- PhosCo up +60% as Tunisia approves key phosphate permit
- North Stawell Minerals plans 2025 drill campaign in Victoria
- NGX, Peregrine and Kuniko among no news gains
Your standout small cap resources stocks for Tuesday, November 26.
PhosCo (ASX:PHO)
Any ill will over the Socceroos’ stoic victory over Tunisia in the 2022 Qatar World Cup is well in the past, as ASX-listed PhosCo roared to life after announcing the approval of a key permit to open a new phosphate basin in north Africa.
Described as a ‘major breakthrough’, the approval by Tunisia’s Consultative Committee of Mines will see PhosCo granted 100% of the Gassaat exploration permit.
Critically, that includes the Chaketma resource – 146Mt at 20.6% P2O5 – alongside targets to the north.
On top of that PhosCo, which says the approval of its nearby Sekarna permit was the first issued in full to a foreign investor, has also signed a non-binding MoU with the Tunisian Ministry of Industry, Mines and Energy and European Bank for Reconstruction and Development.
The plan is to collaborate on the Northern Phosphate Basin’s exploration and development, look into processing to convert radioactive phosphogypsum into inert materials, support small and medium enterprises to provide regional benefits in the basin and work with the EBRD on financing.
“We are deeply honoured by the trust placed in us by the Tunisian government, as evidenced by the approval of PhosCo’s Gassaat permit application and the signing of the MOU with PhosCo and EBRD. This marks a significant milestone in advancing Gassaat and Tunisia’s Northern Phosphate Basin,” PhosCo MD Taz Aldaoud said.
“The Gassaat permit is pivotal in realising our vision for a regional phosphate processing hub.
“The MOU formalises our excellent relationship with EBRD and the Tunisian government, establishing a collaborative framework to support the region’s development. We’re already seeing the immediate benefits of this partnership through meaningful cooperation between all parties involved.”
At US$152.50/t, phosphate rock out of nearby Morocco is trading around half of its highs of ~US$350/t seen in late 2023, but double levels seen early in the pandemic.
The market is extraordinarily concentrated, with China, Morocco, Saudi Arabia and Russia controlling more than 75% of the export trade for the ammonium phosphate fertiliser market according to S&P.
“We’re particularly mindful of the critical role phosphate plays in addressing global food security concerns. This project not only aligns with that crucial need but also emphasises our commitment to positive community impact,” Aldaoud said.
“Local support and meaningful community participation are cornerstone elements of our strategy to develop Tunisia’s Northern Phosphate Basin.
“This collaborative effort, backed by the government and EBRD, underscores our shared commitment to responsible development that benefits the local community, the region, and contributes to global food security. We’re excited about the potential this project holds and are committed to its successful and sustainable implementation.”
It’s not all sunshine and rainbows for PHO. PhosCo’s initial application for the Amoud permit, next to the multi-billion tonne Sra Ouertane project was not successful.
PHO is also reviewing its investment in 51% owned Chaketma Phosphates SA, which was unsuccessful in a permit application that seems to overlap the successful Gassaat.
“In addition to the significant breakthrough of Gassaat’s approval (100% PHO), PhosCo is also still owed damages, costs and interest by Tunisian Mining Services (TMS) amounting to TND14M (A$6.7M),” PHO added.
“The company reserves the right to use the means necessary to execute the Arbitral Award to seek enforcement from TMS for nonpayment of these damages.”
North Stawell Minerals (ASX:NSM)
NSM has signed a contract with local driller Trimac to begin a 1500m diamond drill program in January next year at its Darlington and Wildwood prospects in Victoria.
That will test ‘priority step-out targets’ off the back of a $1.3m capital raising, testing 600m open for basalt-flank mineralisation at Wildwood and beneath open mineralisation at Darlington.
There it’s looking to establish if the shallow mineralisation mined for 2347oz at 18g/t Au by old-timers is a splay from a recently identified deeper basalt.
That’s intriguing given NSM says it’s the same geological model seen in the upper parts of the main Stawell gold mine.
“We are excited to recommence diamond drilling following a hiatus during the winter months,” NSM exec director Campbell Olsen, also CEO of Stawell manager Arete Capital Partners, said.
“We are confident that the two target areas, Wildwood and Darlington, can significantly advance both projects against a Stawell Gold Mines model with enticing exploration upside on success.
“The program aims to build on our previous three years of successful drilling programs.”
Wildwood already has a modest mineral resource of 87,000oz at 2.4g/t.
NGX (ASX:NGX), Peregrine Gold (ASX:PGD) and Kuniko (ASX:KNI)
(Up on no news)
A host of other junior explorers are lifting today with little news floating around.
NGX is stationed across southern Africa, where it has a range of energy metals interests including uranium licence applications in Namibia and a graphite project in Malawi called Malingunde.
NGX, which had a healthy $5.3 million in the bank as of the end of the September quarter, told investors last month it was looking at further ‘clean energy space’ opportunities across southern Africa to complement its portfolio.
At Tubusis in northern Namibia, NGX’s vendor has been given notice from the Namibian mining authority that it intends to grant the permit pending completion of its environmental clearance certificate.
Results from a 12-channel sampling program of its outcrop by previous owners include 3m at 1479ppm U3O8, 34m at 387ppm U3O8 and 16m at 491ppm U3O8.
The Rossingburg licence meanwhile is surrounded by major operations and development prospects like Rossing, Husab, Langer Heinrich and Etango.
Peregrine, chaired by former Azure Minerals chair Brian Thomas and led by technical director George Merhi, who spent 15+ years as exploration manager for Mark Creasy’s Creasy Group, is also up on no news.
It recently updated investors – its largest at over 11% is billionaire prospector Creasy himself – on its plans for the Newman gold project, where drilling has been undertaken for the past three years over 2000km2 of tenements not far from Capricorn Metals’ Karlawinda gold project.
Currently undertaking an entitlement offer to raise up to ~$2.5 million at 15c via a 1 for 4 share issue, the junior has been running surveys and reviewing its exploration strategy at the Tin Can and Tin Can West discoveries.
The latter included an initial hole earlier this year of 4m at 9g/t Au, with Merhi recently telling investors the company’s sights were set on “making a major >1Moz gold discovery”.
Kuniko, a spinoff a few years ago from geothermal lithium stock Vulcan Energy, which briefly went on a bonkers and highly speculative run after listing, has been mum since announcing ‘high-grade’ copper and nickel results in assays from its Ringerinke project in Norway.
The $18.5m capped explorer hit stupid levels of $2.68 shortly after listing in September 2021, but now trades for 22c, up 25.7% today but down almost a quarter YTD.
At Stockhead, we tell it like it is. While Peregrine Gold is a Stockhead advertiser, it did not sponsor this article.
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