The ASX closed at a record high today, albeit with a marginal 0.1% gain as gold miners and the technology sector were bullish. The positive close for the week marks the fourth straight week that the ASX has closed in the green.
With yesterday’s inflation data coming in higher than expected in the USA, commodity prices have been upbeat and there are early signs that the Fed may be losing control of its targeted inflation rate. Iron ore forecasts have continued to rise and there have been several analysts upgrading their price target for the number one export commodity here Down Under.
While we all know mostly how the big miners have performed, here are two small cap mining stocks on the ASX that have had a very bullish trading session today.
Best Mining Stocks Of the Week
Allegiance Coal Limited (ASX: AHQ)
Allegiance Coal Ltd is a Sydney based company that engages in the acquisition and exploration of coal tenements in Queensland. It holds interest in Back Creek, Telkwa Metallurgical Coal, Tenas Metallurgical Coal, and Kilmain projects. Its main investment focus is advanced, near production or producing projects, in coking coal, and in countries with a good investment record and low level of political risk.
AHQ has announced a planned production start date of June 2021 for its New Elk coking coal mine in southeast Colorado, USA. The New Elk Final Start-up Mine Plan has not changed from the mine plan announced in April 2020. The production of 22.2Mt of saleable Blue seam coal reserves and these are exciting times for Allegiance Coal.
AHQ shares have surged ahead by over 25% this week and by 14% just today. AHQ shares closed at $0.755 a share.
Eagle Mountain Mining (ASX: EM2)
Headquartered in the Nedlands, Eagle Mountain Mining Ltd. engages in the acquisition of Silver Mountain and its wholly owned exploration assets in Arizona and USA. The firm focuses on the strategic exploration and development of the Oracle Ridge Copper Mine and the highly-prospective greenfield (Silver Mountain) project.
EM2 shares have been on a roll since April 2021. The company then had announced further assay results from its ongoing drilling program at the Company’s 80% owned Oracle Ridge Mine Project in Arizona, USA, have returned the highest grades ever recorded at the Project with 34.4% Cu, 367g/t Ag and 26.2g/t Au over 0.4m in massive chalcopyrite zone. Since then, there have been periodic announcements on the Oracle Ridge with the latest being an acceleration of its exploration activities by mobilising a second diamond drill. The accelerated drilling program will concentrate on the discovery of strong mineralisation along the Leatherwood contact in the southern area of Oracle Ridge, opening up significant potential for further mineralisation. A resource upgrade is also possible with the infill drilling being undertaken with the aim of defining Measured Resources.
With so much happening over at EM2, shares seem to be supporting their narrative. EM2 shares closed at $1.17 a share on the back of a 11.4% surge today.
Looking for best mining stocks to invest on the ASX?
Get stock tips with our Market Experts. We help self-directed investors and self-managed super funds (SMSF) make smarter investment decisions and get better returns. Fill in your details and download your free Report instantly for Top 3 Mining Stocks to buy in 2021 by clicking here.
