Small cap investors likely didn’t need eagle eyes to realise that Australian gold stocks are abuzz.
Sure, gold and precious‑metal shares are generally higher right now, record prices for the yellow metal will of course do that.
Nevertheless, there’s a particular group of explorers and junior mining stocks that have seen their valuations transformed by what are still pretty early‑stage findings from fieldwork.
These stocks – namely Wishbone Gold, Cloudbreak Discovery, First Development Resources, and GEO Exploration – are all focused on projects in the Paterson region of Western Australia.
More specifically, these companies are hoping to follow in the footsteps of Greatland Resources which has been the Paterson’s breakout success story.
For those who missed it, Greatland has been a standout gold stock on AIM, propelled at first by the Havieron discovery, and, then later transformed by opportune deal‑making with its former JV partner Newmont in December 2024.
It took full control of Havieron and picked up the nearby, producing Telfer mine in the transaction.
Greatland has been a standout gold stock on AIM, propelled at first by the Havieron discovery
Today, Greatland is valued at around £2.1 billion with £280 million (A$574 million) on the balance sheet. It’s gone from upstart explorer to producer, and when Havieron comes on stream in 2028 (according to current forecasts), the project’s annual output is forecast to exceed 220,000 ounces.
So, with context now firmly set, what does that mean for the hardy bunch now scratching the surface of separate but proximate projects?
‘Nearology’, the semi‑serious art of drilling near something big, is as good a place to start as any. In the small caps it’s a well trodden path … and, in concept, it can seem as simple as if there’s gold there, there may be gold here too.
Basically, the hope is that with a bit of exploration, you can land your own Havieron, to establish a project that can stand on its own and drive value creation for the company.
There’s a second, quite obvious hope. And, to explain let’s unnecessarily paraphrase some nostalgic antipodean wisdom, ‘good neighbours can become good friends’.
It isn’t far‑fetched to imagine that Greatland may want to bulk out its project pipeline (via JV earn‑ins or outright M&A) if the right targets emerge.
Now, Greatland isn’t exactly on record saying its in the market for more deposits. But, it has spelled out its future growth in the region will be through a ‘hub and spoke’ strategy.
It makes commonsense, given that the Telfer mine is home to the region’s only operating gold processing plant.
Havieron will use the plant, that was a core rationale of last year’s acquisition, and it is also anticipated that other nearby deposits could be added as ‘spokes’ in this scenario too.
Of course, Greatland may itself simply mean it intends to find those deposits.
But, either way, a tidy proposition appears to have emerged in the minds of small‑cap investors.
And, a handful of WA gold names are now very much in the spotlight, so without further ado lets take a look at them.
Wishbone Gold has the Red Setter Gold Dome project, also in the Paterson region, roughly 15 kilometres from Telfer, right in the Havieron neighbourhood.
At Red Setter, Wishbone describes the geology as being ‘Telfer/Havieron‑style’ setting.
Diamond drilling re‑started through July and August, and the results have sent the London-listed shares to a 1,000 per cent gain this summer.
Investors are now awaiting more results from the field, as well as more considered analysis.
Cloudbreak Discovery, up more than 500 per cent this summer, has two shots in Western Australia – one is Darlot West, which is separate to the Paterson ‘Greatland-alikes’, where its evaluating historic mine works near a currently producing mine.
The explorer’s other opportunity, meanwhile, is an option of nearly 900 square kms that’s located some 40 kilometres from Telfer.
Most of the operational news flow (including an announcement today) has been about Darlot, but anticipated upcoming news will reveal the findings of a ‘due diligence’ evaluation of the area, and presumably whether or not Cloudbreak want to take up the project.
First Development Resources, which came to market in late July and is up 30 per cent since the float, has the Wallal project, where its drilling a target that management is compares to Havieron.
Drilling started in September, and results are slated to be released in the coming weeks and months.
GEO Exploration has the Juno target, which is presented as another ‘Havieron-alike’ project.
The parallel here isn’t especially subtle, with the AIM-quoted firm even hiring the same drill contractor that previously worked on the Greatland project.
Drilling started in early Autumn, and the shares up some 150 per cent since the summer.l
For each explorer, the narratives are well spun and operations in the field are progressing. And, in many cases, investor are already bought into the concept.
Now, it’s down to the coming phases of exploration and results to deliver.
Greatland was a standout small cap success story, let’s see if any of these can do the same.
For all the market’s small- and mid-cap news, go to www.proactiveinvestors.co.uk
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This article was originally published by a www.dailymail.co.uk . Read the Original article here. .