Here are the top five performers for the year to date. For a full list of the top 100, go to http://www.mining-journal.com/focus-top-articles/aussie-gold-stocks-on-the-move/
1. Middle Island Resources: up 539%. MIR had a subdued start to the year but shot into orbit in early May when its announced an agreement to buy the Sandstone gold operation in Western Australia for A$2.5 million (US$1.9 million) along with a $400,000 raising – shares roared northward by 300% over three days to $0.04.
The company subsequently said it would raise up to $5.05 million through a rights issue and conditional placement to fund a feasibility study and further exploration. The rights issue for a targeted $1.45 million closed in late June netting almost $1.85 million and helping the shares higher still – MIR had put on another 50% in early July.
The company plans to fast-track refurbishment of the operation, which has some 480,000 ounces in resources, “significant brownfield exploration targets”, and a 600,000 tonne per annum processing plant on care and maintenance.
2. Barra Resources: up 516%. We’ve maintained Barra on this list given its exposure to the rising gold price through its Phillips Find and Burbanks gold exploration properties in Western Australia. However, one can’t help feel it is its plan to develop the Mt Thirsty nickel-cobalt property (50% Barra; 50% Conico), also in Western Australia, has had more to do with the equity’s meteoric ascent as investors tune in to the demand story for lithium-ion batteries, which are hungry for not just lithium but cobalt and nickel, too.
3. Resolute Mining: up 471%. Resolute’s 2016 performance has followed the gold price ascent, while the gold miner’s progress across its Africa and Australia portfolio has continued to provide the leverage for which gold stocks are typically bought.
The company put on 228% over the first five months of the year then, as June approached, kicked strongly to add another 70% in a month as it announced early debt redemptions, a restart at the Ravenswood openpit (Australia), and the completion of the Bibiani feasibility study (Ghana). The definitive feasibility study at Syama (Mali) came in on July 1.
4. Gascoyne Resources: up 423%. The improvement for the six months was impressive but the peak performance for Gascoyne actually came in early May when it reached $0.69 on the back of two key milestones.
First, a prefeasibility study was published for its 80%-owned Dalgaranga project in Western Australia that outlined a 100,000oz per annum operation with two openpits feeding a 2.5 million tonne per annum plant for an initial six years. Then, Gascoyne completed a heavily oversubscribed $15 million placement to fund a full feasibility study and continue “aggressive” exploration of its broader Western Australian gold portfolio.
5. Exterra Resources and Alicanto Minerals: both up 362%. Alicanto’s progress started has been pegged to Barrick Gold’s decision to proceed with a plus-$13 million earn-in agreement for 65% of the Arakaka project in Guyana; while Exterra signed an innovative profit-sharing agreement with contractor Pybar over its Second Fortune development in Western Australia. The latter has also picked up some lithium ground, which has helped.
