2 ASX Small Caps for Big Gain

Team Veye | 13th MAy 2020

Navarre Minerals Limited (ASX: NML)

Recommendation

Buy

Sector

Mining

Navarre Minerals Limited (ASX: NML) is an Australia-based resources company. The Company is a mineral exploration company in Victoria, Australia. The Company is focused on gold exploration. The Stawell Corridor Gold Project comprises two exploration licenses: Tatyoon and Ararat. It is located between 10 and 70 kilometers south of the Stawell Gold Mine. The Company focuses on exploration of the Stawell-style Irvine and Benno gold prospects. The Tandarra Gold Project is a greenfields gold discovery under shallow cover, located approximately 40 kilometers north of the Bendigo Goldfield. The Company’s Western Victoria Copper Project captures multiple targets in approximately 130 kilometers of Stavely Arc volcanics, including the Eclipse, Lexington, Glenlyle and Pollockdale prospects (Profile source: Reuters)

From the Company Reports

 

Quarterly Activities Report for Period Ended 31 March 2020

Navarre Minerals Limited (Navarre or the Company) on 30 April 2020 reported on its activities for the March 2020 Quarter.

(Graphic Source – Company Reports)

Stawell Corridor Gold Project (Navarre 100%)

Irvine basalt dome 

  • Significant new results received for first eight holes of an ongoing diamond drilling program at Resolution Lode confirm gold mineralisation extends beyond 300m depth, remaining open down-plunge.
  • Best result (not true width) of 7.7m @ 5.6 g/t Au from 141.8m and 3.9m @ 4.4 g/t Au from 154.8m within a broader zone of 18.7m @ 3.4 g/t Au recorded in southernmost hole, RD025.
  • Gold occurs in two higher-grade lode channels (shoots), that contain remarkably consistent gold tenor of between 4 g/t and 6 g/t below the base of oxidation. 
  • The significant broad zone of gold in RD025 suggests the lode channel is thickening and plunging gently towards the south – this area is the focus of the ongoing drilling program.

 

Langi Logan basalt dome 

  • 800m-spaced reconnaissance air-core (AC) drilling, testing the margins of the Langi Logan basalt dome for a similar gold endowment to Irvine gold discovery, completed for 50% of the total 12km strike of the prospect – multiple zones of elevated gold will require follow-up infill drilling.
(Graphic Source – Company Reports)

Tandarra Gold Joint Venture (Navarre 49%) 

  • New zone of gold mineralisation discovered in reconnaissance AC drilling (the Lawry Zone) – 31m @ 1.2 g/t Au, including 1m @ 10.2 g/t Au at drill hole refusal in mineralised quartz vein. 
  • Tomorrow and Macnaughtan gold zones extended southwards by 1.2km and 400m, respectively, through reconnaissance AC drilling.

Stavely Arc Projects

Glenlyle Project (Navarre 100%) 

  • Silver-gold zone at the Morning Bill prospect expanded by AC drilling to approx. area of 350m by 300m and remains open to the south and at depth. 
  • Gold up to 3.6 g/t and silver up to 12.4 g/t recorded, with several holes finishing in mineralisation. 

Eclipse Prospect (Navarre 100%) 

  • Diamond drilling, testing a largely induced polarisation (IP) geophysical chargeability anomaly below a supergene blanket of enriched copper, intersects significant sulphide mineralisation, mainly pyrite + chalcopyrite + sphalerite, in all three holes – results expected early June.

Corporate 

  • COVID-19 responses implemented, including reducing the scope of the current drilling campaign. 
  • Navarre is fully funded to continue its ongoing exploration programs, with $6.7 million cash as at 31 March 2020. 
  • Navarre applies for three blocks in the North Central Victorian Ground release tender, north on-strike of the Fosterville Gold Mine, owned by Navarre’s largest shareholder, Kirkland Lake Gold (NYSE / TSX: KL | ASX: KLA).
(Chart source: TradingView)
(Chart source: TradingView)

New Gold Results Grow Resolution Lode at Depth 

Stawell Corridor Gold Project, western Victoria

Navarre Minerals Limited (ASX: NML) (Navarre or the Company) on 27 April 2020 reported significant new drilling results from Resolution Lode on the eastern flank of the Irvine basalt dome, part of the 100%-owned Stawell Corridor Gold Project, located in western Victoria

Highlights 

  • Significant new results received for the first eight holes of an ongoing diamond drilling program testing for depth extensions of shallow gold mineralisation discovered at Resolution Lode. 
  • Gold mineralisation now expanded beyond 300m depth and remains open down-plunge to the south. 
  • Highlight intersections (not true widths) include: 
  • 7m @ 5.6 g/t Au from 141.8m and 3.9m @ 4.4 g/t Au from 154.8m within a broader zone of 18.7m @ 3.4 g/t Au1 in RD025 
  • 5m @ 6.1 g/t Au from 373.2m and 2.4m @ 6.0 g/t Au from 428.5m in RD016 
  • 6m @ 5.5 g/t Au from 301.9m, contains a few specks of visible gold in RD015 
  • 4m @ 4.4 g/t Au from 293.7m in RD018 
  • 1m @ 3.1 g/t Au from 204.3m in RD019 
  • The significant broad zone of gold intersected in RD025 suggest the lode channel is thickening and plunging gently towards the south.
(Graphic Source – Company Reports)
  • Gold occurs in two higher-grade lode channels (shoots), that contain remarkably consistent tenors of gold of between 4 and 6 g/t below the base of oxidation.
  • Results provide further evidence that the gold shoot dimensions at Resolution Lode are similar to those mined at the multi-million ounce Magdala gold deposit, on-strike 20km further north.
  • The ongoing diamond drilling program has been adjusted to target the projected positions of the shallow south plunging gold shoots at depth.
  • Navarre remains fully funded to continue its systematic drill testing of the geometry and depth potential of gold mineralisation at Resolution Lode, with a current working capital balance of approximately $6.7 million. 1 Full extent of mineralised zone
 Navarre Minerals Limited  (NML)

Stock Overview

SectorMaterials
RiskLow to Medium
Market Cap$50.22million
Daily average Volume897,082
EPS (FY)$0.002
PE RATIO
Yearly Dividend Yield 
Target Price (s) T1 and T2T1 $0.16 T2 $0.22
Stop Loss$0.09
RecommendationBuy
52 weeks High$0.15
52 weeks Low$0.05
DirectorsMr Geoff McDermott
Non-executive Directorss Mr John Dorward
Mr Colin Naylor

Veye’s Take

Navarre Minerals is collaborating with the CSIRO in cutting-edge, innovative research on its flagship Stawell Corridor Gold Project. Its Stawell Corridor Gold Project contains at least seven potential “Magdala” analogues in a 60km long tenement package south, on-strike of Stawell’s Magdala Gold Mine. The research will aim to identify potential high fluid flow sites at its Irvine and Langi Logan basalt dome projects for drill testing. The Company is searching for gold deposits in an extension of a corridor of rocks that host the 5Moz Stawell and 1Moz Ararat goldfields – “The Stawell Gold Corridor,” where seven potential Magdala gold deposit analogues have been identified within the Company’s 60km long tenement package. Navarre has shown terrific diamond drill results from Resolution Lode which are providing strong evidence for gold-shoot development, similar to that mined on the flanks of the Magdala basalt dome at Stawell’s 4 million-ounce Magdala Gold Mine, on-strike 20km further north. NML is currently unprofitable but has reduced losses over the past 5 years at a rate of 7.7% per year. NML’s short term assets ($9.0M) exceed its short term liabilities ($618.4K). It has no long term liabilities. The Company is debt free. It did not have any debt for the past 5 years. On the long term, chart MACD has crossed over. With very strong support nearby at $0.10 we are just waiting for RSI to turn. The move could possibly be quite explosive. The stock may consolidate or may even retrace a bit from here, but it can have the potential of giving good returns in the short to medium term. Veye recommends a “Buy” on “Navarre Minerals Limited” at the current price of $0.12

ClearVue Technologies Limited (ASX: CPV)

Major Milestone – CPV IGU Prototype Increases Power Output by 33%

Smart building materials company ClearVue Technologies Limited (ASX: CPV) (ClearVue or the Company) on 7 May 2020 announced successful trials of an improved photovoltaic (PV) integrated glazing unit (IGU) design showing a 33.3% increase in ClearVue’s power performance to 40 watts per square metre (at peak).

Highlights

  • Improved ClearVue PV IGU design increases power by 33% to 40w per sqm (peak) 
  • New design improves on the existing technology platform 
  • Work was completed in California with solar specialists D2 Solar 
  • ClearVue working towards product testing with IEC and UL during 2021 in preparation of inclusion of the improved design into the ClearVue product portfolio

 

(Chart source: TradingView)

ClearVue signs Collaboration Agreement with eLstar Dynamics BV

ClearVue Technologies Limited (ASX: CPV) (ClearVue or the Company) on 14 April 2020 announced that it had entered into a Collaboration Agreement with eLstar Dynamics B.V in the Netherlands (eLstar).

Highlights 

  • ClearVue signs Collaboration Agreement with eLstar Dynamics B.V. in the Netherlands 
  • The Companies plan to develop a trial project that combines both the ClearVue PV technology with eLstar’s electrophoretic dynamic glazing technology 
  • The end-product is to be a market leading, wireless smart window that is capable of energy production and lighting control 
  • Subject to a successful trial the Companies are to explore a joint venture, other arrangements or combined licensing and sales opportunities.

eLstar is a world leader in the development of a groundbreaking dynamic/switchable glazing technology based upon electrophoresis that combines electrophoretic responsive inks, transparent electrophoretic interlayer substrates, and proprietary control software and hardware to offer unprecedented contrast ratio’s, fast switching, dimmability and low-power demands compared against other switchable glazing solutions that are on the market. (Data Source – Company Reports)

Veye’s Take

This is a major milestone for ClearVue with an uplift in power from 30w per square metre peak to 40w per square metre peak representing a 33% increase in performance. The uplift in power was achieved by fine tuning the ClearVue IGU product design without changing the fundamental structure or underlying technology in any material way. This increase in power in the current design will have an immediate material impact on the payback period for customer projects as well as carbon embodiment for the ClearVue product. We had reviewed the stock on 16 July 2019 at the price of $0.30 and had recommended staying away. It had been falling ever since and it was clearly mentioned that breaking its last support at $0.155 could lead it to single-digit cents. Now after a massive fall, the stock is staging recovery and has broken the trendline on the upper side. The stock may still correct from here but in the medium to long term, it can give very good returns. Veye recommends a “Speculative Buy” on “ClearVue Technologies Limited” at the current price of $0.16

Disclaimer

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