Top 5 resources: Former Northern Star boss arrives to revive ailing gold miner


  • Celsius Resources Intersects 611.4m Long Intersecting 1.39% Copper and 0.75 g/t Gold During Drilling at the MCB Project
  • Struggling Gold Miner OBM Hires Former Northern Star COO As New Managing Director
  • Alara Resources Forms Joint Venture to Bid for Khnaiguiyah Zinc-Copper Exploration Permit

Here are the biggest winners in small-cap resources in early trading on Monday, July 4.

Explorer named Celsius is so hot right now™- after hitting a 611.4m long flagship intersection grading 1.39% copper and 0.75g/t gold while drilling the flagship MCB project in the Philippines.

This includes a 77.5 m long high grade portion grading 2.47% copper and 2.12 g/t gold (3.34% copper equivalent) from 232.10 m.

This hole (MCB-038) was designed to improve confidence in the existing resources of 1.5 million tonnes of copper and 1.47 million ounces of gold, in addition to defining other areas at greater high grade to improve the upcoming feasibility study.

Like the holes that preceded it, MCB-038 confirmed the presence of a broad premium shallow position, said CLA Executive Chairman Martin Buckingham.

“We still have a few diamond drill holes to come that are planned to better define the shallow, easy-to-access high-grade copper at MCB,” he says.

“Drilling results over the past 6 months have identified significant additions to the copper mineralization and we look forward to understanding the impact of these results as we enter our resource estimate and JORC Update feasibility studies at during the second half of this year.”

A scoping study for the project announced in December 2021 envisaged the development of an underground copper-gold mine with a lifespan of 25 years.

Highlights of the scoping study include an after-tax NPV (8%) of $464 million and an IRR of 35%, assuming a copper price of $4.00/lb and a gold price of $1,695/oz.

Initial capital expenditure was estimated at US$253 million with a payback period of approximately 2.7 years.

The stock market capitalization of $34 million has been flat year-to-date. He had $3.5 million in the bank at the end of March.

Sound the alarm bells, this short-term copper miner has formed a joint venture to bid for the 353 sq km Khnaiguiyah zinc-copper exploration license in Saudi Arabia.

It includes the formerly AUQ-owned (and highly advanced) Khnaiguiyah zinc-copper project, which was the subject of a bitter battle between the explorer and its then-partner JV in the early 2010s.

The new Alara-Al Tasnim joint venture (Alara 51%, Al Tasnim 49%) is among 8 shortlisted parties bidding for the license, according to AUQ.

Meanwhile, AUQ is focusing on the development of the Al Wash-hi Majaza copper-gold project in Oman, where it is constructing the mining and processing facilities.

A revised DFS called for a small open pit operation producing 35,000 tpa of concentrate per year for approximately 80,000 t of copper and 21,800 oz of gold over 10 years. Its construction will cost around $60 million.

The $41 million market cap stock is up 220% year-to-date. It had $59 million in undrawn funding facilities at the end of March.

(In the absence of news)

This recently listed Red Dirt Metals (ASX:RDT) spinoff is focused on adding the East Canyon uranium and vanadium project to its Utah work.

UVA is fully funded to launch the inaugural drilling at East Canyon after raising $6 million in the IPO.

The drilling will follow a 2020 underground RDT mapping and sampling program which has identified extensive historical work on the None Such and Bonanza prospects.

“Visible uranium-vanadium mineralization was observed and sampled in both prospecting works, which returned high-grade assays,” said Managing Director Peter Woods.

“UVRE intends to continue this work and explore the remainder of the project area to define other priority drill targets.”

The project is booming in the Colorado Plateau region, which has been a major source of uranium and vanadium in the United States for more than 100 years.

The $5m market cap share is down 20% from its IPO price of 20c per share.

(In the absence of news)

The junior bauxite miner struggled as the cost of key inputs weighed heavily on the bottom line, despite high prices for the aluminum ingredient.

MMI hopes to turn profitable with a $28.3m “low risk” expansion of the 7Mtpa Bauxite Hills mine, which was approved today.

All regulatory approvals are in place with plans to execute the expansion by the fourth quarter of 2023, MMI boss Simon Wensley said.

“The completion of the DFS expansion confirms that the Bauxite Hills mine is a very profitable, low cost, long life producer of good quality bauxite,” he said.

“This brownfield expansion is low risk and low capital outlay, with a 100% mandatory drawdown now confirmed for 2023 and 2024 with our established client Xinfa, and no further approvals required.

“The expansion to 7M WMT per year is perfectly timed to respond to bauxite market conditions which are expected to be very strong over the next few years.

“The advantages of scale mean that the potential financial returns are exceptional, and I thank [lenders] Greenstone and Lambhill for their support in acting immediately to accelerate implementation. »

The shortened March quarter saw MMI sell 300,000t at record prices of $75/t (revenue A$24.9m, net loss $5m) before operations ceased in February 2022 to rainy season maintenance.

Production and shipping restarted in April.

The $56 million market cap stock is up 5% year-to-date. He had $5.2 million in the bank at the end of March.

Struggling gold miner OBM has secured the services of a new managing director to improve its fortunes.

Luke Creagh is a mining engineer with 20 years experience working for contracting and mining companies on projects in Australia and overseas.

He most recently served as chief operating officer at Australia’s second largest gold mining company, Northern Star Resources (ASX: NST).

“We couldn’t be happier to have Luke join us,” says OBM President Peter Mansell.

“He has considerable experience in managing mining operations and is highly qualified to guide Ora Banda through his current operational reset plan.

“We look forward to working with him for many years to come and are confident that together we can extract maximum value from the highly promising land package of Ora Banda.”

In late 2018, continuing problems at the historic Davyhurst gold mine near Kalgoorlie saw its then-owner, Eastern Goldfields Limited, call administrators.

Believing the project had unrealized potential, the company’s major shareholders agreed to a restructuring through a company deed of arrangement – a process that allowed the company to settle its debts and start afresh. .

And so, in 2019, Ora Banda Mining Limited was born. Mining restarted in February 2021 with an initial life of 5.2 years, production of 81,000 oz per year.

The aspiration was $68.8 million in average annual profit at a gold price of around $2,550/oz.

That has not been the case, with ongoing cost and performance issues prompting the company to launch a strategic review and ‘reset’ its operations at Davyhurst earlier this year.

The $52 million market cap stock is down 36% year-to-date. He had $28.2 million in cash, 1,657 ounces of bullion on hand and no debt at the end of March.


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