In a week marked by significant market movements, several Australian Securities Exchange (ASX) companies experienced remarkable gains. Key players included Bass Oil Limited, Marmota Limited, Alvo Minerals Ltd, and Alchemy Resources Ltd. Their performances highlight a robust interest in resource stocks amidst changing economic conditions.
Bass Oil Limited’s Remarkable Surge
Bass Oil Limited saw its shares skyrocket by 174%, rising from 3.4 cents to a peak of 9.3 cents. This surge followed the announcement of a binding gas sales agreement with Origin Energy for 100% of the gas from its Vanessa gas field in the Cooper Basin. The three-year contract covers up to 12.05 petajoules of gas, translating to approximately 2 million barrels of oil, with production expected to commence next year.
The Vanessa field, drilled in 2007, began operations in 2018 but was previously halted. With existing infrastructure in place, including a 5-kilometre pipeline linked to the Cooper trunk line, the transition to active production is expected to be seamless. The company’s market capitalization remains under $20 million, positioning it favorably in a tightening gas market.
Marmota Limited’s Gold Discovery
Marmota Limited also made headlines, achieving an impressive 111% increase in share price, from 7.1 cents to 15 cents. The company reported exceptional results from its maiden drilling at the Greenewood prospect in the Gawler Craton. Notable findings included a 33-meter intercept with a remarkable 10 grams per tonne (g/t) of gold, alongside other high-grade hits.
The high-grade gold discovery has drawn significant attention, with the company planning further drilling to increase its understanding of the deposit. Marmota aims to establish a maiden resource by mid next year, with the potential for a robust scoping study to follow. The company’s shares traded in considerable volume, reaching around $150 million in market capitalization.
Alvo Minerals’ Copper Exploration
Alvo Minerals Ltd experienced an 81% rise in share price, climbing from 5.2 cents to 9.4 cents. The company reported significant progress at its Touro target within the Palma project in Brazil, with multiple diamond drill holes revealing thick massive and semi-massive sulphides. The discovery now extends to 750 meters of strike, with further exploration planned to investigate deeper mineralization.
Alvo’s existing resource at Palma is already substantial, with 7.6 million tonnes at 2% copper equivalent. The ongoing assays are anticipated to provide further insights into the potential of the Touro discovery, which could significantly enhance the company’s valuation in a competitive copper market.
Alchemy Resources’ Iron Ore Advances
Alchemy Resources Ltd rounded out the week with a 67% increase in its share price, climbing from 0.9 cents to 1.5 cents. The company released promising results from its Valley Bore project in the Bryah Basin, where initial assays indicated impressive iron grades, including a 20-meter section with 62.9% iron content.
With iron ore prices holding above US$100 per tonne, the market responded positively to Alchemy’s findings. The company has also entered into a heads-of-agreement with Newcam Minerals for initial cash and shares, which could further enhance its operational capabilities.
As the ASX continues to navigate dynamic market conditions, these companies exemplify the potential for growth in Australia’s resource sector. Their recent performances not only reflect individual company successes but also indicate broader trends in commodities and energy markets.
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