KEY POINTS:
- Western Mines (ASX:WMG) drills into +42% nickel veinlets indicating ‘possible source at depth’
- NewPeak (ASX:NPM) completes a $300,000 share placement to Gerhard Redelinghuys, founder of Bowen Coking Coal (ASX:BCB)
- Brazil focused OzAurum (ASX:OZM) is drilling below weathered 1m-long spodumene crystals into fresh stuff, and results are pending
Here are the biggest small cap resources winners in morning trade, Wednesday, April 24.
WESTERN MINES GROUP (ASX:WMG)
Western Mines (ASX:WMG) says a ~750m (and counting) deep drill hole hit ~700m of rock containing “disseminated nickel sulphide mineralisation and numerous sets of remobilised nickel sulphide veinlets” at the Mulga Tank project in WA.
These cute veinlets — confirmed by spot pXRF up to 42.2% nickel — appear oblique to the drill core “indicating a possible source at depth”.
Exciting times for the small explorer.
The first 600m of core has been sampled and submitted to the lab for assay.
“Sulphide mineralisation is encountered nearly everywhere we drill, and this hole is continuing that trend with cumulatively around ~300m of disseminated and blebby sulphide mineralisation observed so far, similar to the other deep diamond holes drilled last year,” WMG boss Caedmon Marriot says.
“The hole has already encountered numerous remobilised sulphide veinlets.
“These appear oblique to the drill core, producing some nice longer intersections of the sulphide filled veins and in places occur as sets of veins.
“Measurements suggest a possible source at depth below the current drilling.”
Exploration results over the past year show an extensive nickel sulphide mineral system, it says.
This drilling of deeper targets is running side-by-side with a program to prove up a shallower 350 million-2.2 billion tonne exploration target (ore grade 0.24-0.35% nickel, plus cobalt credits).
It’s another bite at the gains cherry for WMG, which rocketed to ~90c/sh April last year after reporting nickel paydirt at Mulga Tank.
The find even drew early comparisons to BHP’s enormous Mt Keith, the king of low-grade sulphide deposits.
But euphoria and nickel prices have since subsided, with WMG now sitting at ~36c/sh after making a strong double digit gain early trade today.
OZAURUM RESOURCES (ASX:OZM)
OZM is up substantially over the past week, on low to average volume, and on no news.
Its last announcement of note came mid-month when it started drilling the Boca Rica lithium project in Brazil.
Chosen after the company reviewed and visited +100 projects in the State of Minas Geras, Boca Rica includes “extensive LCT pegmatite swarms” over a 1.7km stretch.
This includes a bunch of 1m long spodumene crystals (usually grading 5-7% lithium). OZM is drilling below the weathered zone into fresh spod, and results are pending.
The company also continues to run the ruler over additional lithium, niobium and rare earths projects in Brazil.
NEWPEAK METALS (ASX:NPM)
The Canada focussed uranium and rare earths explorer completed a $300,000 share placement at 1.5c/sh to Gerhard Redelinghuys, founder of former small cap success story Bowen Coking Coal (ASX:BCB).
Redelinghuys steered Bowen Coking Coal from a small explorer to a multi-mine producer listed in the ASX 300.
He stepped back from his role as BCB MD in February 2023. The now-troubled producer is currently down 87% from its August 2022 peak of 40c/sh.
NPM expects to have binding commitments for another $200,000 via placement shortly. It will also undertake a Rights Issue to raise not less than $500,000 at the same issue price as the Placement shares.
The ~$1m cash injection will be used to explore its recently acquired/soon-to-be acquired Canadian properties, for new acquisitions, and for general working capital.
The post Resources Top 3: Company-maker cornerstones uranium-REE play, nickel-hunter dials in to ‘possible source at depth’ appeared first on Stockhead.
