Prospect Resources Ltd

PSC Details
Positive assay results from 4 more RC drill holes: Prospect Resources Ltd (ASX: PSC) has reported assay results from 4 more RC drill holes that showed a peak grade of 4.31% Li₂O from the Arcadia high grade lithium project. The assays from 9 RC drill holes have been received and the results from another 23 RC holes are pending. The drilling has currently just covered approximately 12% of the PSC’s exploration area.  Moreover, over 300m length outcrop of lithium bearing pegmatite has been discovered within the Arcadia High Grade Lithium Project area. We give a “Speculative Buy” recommendation on the stock at the current price of $0.046

 
PSC Daily Chart (Source: Thomson Reuters)

Galaxy Resources Limited

GXY Details
Drilling confirmed the significant deep mineralized zone: Galaxy Resources Limited (ASX: GXY) has reported that final commissioning is finished on the ore preparation area and the wet commissioning has started in the feed classification and tantalum beneficiation areas of the Mt Cattlin Project. In addition, GXY in an update on exploration activities at the Mt Cattlin Project has received Initial drill results from the diamond drilling program, confirming significant deep mineralized zone over 500m width.

 

Plan view of Drill hole location plan at Mt Cattlin (Source: Company Reports)
 
The mineralization is open in all directions, particularly to the east and there is scope for finding additional repetitions in upthrust faulted positions. We give a “Buy” recommendation on the stock at the current price of $0.31

 
GXY Daily Chart (Source: Thomson Reuters)

Beadell Resources Ltd

BDR Details
New gold zones identified at Tucano mine: Beadell Resources Ltd (ASX: BDR) announced that its TAP AB1 & TAP AB2 Oxide targets at Tucano mine in Brazil are delivering high grade gold results while two new gold zones have been identified.

 

Tucano Exploration Update (Source: Company Reports)
 
BDR also made a Deed of Undertaking with Amapa Electricity Company for the power supply at its 100% owned Tucano gold mine in northern Brazil, to improve electricity for surrounding places. As per the deed, BDR has started the required improvements to the existing 110km 69 KV power line which terminates at Tucano. On the other hand, BDR stock fell 22.77% in three months (as of October 10, 2016) due to declining gold prices on concerns of interest rates hikes. But BDR is expecting CY 2016 production to be 145,000-160,000 ounces of gold at an AISC for CY2016 forecasted to be between US$715-US$815 per ounce, indicating the group’s clear margins against the current gold prices. The stock in fact rose 6.9% on October 11, 2016. We give a “Speculative Buy” recommendation on the stock at the current price of $0.42

 
BDR Daily Chart (Source: Thomson Reuters)

Pilbara Minerals Ltd

PLS Details
Acquiring the adjoining Lynas Find Lithium Project: Pilbara Minerals Ltd (ASX: PLS) has entered a binding agreement with Dakota Minerals to acquire 100% of the adjoining Lynas Find Lithium Project at $4 million. Further $1 million payment is expected to be made by PLS on the granting of a term extension on one of the core tenements. As per the agreement, PLS would acquire the core Lynas Find granted tenements package, which includes the maiden indicated and inferred mineral resource of 7.3Mt @ 1.25% Li₂O, 85ppm Ta₂O₅ and 0.99% Fe₂O₃. This would enhance the overall mineral resource of the company by increasing the tonnes readily accessible to the future processing facilities and will firmly consolidate its strategic position in the world-class lithium/tantalum district. We give a “Buy” recommendation on the stock at the current price of $0.46

 
PLS Daily Chart (Source: Thomson Reuters) 

Altura Mining Ltd

AJM Details
DFS confirmed significant mining opportunity: Altura Mining Ltd (ASX: AJM) has reported positive results of the Definitive Feasibility Study (DFS) which were finished completed on its 100% owned Pilgangoora Lithium Project in Western Australia’s Pilbara region, which promised substantial long term sustainable stakeholder value. The DFS results show that the project has a Net Present Value (NPV) of $411 million over an initial 13-year mine life based on the current ore reserve estimate of 20.33 million tonnes, Life of Mine (LOM) cash costs of A$316 per tonne of spodumene concentrate, and an attractive capital estimate of A$139.7 million including sustaining capital and a payback period of 1.8 years.
 

Altura Pilgangoora Ore Reserve Estimate (0.4% Li₂O Cut-off Grade) (Source: Company Reports)
 
Additionally, there is still huge potential to increase both the current resource of 39.4 million tonnes and ore reserve estimate while the current resource extension drilling program results are expected to be out by fourth quarter of 2016. In addition, the updated Ore Reserve Estimate for Pilgangoora Lithium Project totals 20.3Mt at 1.06% Li₂O and is classified entirely as a Probable Ore Reserve estimate. We maintain a “Buy” recommendation on the stock at the current price of $0.13

 
AJM Daily Chart (Source: Thomson Reuters)

Silver Lake Resources Ltd

SLR Details
RC drilling at the Break of Day gold prospect commenced: Silver Lake Resources Ltd (ASX: SLR) recently reported that Musgrave Minerals Ltd (MGV) announced for reverse circulation (RC) drilling program being re-commenced at the Break of Day gold prospect on the Cue project (joint venture of SLR and MGV) in the Murchison region of Western Australia. The RC drilling program comprises over 30 drill holes for 4,000m which would require about 3 weeks for completion.
 

Total Silver Lake Gold Mineral Resource as of June 2016 (Source: Company Reports)
 
Moreover, SLR’s total measured, indicated and inferred mineral resources as at 30^th June 2016 are 54.8 million tonnes @ 2.8 grams per tonne of gold for 4.92 million ounces of gold. SLR stock rose over 36.99% in the last six months (as of October 10, 2016) and we give a “Buy” recommendation on the stock at the current price of $0.48

 
SLR Daily Chart (Source: Thomson Reuters)

Gold Road Resources Ltd

GOR Details
Early works at Gruyere Gold Project: Gold Road Resources Ltd (ASX: GOR) recently reported for completion of initial resource drilling at YAM14, 8 km from 6.2 Moz Gruyere Gold Project. GOR also announced for early works at over A$18 million which would start at the Gruyere Gold Project, after getting the grant of several key Miscellaneous Licenses from the Department of Mines and Petroleum. This would ensure planned construction of the Gruyere accommodation village and an access road to the main site, in the December 2016 quarter.
 
YAM10 cross section showing drill hole 16SYAC0691 and interpreted geology (Source: Company Reports)
 
Moreover, the regional aircore (AC) drilling program has identified several gold targets while a Reverse Circulation (RC) drilling program would start testing the priority targets in the December 2016 quarter. We give a “Buy” recommendation on the stock at the current price of $0.56 


GOR Daily Chart (Source: Thomson Reuters)

Syrah Resources Ltd

SYR Details
Management changes: Syrah Resources Ltd (ASX: SYR) has announced the resignation of its Managing Director, Mr Tolga Kumova; and Mr Jim Askew, will take an Executive Chairman role for the interim period until a new Managing Director is appointed. Moreover, SYR has reported the results of a comprehensive pilot plant test program undertaken in Brazil, which showed a major improvement in total graphitic carbon (TGC) that could be achieved across all size fractions by the addition of a liberation circuit as a final process step at the Balama Project. Additionally, the extensive piloting program has produced an average flake graphite concentrate grade in the range of 96.5% to 98.8% TGC across a range of flake sizes, while further work is on-going which would achieve optimized grades. We give a “Buy” recommendation on the stock at the current price of $3.81

 
SYR Daily Chart (Source: Thomson Reuters)

Troy Resources Ltd

TRY Details
Completion of retail entitlement offer: Troy Resources Ltd (ASX: TRY) successfully completed retail entitlement offer and raised a total of $12.8 million at $0.36 per new share. With this, the group completed $40.7 million equity raising. TRY reported a loss per share on a fully diluted basis from continuing and discontinued operations of 29.6 cents in FY 16, as compared with loss of 49.4 cents in 2015. The consolidated loss from continuing operations after tax in FY 16 was $13.4 million compared to the loss after tax of $8.7 million in FY 15. But the group is now expecting production in the range of 85,000- 95,000oz for FY17 at an AISC of US$750 - 850/oz. We recommend for a “Speculative Buy” on the stock at the current price of $0.35

 
TRY Daily Chart (Source: Thomson Reuters)

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