Resources Top 5: Tasty gold-copper potential with a 3.3Mt LCE resource cherry on top

Siren Gold is up after extending antimony-gold mineralisation at Auld Creek and Mandrake Resources unveils a 3.3Mt maiden inferred resource. Here's our resources wrap.

Pic: Getty Images

• Mandrake releases 3.3Mt LCE resource at the Utah lithium project 

• Siren Gold extends gold-antimony mineralisation at Auld Creek

• A technical review at Alicanto's Greater Falun project finds compelling gold, copper and silver targets 

Here are the biggest small cap resources winners in morning trade, Tuesday, October 21. Prices accurate at time of writing.

Siren Gold (ASX:SNG)

New Zealand goldie SNG is off to the races after its ionic leach soil sampling program extended gold and antimony mineralisation at the Auld Creek prospect for at least 1.5km.

SNG believes Auld Creek has what it takes to grow further and enhance the resource on the Reefton project, which currently stands at 558,000oz at 4.72g/t gold equivalent.

The Reefton project is situated between the Globe Progress mine, which historically produced 418,000oz at 12.2g/t gold, and the Crushington group of mines that generated 515,000oz at 16.3g/t gold.

Auld Creek, with a resource of 105,000oz at 3.84g/t gold and 14,500t at 1.71% antimony for a gold equivalent of 210,000oz at 7.69g/t gold, is now Siren’s largest resource at Reefton and has the potential to increase significantly as exploration proceeds.

“We look forward to unlocking further value at Auld Creek and growing our resource to a million ounces or more at Reefton,” SNG managing director and CEO Victor Rajasooriar said.

Mandrake Resources (ASX:MAN)

Several recent developments within the lithium space have boosted investor sentiment for the battery metal, including Rio’s proposed acquisition of Arcadium Lithium for $US6.7bn and the closure of a massive Chinese lepidolite mine owned by the world’s largest battery maker.

Although lithium prices remain under pressure, China’s stimulus efforts have started to pave the way for potential upside with the West keen to diversify its battery supply chains away from the Middle Kingdom, which could bode well for Australian producers.

These difficult market conditions haven’t stopped some lithium juniors from kicking on and proving up their resources, as seen today with the release of MAN’s maiden inferred 3.3Mt lithium carbonate equivalent (LCE) resource at the Utah lithium project.

MAN said this milestone confirms the company’s position as a top tier US lithium asset, ideally positioned in the Paradox Basin with well access, abundant existing infrastructure, access to strong local workforce and an established regulatory environment.

“Mandrake will now proceed with well re-entry operations, which will provide potential tonnage and grade upside to the resource,” managing director James Allchurch said.

“Two leading DLE providers, ElectraLith and Electroflow, will also be processing Mandrake brine at their respective pilot processing plants in the near term.

“We also expect to deliver a further resource upgrade (indicated) and complete a scoping study in H1 2025 underpinned by forthcoming re-entries.”

The inferred resource of 3.3Mt LCE is based solely on existing data, that is, brines derived from well casing perforations originally designed to produce oil and gas.

Alicanto Minerals (ASX:AQI)

A technical review carried out across AQI’s Greater Falun asset has identified compelling copper, gold and silver targets that show there is huge exploration potential still yet to be discovered.

The targets include Wolf Mountain, Stone Lake, Swamp Thing, Birch Mountain, Lustebo and Strömbo, where previous rock chip results returned 11.9 per cent copper, 7.2g/t gold and 185g/t silver.

Alicanto is in active discussions with potential strategic partners for Falun and the Greater Falun project with the aim of progressing systematic exploration in this highly prospective region.

“Given that the mineral belts which host the rich Falun mine extend through this wider area, and that mapping and previous sampling results confirm the presence of mineralisation in this expanded acreage, the exploration potential is compelling,” AQI interim exec chairman Ray Shorrocks said.

“We will continue to refine these targets as we discuss strategic partnership opportunities with groups which also recognise this exploration potential. At the same time, we are assessing a number of possible project acquisitions globally.”

Terramin Australia (ASX:TZN)

(Up on no news)

Earlier this month TZN received confirmation that the Algerian government had completed the acquisition of all the land covering the entire footprint of the Tala Hamza mining permit.

Tala Hamza contains 53Mt at 6.6 per cent zinc, plus lead for 3.5Mt of contained metal.

A 2018 study, which might be well out of date, envisages a $450m start-up cost. Operating costs would be in the second quartile globally (first quartile being the cheapest).

The accomplishment earlier this month means Western Mediterranean Zinc Spa (the operator of Tala Hamza) now has full and free access to the entire mining permit area to begin immediate construction works for the project.

The total land area of 234ha (2.34sq km) will support all the project mining and processing operations as well as direct ramp access to a highway that leads directly to the Port of Bejaia.

Midas Minerals (ASX:MM1)

(Up on no news)

MM1 identified more gold-copper targets at its Challa project in WA’s Goldfields region at the beginning of October following further sampling at the Killarney prospect.

Recent sample results include up to 5.36g/t gold from a previously unsampled gossan, while prior rock chip sampling returned values up to 6.1g/t gold from ferruginous chloritic schist and up to 4.9 per cent copper from gabbro.

MM1 also increased its overall granted tenure by 30per cent to 676sq km after three years of application process.

“The granting of E58/597 provides access to a highly prospective section of the major Wyemandoo shear zone,” MM1 managing director Mark Calderwood said.

“Midas will continue to define and refine drill targets within the Challa project.”

Originally published as Resources Top 5: Tasty gold-copper potential with a 3.3Mt LCE resource cherry on top