Resources Top 5: Polymetallic discovery no Trojan horse and African Gold gains

African Gold is on a tear after discovering multi-million ounce potential and Achilles base metal project pumps surrounding ASX juniors.

Pic: Getty Images.

• African Gold on a tear with a maiden 450,000oz resource for its Blaffo Guetto prospect

• Achilles discovery no hindrance to adjacent juniors

• PVW secures $1.15m funding for REE projects in hotbed Brazil

Here are some of the biggest resources winners in early trade, Tuesday July 30, Prices correct at time of writing.

African Gold (ASX:A1G)

A maiden high-grade 450,000oz at 2.9g/t gold resource of A1G’s Blaffo Guetto prospect at the Didievi project in Cote d’Ivoire has just been announced – which is pretty impressive.

Why? Because an exploration target for Blaffo Guetto AND the project’s Pranoi prospects together were pegged for between 596,000–1.45Moz at 2.7-3g/t gold, so things are looking good to hit well into the target range once both MREs are in.

There’s some ridiculous intercepts too. Highlight drilling results from Blaffo Guetto include:

• 10m at 123g/t gold from 66m, including 2m at a staggering 613.g/t gold; and
• 17.4m at 17g/t gold from 244m including 1m at 216g/t gold.

“Excitingly, the maiden resource does not include other high-grade prospects on the Didievi project tenure, including the Kouassi and Akissi prospects to the north of Blaffo Guetto and the 11km-long Poku gold trend located to the southwest, nor the potential of further discoveries in the broader Blaffo Guetto area itself,” A1G MD Phillip Gallagher says.

“We are encouraged by the prospectivity of the Didievi project and believe that it has the potential to be a multimillion-ounce deposit.”

Shares shot up 66.7% on morning trade to 4c per share at time of writing, before returning to a 41.7% gain.

Regener8 Resources (ASX:R8R)

R8R has acquired a new tenement immediately adjacent to the high-grade polymetallic (gold-silver-zinc-lead-copper) Achilles discovery in NSW.

Outstanding drill results, including 5m at 16.9g/t gold, 1667g/t silver, 0.4% copper and 15% lead and zinc were intersected at the adjacent Achilles recently, providing more weight to R8R’s purchase of the North Achilles project area.

“Securing this tenement in a highly prospective and renowned location provides Regener8 with optionality and diversity into its portfolio,” R8R managing director Stephen Foley said.

“The Achilles discovery by AGC is extremely exciting with outstanding gold, silver, lead and zinc results and ongoing exploration from AGC and SER indicates that the potential for discoveries in the area has just begun to be realised.

“AGC have shown impressive leadership from their exploration approach through to community and stakeholder engagement.

“We hope to emulate their success across these aspects and create value for Regener8 and our stakeholders with our approach.”

Shares in the $3.5m market-capped minnow were up 27.5% on the news to 12c per share.

Strategic Energy Resources (ASX:SER)

Funnily enough, (and as hinted above) the owner of another adjacent landholding, SER, also jumped today, after receiving drilling approvals for its own tenure next door to Australian Gold and Copper's (ASX:AGC) Achilles discovery.

It’s already got a >3000m RC drill program ready to rock featuring a minimum of 25 holes that could expand up to 40, just 7km north of the AGC discovery.

AGC has shot up >300% in the past six months, with wide super high-grade base metals mineralisation across a 5km-long strike that’s growing at pace – and SER is riding the wave.

Shares in SER jumped on the news 13.33% to 1.7c per share in active trade today.

PVW Resources (ASX:PVW)

PVW is purchasing Scanty Brazil, the holder of 11 projects across 952km2 with a pipeline of opportunities to explore for REE mineralisation in a world-renowned mining jurisdiction.

To fund the acquisition it’s doing a cap raise for 25 million shares at 2c per share, amounting to $1.15m.

Due diligence will be carried out and historical results will be looked over. Initial exploration, PVW says, will include surface sampling and augur drilling to validate existing targets and test for further mineralisation, while confirming the tenure’s ionic clay-hosted geology.

Shares in the penny stock jumped 12% to 2.8c per share.

Otto Energy (ASX:OEL)

With $60m in the bank, Otto said it would be giving shareholders back up to $40m as it says its asset base continues to perform above guidance.

That asset base is in the Gulf of Mexico, where it has stakes in five producing and one prospective well with operators Byron Energy, Hilcorp, Talos Energy and Castex.

The cash back is being realised with the release of solid quarterly production rates that increased by 20%, and investors today matched that to increase the share price 20% too.

During the quarter, on a working interest basis, the F1, F2 and F3 wells produced ~46.1Mboe (+11% from prior quarter), or 506Boe/d, an increase attributable to higher uptime during the quarter ended June 30compared to the quarter ended March 31.

Shares jumped.... 20%, for the junior to trade at 1.2c today.

At Stockhead we tell it like it is. While Strategic Energy Resources and Regener8 Resources were Stockhead advertisers at the time of writing, they 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: Polymetallic discovery no Trojan horse and African Gold gains