Veteran mining columnist Barry FitzGerald loves fielding a maiden mineral resource estimate. And six highlighted by Bell Potter have caught his eye.
More than 600 junior explorers have now filed their March quarterly reports. Garimpeiro does not pretend to have read all of them.
And why would he when 400 or so of them would have been a waste of time?
But there were some gems, and a notable theme that emerged – the step up in the reporting of maiden mineral resource estimates (MRE).
MREs are an indication that exploration has not been a waste of time, as the company has actually created an asset.
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The reporting of an MRE does not necessarily mean that there will be cashflow from a mine development one day. What it does mean is that the company is having success with the drill bit and is on the exploration-development-production pathway.
Again, no guarantees that the ultimate goal of owning a profitable mine – or of getting taken over – will be achieved.
But at least the journey has begun.
The research desk at capital market company Bell Potter have sifted through the March quarterlies in its universe of stocks and come up with a list of six whose exploration programs have led to new MREs, or pending updates of MREs.
If only Garimpeiro was so industrious.
GREEN TECHNOLOGY METALS (ASX:GT1)
Trading Monday morning at 67c. Bell Potter (BP) valuation: $1.38.
A busy March quarter for the lithium explorer, with a maiden resource of 4.5Mt grading 1.01 per cent lithium at its Root project in Ontario. It is the start of the story at Root.
The resource estimate carries GT1’s Ontario resource base to 14.4Mt at 1.03 per cent across Root and the flagship Seymour project. BP said to watch out for news of a preliminary economic assessment into an integrated development.
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DELTA LITHIUM (ASX:DLI)
Trading Monday morning at 57c. BP valuation: 85c.
This one was mentioned last week by Garimpeiro in response to chatter that Chris Ellison’s Mineral Resources (ASX:MIN) was buying up shares. Is it as takeover target? Time will tell. BP noted five drill rigs were working on upgrading the mineral resource estimate at the Mt Ida project, and that the early stage Yinnetharra project was generating some impressive results.
DREADNOUGHT (ASX:DRE)
Trading Monday morning at 5.3c. BP valuation: 19c.
Another one that has a lot on the go. It has been kicking goals on the rare earths front in the Gascoyne region at its Mangaroon project.
BP also noted the declaration of a small but high-grade MRE for the Metzke’s Find prospect in the central Yilgarn.
It views the estimate as a starting point for additional discoveries in the region.
RUMBLE (ASX:RTR)
Trading Monday morning at 19.5c. BP valuation: 60c.
Another one mentioned by Garimpeiro recently following its maiden MRE estimate for its Earaheedy zinc/lead project. It came in at 94Mt at 3.1 per cent combined zinc/lead. Garimpeiro reckons it’s on its way to becoming a world-scale discovery.
BP was more circumspect but noted less than 35 per cent of the 45km prospective zone has been drill tested. Because it is zinc/lead, BP reckons its “value is likely to be recognised later in the project development as study results are reported, or as larger miners take an interest”.
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DEEP YELLOW (ASX:DYL)
Trading Monday morning at 61.5c. BP valuation: $1.05.
Drilling by the uranium explorer/developer is under way at its key projects – Tumas in Namibia, and Mulga Rock in WA.
BP sees the company as being a long-term play on the uranium market, with its attractive portfolio of advanced assets.
SANTANA (ASX:SMI)
Trading Monday morning at 65c. BP valuation: $1.45.
Garimpeiro confesses he has heard of the band but not the company. It has a 2.9Moz resource across four deposits at its Bendigo-Ophir gold project in New Zealand. BP said to watch out for an updated resource estimate in the December half. BP was a joint lead manager to a recent $15.5 million raising at 62.5c a share.
This content first appeared on stockhead.com.au
The views, information, or opinions expressed in this article are solely those of the columnist and do not represent the views of Stockhead.
Stockhead has not provided, endorsed or otherwise assumed responsibility for any financial product advice contained in this article.
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