Top 5 Australian Mining Stocks This Week: Waratah Shares Soar After Spur Project Drill Results

Market and commodity price round-up

The S&P/ASX 200 (INDEXASX:XJO) saw a 1.88 percent gain this week, opening at 8,662 on Monday (August 4) and closing at 8,823.9 on Friday (August 8).

As for precious metals, gold demonstrated a 0.92 percent increase in US dollars, going from US$3,362.94 per ounce on Monday to US$3,393.75 by the close of Australian trading on Friday.

The metal was fairly steady in Australian dollars, moving from AU$5,194.69 to AU$5,201.70 over the same period.

Silver largely remained flat in US dollars, starting the week at US$38.17 per ounce and closing at US$38.33 with a 0.41 percent increase. In Australian dollars, the metal went from AU$57.12 to AU$58.76.

Top ASX mining stocks this week

How did ASX mining stocks perform against this backdrop?

Take a look at this week’s five best-performing Australian mining stocks below as the Investing News Network breaks down their operations and why these mining stocks are up this week.

Stocks data for this article was retrieved at 4:00 p.m. AEST on August 7 using TradingView's stock screener and reflects price movements between August 4 and 7. Only companies trading on the ASX with market capitalisations greater than AU$10 million are included. Mineral companies within the non-energy minerals, energy minerals, process industry and producer manufacturing sectors were considered.

1. Waratah Minerals (ASX:WTM)

Weekly gain: 120.34 percent
Market cap: AU$107.42 million
Share price: AU$0.65

Waratah Minerals is an exploration company based in Orange, New South Wales.

It is currently focused on advancing its flagship Spur gold-copper project, located in the East Lachlan region of New South Wales, a district known for tier one gold-copper porphyry deposits. The Spur project is situated 5 kilometres west of Newmont's (TSX:NGT,NYSE:NEM) world-class Cadia Valley operations.

On Monday, Waratah shared drill results that extend the Spur gold corridor, with a return of 208.7 metres at 1.17 grams per tonne (g/t) gold from 514 metres, including 89 meters at 1.96 g/t gold from 614 metres.

“We have always believed that the epithermal gold mineralisation of the Spur Gold Corridor crossed the Essex Fault and should extend to the northeast, despite historical drilling having been unable to locate extensions,” Managing Director Peter Duerden said in the company's announcement.

In its August investor presentation for the Diggers & Dealers Mining Forum, the company underlined that the corridor is “well-positioned for continued expansion,” as only around 20 percent of the target area has been tested.

Shares of Waratah reached a weekly high of AU$0.65 on Thursday (August 7).

2. GBM Resources (ASX:GBZ)

Weekly gain: 73.68 percent
Market cap: AU$32.56 million
Share price: AU$0.033

GBM Resources is an explorer and developer focused on the discovery of world-class gold and copper deposits in Queensland. Its flagship asset is a fully owned group of projects — Yandan, Twin Hills and Mt. Coolon — located in the Drummond Basin, among Australia’s major gold provinces with a production history of over 4.5 million ounces.

Combined, the three projects host 1.84 million ounces of gold with a total area of 4,667 square kilometres.

Mt. Coolon is subject to a farm-in partnership between GBM and leading gold producer Newmont. In late April, Newmont released final assays from a Phase 1 drill program at Mt Coolon.

Shares of GBM soared to AU$0.014 following the June 24 announcement that it had received firm commitments to raise AU$13 million, which it will use in part to repay and cancel all of its existing convertible notes with Collins St Asset Management; the notes are worth AU$6.2 million. Following the placement, the company said that it will be free of debt and well positioned to pursue its 12 month exploration program.

“With a strong debt-free balance sheet, GBM now has a great opportunity to deliver value to shareholders through an accelerated exploration programme across Twin Hills and Yandan,” said Executive Director Andrew Krelle.

On July 31, GBM released its June quarterly report, highlighting updates including the firm commitments.

This week, shares of GBM were the highest on Thursday, peaking at AU$0.033.

3. Leeuwin Metals (ASX:LM1)

Weekly gain: 71.72 percent
Market cap: AU$16.13 million
Share price: AU$0.17

Gold explorer Leeuwin Metals' flagship asset is the Marda gold project in the Goldfields region of Western Australia, which spans over 500 square kilometres with eight historical open pits.

Drill results released by the company on July 29 confirm thick, high-grade gold mineralisation at depth and below the current pit of Marda’s Python prospect. One hole intercepted 5 metres at a grade of 5 g/t gold from 229 metres to the end of the hole, including 1 metre at 10 g/t from 231 metres.

Leeuwin said it has identified 11 new target areas through field mapping and rock chip sampling, with over 120 assays still pending. A reverse-circulation drill program is planned to begin in mid-August at the Evanston target, alongside structural mapping and 3D geological modelling to support a maiden resource estimate later this quarter.

On Monday, Leeuwin responded to an ASX price query regarding a sharp rise in its share price — it jumped from a close of AU$0.099 on the previous trading day to an intraday high of AU$0.155 on Monday.

The company attributed the spike to three factors: a strong gold price, the release of a third-party research report covering the company and a rebound following a brief period of low liquidity and softer trading conditions.

Shares of Leeuwin were the highest this week on Thursday at AU$0.17.

4. Altair Minerals (ASX:ALR)

Weekly gain: 60 percent
Market cap: AU$30.08 million
Share price: AU$0.008

Altair Minerals is an explorer with projects in Australia and Canada, and is focused on the discovery of gypsum, lithium, cobalt and copper. It holds 80 percent ownership of the Olympic Domain assets in South Australia, namely Horse Well, Pernatti C and Lake Torrens, all of which are currently being explored, with drilling underway at Horse Well.

Company shares have been trending upward since June. Altair requested a trading halt on August 1 pending the release of an announcement on a proposed project acquisition and capital raising.

The acquisition was announced on Tuesday, with Altair revealing it intends to buy up to a 70 percent interest in the Greater Oko gold project in Guyana. It has received binding commitments to raise AU$3.2 million at AU$0.004 per share. According to CEO Faheem Ahmed, Greater Oko has the potential to be a "company maker."

“Due to the scattered and small nature of permits held by private citizens within the country, it virtually makes it impossible for any party to come in (and) put together a contiguous block to the scale we have, let alone with advanced exploration targets and arguably sitting in the hottest gold district in South America and West Africa," he said.

"It’s a deal which simply can’t be replicated.”

Shares of the company rose as high as AU$0.008 on Wednesday (August 6), a day after the announcement and the recommencement of trading for Altair.

5. Globe Metals & Mining (ASX:GBE)

Weekly gain: 41.82 percent
Market cap: AU$50.71 million
Share price: AU$0.078

Globe Metals & Mining is focused on the development of strategic metals, primarily niobium and tantalum. Its flagship asset is the Kanyika niobium project in Malawi, which has a 20 year projected mine life.

The project is designed to produce high-purity niobium and tantalum pentoxide powders, metals that are critical inputs for high-strength alloys essential in aerospace, automotive and electronics.

According to its latest project update, published on July 6, the company will delay the release of a bankable feasibility study to ensure that the final design and budget include improvements identified from early contractor involvement and to align with current market conditions. In its activities report for the June quarter, released on July 30, the company said that its Kanyika niobium project aligns with global demand trends and supply chain expectations, positioning it as a credible, ethical and strategically critical source of niobium and tantalum.

“Our leadership team, combined with ongoing government engagement, positions us well for our Final Investment Decision,” commented Interim CEO Charles Altshuler.

On July 31, GBM also shared a corporate update, appointing Dr. Joseph C.N. Mkandawire as a non-executive director of its wholly owned subsidiary, Globe Metals & Mining Africa, in Lilongwe, Malawi. Altshuler said the appointment underscores GBM’s commitment to establishing Globe as a trusted development partner in Malawi.

“His leadership and insights are instrumental as we advance the Kanyika niobium project into development.”

This week, shares of Globe peaked at AU$0.08 on Thursday.