The ASX materials sector opened -0.80% lower today, underperforming the S&P/ASX 200.
Most commodity prices dropped after Shanghai locked down in response to China’s highest surge in covid cases since March 2020. Confirmed peace talks between Ukraine and Russia also eased commodity prices.
Zinc is one of the few commodities that has resisted the tide to edge higher today, posting a 0.73% gain. The move continues zinc’s strong bullish run from the start of 2022.
Argonaut Resources (ASX: ARE) is up 12.50% at the open. The company’s Kroombit deposit in Central Queensland holds a zinc resource of 5.2Mt. Sulphide flotation tests have produced a concentrate grading at 58% zinc with an 87% recovery rate.
Copper futures are up 0.51%, despite rising global production softening concerns about a forthcoming market deficit.
Hillgrove Resources (ASX: HGO) has opened 4.55% higher. The company operates the Kanmantoo copper gold mine in SA, which is scheduled to commence underground mining this year.
Impact Minerals (ASX: IPT) also has copper exposure.
Recharge Metals (ASX: REC) has skyrocketed 307.69% after reporting “significant” copper mineralisation at the Brandy Hill South project. The news comes after the company finished a maiden reverse circulation drilling program in January.
It’s worth noting that the company held $4m in cash as of 31 December 2021–and the company now has a market cap of $4m (up from ~$1m before today). So while finding copper mineralisation has bolstered the company’s share price, Recharge was arguably trading well below its value and today’s gap-up has addressed that.
PhosCo (ASX: PHO) has jumped 20% at the open after posting metallurgical results from the Chaketma phosphate project.
“The 28-tonne bulk sample test work confirms the ability to produce a high quality product and lay down an excellent base line for producing phosphate rock concentrate,” says Specialist Processing Engineer Michael Kelahan.
Carnavale Resources (ASX: CAV) has opened 9.09% higher after recommencing drilling at the Kookynie gold project. The reverse circulation drilling program will explore newly discovered, shallow, high-grade gold lodes, targeting extensions to previously discovered mineralisation.
“CAV has been quick to return to Kookynie to follow up on the impressive high-grade gold identified in the first RC program at McTavish East,” says CEO Humphrey Hale. “The follow up RC drilling is planned to grow this bonanza grade gold discovery and test other targets.”
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