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Resources Top 5: Niobium punters send Aldoro 250pc higher in a month

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Gamblers at Aldoro snapped up new samples before results came in. Photo: Getty Images

  • Aldoro’s monthly earnings rise by $250 billion, boosted by niobium investment

  • New Frontier Minerals, Octava Minerals and KGL Resources rise on no news

  • Southern Cross Gold discovers more gold at Sunday Creek, values ​​it at nearly $700 million

Your standout small-cap resource stocks for Monday, December 9, 2024.

ALDORO RESOURCES (ASX:ARN)

(No news)

Investors continued to rush to snap up shares of Aldoro for nearly a week, confident that surface sampling at the company’s Kameelburg niobium project in Namibia will yield a major niobium discovery.

The commodity is mainly used in high-strength and lightweight steel alloys and has a high concentration, with a mine in the Araxá region of Brazil owned by CBMM accounting for more than 80% of global mine production.

But with WA1 Resources (ASX:WA1) discovering the Luni niobium deposit in our own backyard, it has caught the attention of investors. Since the discovery in 2022, the Western Arunta pioneer’s share price has risen by more than 5,000%, hinting at investor enthusiasm for the specialty metal.

Another ASX explorer, Encounter Resources (ASX:ENR), is looking for a source of the commodity close to Luni at its Aileron project, while Malawi-focused Globe Metals & Mining (ASX:GBE) has also shown investment potential.

Fort Carmel returned a 262-meter sample line last week with an average Nb2O5 content of more than 0.5%, including 94 meters of samples with an average Nb2O5 content of 0.93.

This has investors looking forward to the results of diamond drilling in the Fort Carmel carbonates. A seven-hole drilling program will start in late November, targeting depths of 200-400 meters.

ARN was up 24% on Monday but is up more than 250% in the past month, giving it a market value of about $38 million.

NEW FRONTIER MINERALS (ASX:NFM)

(No news)

New Frontier Minerals has dropped the old Castillo Copper name and is back in business following the sale of its Cangai copper project in Queensland to Infinity Mining (ASX:IMI).

Although the exploration company, chaired by Gerrard (Ged) Hall, has shifted its focus to its recently acquired Harts Range project, about 140 kilometres from Alice Springs in the Northern Territory, it’s not really that different.

The latest findings from the second reconnaissance trip have identified several key targets, including a 500-meter-long pegmatite in the Big Jay mining area.

Previously, the company’s field team conducted a preliminary survey and collected rock chips with a grade of 29.8% niobium pentoxide, 14.04% uranium oxide, 1.63% dysprosium oxide, 0.22% terbium oxide and 23.02% tantalum pentoxide.

Thirteen samples collected during the recent field trip have been sent to the laboratory awaiting results, with the next exploration milestone being a helicopter radiometric and magnetic survey in January.

Big Jay is the latest in a string of potential mining areas listed by NFM’s geographic area managers, along with Bobs, Bobs West, Cusp and Dune. Hall said Friday the company is committed to “accelerating development efforts and identifying potential targets” in the region.

KGL RESOURCES (ASX:KGL)

(No news)

KGL Resources was silent on Monday, but if you want to know why investors are so interested in this small copper miner, look no further than Barry FitzGerald’s brilliant summary of the situation at Stockhead on Sunday.

Read: Barry Fitzgerald: This potential copper miner can’t stay under the radar forever

Here is what a veteran Australian resource writing voice said about KGL in his Sunday Garimpeiro column.

“The Jerworth Project can sometimes be overlooked because it’s so remote. From Alice Springs, drive north on the Stuart Highway for 380 kilometres, turn left onto the Plenty Highway and you’ll be at the main entrance.

That being said, Zevis is no mystery to Indonesia’s Salim family, the richest family in Indonesia with a net worth of more than $10 billion based on Indomie instant noodles and all other assets in Indonesian conglomerates such as mining, energy, banking, real estate, etc.

The family, led by Anthoni Salim, holds a 35% stake in KGL and has supported the company in raising funds over the years.

The company has a keen interest in Australia’s mining sector, having bought the Mt Pleasant coal mine from Rio Tinto for $224 million in 2016 and earlier this year snapped up South Australian copper developer Rex Minerals for $393 million.

Rex’s move shows it is particularly fond of copper’s long-term prospects, as its Hillside project, which has cost $850 million to develop, could produce 42,000 tonnes of copper and 30,000 ounces of gold per year.

KGL’s Jervois project is smaller in scale. But early studies suggest it could produce 30,000 tonnes of copper per year, as well as silver and gold, so it’s not far off the mark.

With an estimated resource of 27.45 million tonnes grading 1.87% copper for 513,400 tonnes of contained copper, the mine is one of the largest and highest-grade Australian projects held by junior and mid-cap ASX companies.”

Despite growing optimism about ASX copper stocks, which are still down about 30% so far this year (up more than 20% on Monday), an updated feasibility study is said to be underway and drilling is underway to extend the future mine life of the Jervois asset.

SOUTHERN CROSS GOLD (ASX:SXG) and OCTAVA MINERALS (ASX:OCT)

Brought together by a shared love of antimony, only SXG is in the news today.

The roughly $700 million exploration company (no resources, but likely to increase) is on the rise again with its gold discovery at its Sunday Creek project in Victoria.

Sure, a 186m (uncut) gold run intersected 8 different veins at grades up to 8.8g/t, but the question is how it all fits together when it moves from the exploration phase to a developable phase.

there were smaller intersections including 2541.9g/t at 0.5m (over 0.5m) and 4880g/t at 0.3m (over 0.3m) and the laboratory recently completed the results of 14 holes for analysis.

About 60,000 metres of drilling is planned by the third quarter of 2025. One big advantage for SXG is the presence of antimony, like at the nearby Costerfield mine owned by Mandalay Gold. The explorer said the value of the critical metal, which it believes accounts for about 20 per cent of the recoverable in-situ value, has risen sharply following an export ban imposed last week by top producer China.

Historically, Sunday Creek ore was mined by the old folks for antimony and processed on site and at Costerfield.

Meanwhile, Octava had no news to report, but shares surged 25% to a year-to-date high of 15 cents.

OCT last week launched exploration drilling at its Yallalong project in Western Australia’s central west, at a historic site it hopes to name the Discovery prospect (possibly a reference to Daft Punk), having previously discovered antimony at a depth of 7 metres at 3.27.

Originally published in Resources Top Five: Niobium speculators drive Aldoro shares up $250 in a month

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