Juniors on Radar: Explorers on the Move Today

The S&P/ASX 200 materials index opened 1.16% higher today, outperforming the ASX 200. 

3-month chart of the S&P/ASX 200 materials index, with the ASX 200 shown in red. 

#1 Zinc

Zinc has gained 3.04% today to hit an all-time high of US$4,509/t, crossing above the previous high-water mark of November 2006. 

• Ardea Resources (ASX: ARL) is up 8.43% at the open and up 304.93% for the last year. The company’s Bulong prospect contains 36 defined exploration targets, which include prospective zinc mineralisation. 

• Dateline Resources (ASX: DTR) is up 8.33% at the open and 30% for the past year. The company’s Udu Mine in Fiji has an inferred resource of 4.5Mt at 3.9% zinc. 

Company announcements

#1 Megado Gold

Megado Gold (ASX: MEG) has opened 100% higher after fully acquiring Felix Strategic Minerals. Felix has the rights to secure all of the North Fork rare earth project in Idaho, USA.

CEO and managing director Michael Gumbley said:

“The North Fork Rare Earth project is a tremendous opportunity for Megado. The incorporation of a high-grade rare earth element project in an extremely receptive mining jurisdiction is an incredible addition to the Company’s portfolio.”

“Importantly, historical exploration, sampling mineralised outcropping veins, indicated extremely high-grade total rare earth oxides in excess of 20%, including significant returns of ‘critical rare earths.’”

Next catalyst: the company plans to raise $2.4m to fund initial exploration at North Fork. Megado expects to begin this once the acquisition is finished. 

#2 Elmore

Elmore (ASX: ELE) has opened 33.33% higher after starting commercial production at the Peko Magnetite processing plant. At the plant, production will ramp up to 350,000t per annum. For context, magnetite concentrate currently sells for US$200/t, according to the company. 

“Commencement of commercial production at Peko is a monumental milestone for us as a small, startup service company,” says managing director David Mendelawitz. 

#3 Kuniko 

Kuniko (ASX: KNI) has opened 25.44% higher after a geophysics survey confirmed the presence of conductors at the Skuterud cobalt project in Norway. 

““With drilling set to launch in the next weeks, these latest borehole geophysics results provide further signs of the potential and opportunity at the Skuterud Cobalt Project,” says CEO Antony Beckmand. 

Next catalyst: the company will begin a maiden drill program on 2 May, focussing on three prospective targets.