Resources Top 5: Cavalier Resources inks $17.5m as gold production approaches

Cavalier Resources marks another milestone at the Crawford gold project with the signing a non-binding term sheet for a $17.5m stream facility.

Cavalier is close to taking the plunge and finding a production pathway for its Crawford gold project. Pic: Getty Images

• Cavalier Resources nears production at Crawford gold project with major funding boost 

• PVW Resources confirms rare earths in maiden drilling at Capão Bonito

• Pacgold defines 12km geochemical gold-arsenic-antimony anomaly at Alice River 

Your standout small cap resources stocks for Thursday, February 20, 2025.

Cavalier Resources (ASX:CVR)

Cavalier is getting closer to a production pathway for its Crawford gold project after signing a non-binding stream financing term sheet valued at US$11m (A($17.5m) with precious metals streaming fund Raptor Capital International.

Both parties now have 60 days to conduct due diligence during which time they may enter into a binding agreement should conditions precedent be met.

The funding will be used by the company to advance the Stage 1 Crawford open pit into production along with near-mine exploration drilling to upgrade further portions of the current resource to ore reserves.

Using a very conservative $2900/oz gold price, Stage 1 of the project is expected to generate undiscounted cash flow of $17.2m and deliver net present value and internal rate of return – both measures of profitability – of $14.8m and 122.9% respectively.

At the $4500/oz mark, which is just below the current price of $4655/oz, this would deliver cash flow of $53.2m as well as outstanding NPV of $48.4m and IRR of 447.1%.

“The signing of this non-binding US$11 million term sheet with an international gold streaming fund in Raptor marks yet another significant milestone as we enter into the next exciting phase for the company and our loyal shareholder base,” chief executive officer Daniel Tuffin said.

“Raptor has completed an initial technical review prior to the signing of this non-binding term sheet, which will assist in streamlining the upcoming due diligence process.

“This non-binding term sheet reinforces the development strategy of the Stage 1 oxide pit, the broader Crawford gold project area and the planned onsite processing pathway. Should funding be secured it would greatly reduce the need for significant shareholder dilution through equity capital raisings.”

Shares in the company saw big gains last week as well.

PVW Resources (ASX:PVW)

Maiden drilling at PVW’s Capão Bonito project in Brazil has confirmed the presence of rare earths with 29 of 32 holes analysed to date returning total rare earth oxide concentrations exceeding 500 parts per million.

Two areas, the northern and southern anomalies that each extend for over 4km of strike each currently host most of the significant results. This leaves a large area between the two anomalies where assays are pending from at least 10 holes.

The drill results confirms that mineralisation is both thick and shallow with notable examples such as 15m at 1187ppm TREO from surface and ending in 1534ppm TREO and 12.3m at 1405ppm TREO from surface that ends in 1519ppm TREO.

Importantly, the full extent of the system remains undefined, with further drilling planned to expand known mineralisation.

Select samples will also be submitted for ammonium sulphate solution leaching to confirm if mineralisation at Capão Bonito is ionic adsorption clay style and assess REE recovery potential.

Zinc of Ireland (ASX:ZMI)

(Up on no news)

While Zinc of Ireland had no news out, it did announce yesterday that it reached an agreement to acquire up to 80% in EL 52/3979 in WA’s Gascoyne region that hosts a large drill-ready SEDEX/IOCG anomaly.

The 75km2 Mt Clere project sits within the Edmund Basin on Mt Clere Station ~190km north-northwest of Meekatharra.

It hosts a large 1km wide geophysical anomaly with strong magnetic and gravity signatures that remains untested by drilling save a single hole drilled by BHP in the 1990s that was terminated at a depth of 56m due to drilling issues, leaving the anomaly untested.

The target lies adjacent to the Mt Clere fault, within a copper and base metal province which hosts various copper and base metal prospects and mines.

An existing Heritage Agreement is in place and drill planning is underway with a Programme of Work to be lodged imminently.

Pacgold (ASX:PGO)

The final results of a regional aircore drilling program across PGO’s Alice River gold project in QLD have uncovered a 12km gold-arsenic-antimony geochemical anomaly.

Due to the limited development of a weathered profile at Alice River, PGO believes the results are purely scratching the surface of the most leached mineralisation present in the underlying fresh rock.

The 12km open strike length is largely undrilled and demonstrates continuous and consistent mineralisation.

PGO managing director Matthew Boyes said the focus over the next month is to complete drill program planning and necessary prep work to begin drilling.

“The 2025 program will demonstrate to our shareholders the size and future growth potential which I believe exists at the Alice River project this year,” he added.

Alice River comprises >30km of strike which consists of prospective gold targets within 377km2 of granted exploration permits and eight granted mining leases in northern QLD, close to Cairns.

PGO was the first explorer in 20 years to drill along the Alice River fault structure with less than 5% of total strike drill tested to date.

Peak Minerals (ASX:PUA)

Peak Minerals' first systematic residual soil rutile reconnaissance exploration program has demonstrated the broad scale of its Minta project in Cameroon.

The program is now over 90% complete with 168 hand auger drill holes completed out of a total of 181.

Randomly selected samples from reconnaissance hand auger holes in residual soils have returned visual indications of heavy minerals across the entire length of the 55km by 35km Minta and 12km by 12km Minta East deposits.

Results from samples submitted to the second laboratory are expected to be received in the next four to six weeks.

Additionally, mapping has identified several potential areas of alluvial-style mineralisation.

The alluvial reconnaissance exploration will begin next week.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as Resources Top 5: Cavalier Resources inks $17.5m as gold production approaches