We have an update from Asiamet Resources* (LON:ARS) in the Companies section. Nostalgic investors will remember this company as Kalimantan Gold; the company is developing a portfolio of large copper-gold deposits on the Indonesian islands of Kalimantan and Sumatra. Its main asset is the near-term production copper mine Beruang Kanan Main. It was on this resource that Asiamet has released the results of a PEA. Having hit a low on 21 January of 0.975p, the stock appreciated to around the 4p level ahead of the announcement, and then spiked to 5.85p on what looks like a moment of high exuberance. It is currently trading around 3p.
It’s not just Asiamet that is seeing a lot of active trading on impressive volumes. We have seen these sort of movements across junior resource stocks this year, so while the world waits with baited breath to see if we are going to end the year with President Trump and the UK negotiating its departure from the EU, traders have begun to work on our sector in a positive way. There really is more upside potential than downside risk.
One of the stocks that has benefited is North River Resources† (LON:NRRP). It is currently undertaking a drill programme at the northern sector of the Namib mine in Namibia. It saw some excellent drill results recently and looks to be proving up an extended resource there. We did some marketing for James Beams around Easter, and he is available pretty much anytime for investors that would like an update on how things are progressing.
We are filling the schedules for Base Resources*† (LON:BSE) and White Rock Minerals†† (ASX:WRM) for next week. As a production story Base is attracting long-only institutions that are beginning to look again at the sector (having been basically zero-weighted over the past 3-4 years). This is clearly an extremely positive sign for the sector. While White Rock Minerals is small and only ASX-listed, it has been getting interest from some groups here in London that like its gold and silver mining projects in Australia; thanks to the weak Aussie dollar, the project’s economics look great. Interest also comes from the recent acquisition of Atlas Resources with its Red Mountain VMS lead-zinc project in Alaska. Please let us know if you’d like a meeting with either company.