Dacian Gold Ltd (ASX: DCN)

DCN Details

Mining of first ore at Mount Morgans: Dacian Gold has been successful in achieving another key development at its 100% owned Mount Morgans Gold Project (MMGP), located 25km south-west of Laverton in WA, with underground mine development at Beresford intersecting first ore in early October 2017. This has been ahead of schedule by about four weeks. Underground mining had commenced at Beresford in mid of May 2017; and 1,837m of underground development had been completed by the end of September 2017 compared with the Feasibility Study schedule of 1,509m, signifying a total of 328m ahead of schedule. The first ore scheduled to be mined on 5 November 2017, was exposed on the 2297 access drive as planned, and comprised a highly sulphidised banded iron formation (BIF) unit against a highly competent and visually distinct hanging-wall basalt unit. The group had earlier announced about high grade results from Maxwell’s and Allanson’s Oxide. Further, DCN is just few months away from gold production at MMGP with highly prospective exploration tenure. In another development, Zenith Energy has signed a Power Purchase Agreement (with a term of 8 years starting 2018) with the group to build, own and operate 17MW power station at MMGP. We maintain a “Speculative Buy” on the stock at the current price of $ 2.10
 

Beresford Gold Mine (Source: Company Reports)

Pilbara Minerals Ltd (ASX: PLS)

PLS Details

Received a major environmental approval: Pilbara Minerals’ stock was seen to plunge over 1.3% on October 10, 2017 with some volatility. PLS is on track to achieve first production in Q2 2018 given the construction progress at Pilgangoora Lithium-Tantalum Project in WA. The group lately received the Works Approval from the Department of Water and Environmental Regulation (DWER), and this is the final major environmental approval required to complete construction and facilitate the ongoing operations of the processing and ancillary plant at its 100%-owned Pilgangoora. PLS had secured other key environmental and regulatory approvals earlier in 2017 with the approval of the Mining Proposal in May 2017. Further, financial close on the US$100m senior secured bond has also been now achieved. The bond trustee has confirmed that all conditions precedent required for draw-down of the bond proceeds have been satisfied. The stock has moved up 58% in last one month (as at October 09, 2017) and we believe there is more upside potential given the significant reserve growth and offtake agreements in place for PLS’ key project; and we put a “Hold” on the stock at the current price of $ 0.75

Gold Road Resources Ltd (ASX: GOR)

GOR Details

Gaining exploration exposure in new areas: Gold Road Resources’ stock has rallied 31% this year to date (as at October 09, 2017) and its development on Gruyere gold project is on schedule and budget with group’s aim to deliver first gold in early 2019. The group has now signed two earn-in JV agreements (Earn-in Agreements) with Cygnus Gold (Cygnus) over a 3,400 sq km area of the Wadderin and the Lake Grace Greenfield exploration projects, located in the south-west of WA. This will help the group to earn up to a 75% interest in these two areas. GOR has also agreed to subscribe for A$750k in shares in Cygnus initial public offering (IPO) expected to be in late 2017. To complement its Yamarna greenstone package, GOR will gain exploration exposure over greenstone belt through the above agreements for identifying over million-ounce gold discoveries in the region. Although the stock has had a good run-up up till now, the same is still available at a low price to earnings ratio. We maintain a “Buy” on the stock at the current price of $ 0.72
 

Location of Wadderin and the Lake Grace Greenfield Projects (Source: Company Reports)

Syrah Resources Ltd (ASX: SYR)

SYR Details

Completion of A$110m equity raising: Syrah Resources has concluded the capital raising that the company announced for in September with the completion of its 1 for 10.5 non-renounceable entitlement offer. The retail component of the entitlement Offer, which constituted the final stage of the A$110m equity raising, closed on 5 October 2017, and raised A$36m with support from the eligible retail shareholders. SYR reported that valid applications from eligible retail shareholders for 8.5m new shares, including valid applications from eligible retail shareholders for additional new shares in excess of their entitlement up to a maximum of 50% of their entitlement, representing a take up rate of 79%, were received. Meanwhile, final construction activities on Balama Graphite project are progressing well with tight sectional commissioning schedule following some productivity issues revealed in July and August. SYR still aims to have first production by end of October 2017. We maintain a “Hold” on the stock at the current price of $ 3.60

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