Resources Top 5: OzAurum lifts off on discovery of new high-grade gold target

OzAurum’s high-grade drill hits at the Mulgabbie North project have identified a new zone that outlines its potential to host significant mineralisation.

OzAurum has led the way after drilling at its Mulgabbie North project identified a new high-grade zone. Pic: Getty Images

• OzAurum drilling hits up to 4m at 14.17g/t gold at Mulgabbie North

• Alkane Resources becomes substantial shareholder in Medallion Metals

• New Murchison unveils feasibility study for near-term gold from Crown Prince

Your standout small cap resources stocks for Monday, February 3, 2025.

OzAurum Resources (ASX:OZM)

While the broader market was in free fall today thanks to President Trump following up on threats to impose tariffs, there were still some gems up for grabs and punters were quick to zoom in on OzAurum’s high-grade gold drilling results.

The company’s aircore drilling at Mulgabbie North returned 4m composite results such as 20m at 3.57g/t gold from surface including 4m at 10.21g/t and 10m at 6.59g/t gold from 12m including 4m at 14.17g/t.

Several holes also ended in gold mineralisation while oxidised former pyrite and arsenopyrite mineralisation was observed in drill chips from multiple drill holes. That indicates there’s the potential to find gold mineralisation at depth.

The drilling defined a mineralised zone with widths from 25m to over 75m and a strike of over 400m. This remains open at depth and along strike.

Company managing director Andrew Pumphrey said the discovery validated its exploration strategy and underscored the project’s potential in one of WA’s prospective gold corridors.

The market certainly agreed with shares in OZM soaring 66.67% with more than 4.48 million shares changing hands.

Medallion Metals (ASX:MM8)

Capital raisings aren’t typically part of the recipe for improving share prices, but that bit of conventional wisdom falls apart when a major player increases its already significant stake in a smaller company – just like Alkane Resources did with Medallion Metals today.

Alkane pumped in >$1m in MM8 under the latter’s $6.5m raising at 10c per share, taking its interest in the junior up to 6.3%, which likely led the market to follow in its footsteps.

Proceeds from the placement will be used to complete a bankable feasibility study, as well as progressing permitting related activities for the development of MM8’s Ravensthorpe gold project, debt financing and offtake discussions, extensional and infill drilling, updated mineral resource estimates and general working capital.

Ravensthorpe has a resource of 1.6Moz gold and an exclusivity deed with IGO to repurpose its concentrator from the mature Forrestania nickel mines, which shut due to low prices and falling reserves.

A study in December had forecast the project could produce 336,000oz of gold and 13,000t of copper over an initial 5.5-year mine life at all-in sustaining costs of $1845/oz with the copper credit.

New Murchison Gold (ASX:NMG)

New Murchison Gold unveiled a feasibility study for its Crown Prince gold deposit in WA which outlined pre-tax cashflow of $226m over 30 months at current spot prices.

Capex to start production is also a low $5.4m thanks to the company’s ore purchase agreement with Westgold Resources (ASX:WGX) with NMG also expecting to use its substantial tax loss position to offset tax liabilities on initial pre-tax profits.

Under the study, the company will mine and truck 140,000oz of contained gold to WGX over 30 months for processing.

Mining is expected to start in June 2025 with first ore sales scheduled in August 2025.

New Frontier Minerals (ASX:NFM) and Peak Minerals (ASX:PUA)

Up on no news

Both New Frontier Minerals and Peak Minerals are up today on no news.

NFM is acquiring the Harts Range niobium, uranium and heavy rare earths project in the Northern Territory where assaying of rock chips collected from outcropping pegmatites during the company’s first reconnaissance trip returned up to 29.8% niobium, 14.04% uranium, 1.63% dysprosium, 0.22% terbium and 23.02% tantalum.

In its December 2024 quarter report, it added that a second trip revealed more key targets including a 500m long pegmatite at the Big Jay prospect.

The company also identified the Cusp North and Bobs North areas that have demonstrated potential for base and precious metal mineralisation.

Meanwhile, PUA noted in its December 2024 quarterly report that it had started a low-cost, high-impact auger drilling program to test initial high-priority targets at the Minta rutile project in Cameroon, West Africa, which it had recently acquired an 80% stake in.

Grab sampling conducted across different areas across the priority zones has identified visible rutile in both alluvial and residual soils from surface.

Initial samples from drilling have been submitted to the laboratory with assay results expected Q1 2025.

The company had also acquired an 80% interest in the Kitongo and Lolo uranium projects in Cameroon under the same transaction.

At Stockhead, we tell it like it is. While OzAurum is a Stockhead advertiser, it did not sponsor this article.

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: OzAurum lifts off on discovery of new high-grade gold target