ASX Resources Quarterly Wrap: Lithium, gas and gold plays rowing ahead

It’s the quarterly season again as the ASX market announcements page becomes increasingly flooded with update lodgements.

To save you the trouble of trudging through it all, we’ve wrapped up the highlights from some of the resources reports that caught our eye on yesterday’s final day.

Comet Ridge (ASX:COI)

COI is developing the Mahalo Gas Hub assets in QLD to provide material gas supply for Australia’s east coast gas market.

The explorer secured an additional 66km2 immediately north of Maholo East and west of Mahalo Far East during the quarter with the new block residing in the high-quality fairway that has been delineated by geological mapping.

According to COI, the new block does not contain any Queensland Government domestic market supply obligations, meaning that any gas produced can be freely sold into either the domestic or export LNG markets.

Planning work with Jemena for the Mahalo JV pipeline connection is ongoing with a plan to begin both FEED studies concurrently while Mahalo East pilot well drilling is set to kick off later this quarter.

COI finished the quarter with $16.8m in cash at the end of June.

Toubani Resources (ASX:TRE)

TRE delivered on a significant objective in the June quarter with a highly successful resource definition program resulting in an increased to indicated resources at the Kobada gold project, which now sit at 2Moz in total.

To achieve this strong result, along with the 10% increase in indicated grade, TRE says is an ‘excellent outcome’ that sets the Kobada DFS up for a positive outcome, due later this year.

The resource upgrade followed a comprehensive definition drilling campaign that delivered multiple compelling intercepts including:

71m at 1.86 g/t gold from 79m, including 15m at 4.04g/t gold;
57m at 2.48 g/t gold from 85m, including 1m at 25.7 g/t gold; and
24m at 5.75 g/t gold from 131m, including 2m at 57.4 g/t gold.

Significant upside remains outside the Kobada mineral resource area with around 40km of the +50km regional-scale shear zones yet to be drilled, as well as at depth at Kobada where drilling is also limited.

TRE finished the quarter with $2.14m in cash at the end of June.

First Lithium (ASX:FL1)

During the June 2024 quarter, First Lithium continued to progress its Blakala lithium project in Mali with further high-grade lithium intersections from 15 diamond holes and 16 reverse circulation pre-collar holes.

Results such as 11.78m at 1.61% Li2O and 19m at 1.51% Li2O follow on from the excellent analytical results returned for the first 24 diamond drill holes.

It also progressed metallurgical test work that seeks to determine lithium concentrate recovery rates at Blakala for comparison with those at the neighbouring Goulamina project, which shares a common history as being the only two Tier-1 priority lithium targets in Mali ranked by CSA Global in 2008.

Other activity includes appointing Pivot Mining Consultants to manage and conduct the maiden mineral resource estimate, completing a rights issue to raise $2.16m and lodging the renewal of exploration permits with the Mali Ministry of Mines.

“Identifying further high grade Li2O intersections at Blakala, as well as the appointment of a geological services group, Pivot Mining Consultants, is a further great step forward for the company,” managing director Venkatesh Padala said.

“With metallurgical testwork progressing under their guidance and the maiden resource estimate (MRE) expected soon, the quality, scale and scope of the project will be defined and released to the market in the coming months.

“Looking ahead, once the maiden MRE is released, it is proposed a further expanded drilling exploration program will take place which is fully funded via the latest rights issue completed by FL1.

“In the nine short months since listing, the company has achieved a great deal via completion of the exploration program, commencement of met work and extended funding, with the forthcoming definition of the project to create the base from which the company will grow in the future.”

Latin Resources (ASX:LRS)

In the three months to June 30, 2024, Latin Resources shortlisted offtake proposals with prepayment funding attached from tier-1 parties for ~50% of production from its Salinas project in Brazil and is continuing discussions with debt and equity providers to complement its funding strategy for low-cost capital.

The company also largely completed technical inputs for the definitive feasibility study, which is developed around Salinas being a large, low-capital and low-operating cost project and is expected to be released in the current quarter.

LRS says the DFS will confirm a material reduction in strip ratio given its knowledge of the orebody and completed mine plan optimisation work.

This was accompanied by an increase in resources to 77.7Mt at 1.24% Li2O, with 95% of the Colina resource now contained within the high confidence measured and indicated categories, enough to support a high-value, high volume and long life mine.

The company added that while exploration expenditure for the quarter totalled $18m, this has now concluded, allowing it to focus the remaining $21m in cash as of June 30, 2024 on supporting development activities including the DFS and early works.

Post quarter, LRS expects to define a maiden resource at the Planalto discovery that will increase resource tonnes at Salinas.

Environmental and development permits are also progressing with approvals expected prior to a final investment decision in Q4 2024 and construction on track to begin in Q1 2025.

QX Resources (ASX:QXR)

At the Liberty lithium brine project, QX Resources’ drilling and geophysics confirmed a large brine basin with multiple brine horizon targets intersected over 400m vertically.

This work also confirmed geological similarities with the nearby Silver Peak lithium brine producer Albemarle, with encouraging initial lithium assay results, aquifers and salinity.

Lithium brine specialists have proposed additional drilling to intersect deep lithium brines in the centre of the basin, in a more favourable setting, further west of recent drilling.

QXR is also continuing discussions with US-based battery supply chain participants, including Stardust Power, a development stage American manufacturer of battery-grade lithium products.

Over at the company’s central Queensland gold projects, it has started a reassessment of two shuttered gold mines that were last operated when the gold price was less than $500/oz.

It is also planning to carry out trenching at its Big Red project where historical trenching returned high-grade results including 9m at 5.9g/t gold. Mineralisation remains open along strike under cover.

Separately, QXR is planning a detailed rock chip sampling program over iron ore samples with up to 58.5% iron in rock chip samples at its Western Shaw project in the Pilbara.

Raiden Resources (ASX:RDN)

During the quarter, Raiden Resources made preparations for further work at its Andover South, Andover North and Mt Sholl nickel-copper projects.

At Andover South, the company completed a heritage survey that found no areas of cultural significance.

Discussions are currently underway with drilling contractors, with the goal of starting drilling once the regulatory conditions for drilling have been approved.

Heritage surveying at Andover North has also been completed with planning ongoing for further target definition work.

Over at Mt Sholl, partner First Quantum continued to plan activities with the goal of starting drilling this quarter.

RDN also entered into agreement that allows Mallina Co Pty Ltd to earn up to 75% of the gold rights for the Arrow project in the Pilbara by meeting certain obligations.

The company will retain 100% of all lithium-caesium-tantalum and associated mineralisation in the project.

TG Metals (ASX:TG6)

During the quarter, TG6 Metals’ Burmeister was confirmed as a significant lithium deposit with the definition of an exploration target of 15.6-20.1Mt with a grade range of 0.97% to 1.19% Li2O.

It also received Program of Work approvals for maiden drilling at the Jaegermeister prospect, which has since started, while additional soil sampling has defined a further soil anomaly, increasing the number of high priority drilling targets to five.

The company has also started metallurgical test work on diamond drill core from Burmeister and retains a strong cash position with $8m at bank as of June 30, 2024.

At Stockhead, we tell it like it is. While First Lithium, Latin Resources, Qx Resources, Raiden Resources and TG Metals are Stockhead advertisers, they did not sponsor this article.