaboration with Miramar Resources Limited, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post Miramar finds ‘very large’ gold footprint at Glandore project appeared first on Stockhead.



Author: Special Report

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