• LMG inks $11.5m in a placement to fast track construction at its 10,000tpa magnesium plant
  • Black Dragon announces a permitting update at its Salave Gold Project in northern Spain
  • Itech Minerals releases results confirming rare earth potential at its Eyre Peninsula Kaolin Project in South Australia 

 

Here are the five biggest small cap resources movers in early trade, Friday November 12.

 

LATROBE MAGNESIUM (ASX:LMG)

The $200m market cap magnesium project developer has announced the completion of an oversubscribed $11.5m placement to fast-track the construction of its 10,000topa magnesium plant in the Latrobe Valley, Victoria.

China — which produces around 85-90% of the world’s magnesium – has slashed production by 50% due to the ongoing power crisis. And prices are soaring.

Following the completion of several value engineering studies, LMG estimates that the current cost of its initial 10,000tpa plant will be reduced to $39m.

LMG said: “This successful placement provides LMG with the opportunity to bring forward its financial closure decision by some 3 months.”

The company has also been discussing the funding of the capital cost and believes that it will secure the $75m estimated cost through off-take project funding.

Construction on site will kick off in January 2022.

AVENIRA LIMITED (ASX:AEV)

(Up on no news)

Potash prices have also soared by up to 300% since the start of the year, sitting above US$700 per tonne (CFR Brazil Spot).

This gold focused explorer has a phosphate project called ‘Wonarah’ in the Northern Territory, which hosts the largest premium grade phosphate resources in Australia with a 15% P205 cut off.

In its latest market update to the ASX yesterday, the company flagged an upcoming scoping study which will focus on high value phosphoric acid product for LFP battery metals and fertislisers.

It is also continuing a strategic review of phosphate markets and is in discussion with potential strategic partners.

AEV has signed a deal with a company called Polyhedrous, which wants to farm into the Wonarah project in the NT.

Shares are up 19.05% to 2.5c at the time of writing.

BLACK DRAGON GOLD (ASX:BDG)

BDG announced an update to the progress being made with the Environmental Impact Assessment (EIA) at the Salave Gold Project by the Government of the Principality of Asturias in Spain.

Situated in the North of Spain, the project has an updated mineral resource of 1.03 million tonnes grading 5.59 g/t gold, containing 0.19 million ounces of gold.

Following the submission of the EIA in July, an initial review for procedural completeness was undertaken by the Ministry of Mines and the Ministry of Environment, after which the EIA, its non-technical summary and the supporting technical documentation were made available for public comment.

BDG said that given positive feedback received to date, the company will now undertake an updated Preliminary Economic Assessment (PEA) to reflect the design changes incorporated in the EIA and future operating plans, prior to defining the scope for a Definitive Feasibility Study.

This is expected to be completed in early 2022.

TAMBOURAH METALS (ASX:TMB)

(Up on no news)

This Julimar play received the grant of two additional tenements at its highly prospective Julimar North project yesterday.

TMB says the tenements are prospective for PGE’s, nickel, and copper totalling 63 sq km.

There has been little previous exploration on the projects which principally focused only on the search for bauxite.

Historic exploration data including historical geophysical data over the tenements is being evaluated and on ground sampling will begin shortly, the company said.

TMB will commence heritage and landowner access negotiations to expedite exploration activities on the projects.

ITECH MINERALS (ASX:ITM)

Itech is exploring and developing mineral assets formerly owned by Archer Minerals Limited (ASX:AXE). 

The company has received the first batch of analytical results from resampling of historical drilling at the Ethiopia prospect today, within its Eyre Peninsula Kaolin Project in South Australia.

ITM said the results have confirmed its view of the dual potential for high purity kaolin and coincident ion adsorption clay (IAC) rare earth element (REE) mineralisation.

Results have returned significant total rare earth element oxides in all 10 holes sampled with an average beneficiation to 180% in the clay fraction (<45µm).

The rare earths display significant enrichment of neodymium and praesidium (~23% Nd+Pr), which are critical in the production of permanent magnets for electric vehicles and renewable energy.

Managing director Mike Schwarz said: “The nature of high purity kaolin and REE mineralisation at Ethiopia opens the path for the potential of an extremely low-cost source of these two critical minerals.”

ITM shares have been up 18.75% to 28.5 cents at the time of writing.