Eye on Lithium: ERW, FRS and these other ASX lithium stocks crushed it in May. Here's why

How about a handful of the most notable lithium-based stocks to have gained in May? (Yes, there were quite a few, lithium doubters). Read on…

Errawarra Resources (ASX:ERW)

May gain: 161%

Errawarra Resources (ASX:ERW) made news earlier in May thanks to a touch of “nearology” amid a “stacked pegmatite swarm” discovery at its 100km2+ Andover West project in the Pilbara.

That’s a highly prospective project about 40km east-southeast of Karratha, WA, and just south of Azure Minerals’ (ASX:AZS) Andover LCT Pegmatite project (now owned by SQM/Hancock).

ERW located a roughly 1.6km x 1km pegmatite swarm with a highly anomalous lithium soil trend that it notes has peak 325ppm Li2O. The pegmatites are stacked, low angle and north dipping.

A second strong, anomalous Li soil trend with a peak of 299ppm lithium was also been found.

Along with the Azure ‘nearology’ aspect, the soil trends are along strike and just 1.7km from Raiden Resources’ (ASX:RDN) lithium pegmatite discovery that has reported 3.8% Li2O rock chip.

Forrestania Resources (ASX:FRS)

May gain: 156%

Forrestania is primarily known as a lithium, nickel and gold hunter, but in mid to late May is was actually a diverstifaction into iron ore that pushed its share price into the double-bagging limelight.

The company has announced it’s entered into an option agreement with shareholders of Netley Minerals to acquire 100% of issued shares in Netley, which is the holder of highly prospective iron ore tenements right next to Mineral Resources’ (ASX:MIN) Koolyanobbing operations.

Potentially big for FRS, that, which enters into a three-month option period, in which the company will drill test several iron ore targets identified by Netley and its advisors.

The potential is there, with surveys and rock chip sampling correlating with the geophysical trends, indicating mineralisation potential.

All else, including infrastructure – road, rail, port and service centres – lines up well.

Meanwhile, the company lithium-hunting activities are reportedly still going strong, in particular its flagship, titual Forrestania lithium, nickel and gold project in WA, and also its Hydra lithium project in Quebec, Canada.

Burley Minerals (ASX:BUR)

May gain: 115%

Perth-based minerals explorer Burley had a good month, which, can partly/largely be put down to some significant capital raising that intends to pour into its most promising projects.

It was an SPP (share purchase plan) affair that has resulted in an additional $1.3 million (before costs) stacking the coffers.

The funds will be allocated to progressing maiden drilling ops at both Broad Flat Well and Cane Bore Iron Ore Projects in the Hamersley Iron Ore Province, WA, as well as further exploration targeting on its Canadian Lithium Projects.

Coolabah Metals (ASX:CBH)

May gain: 83%

This minerals explorer has a focus on copper, gold, base metal assets and group two non-metallic minerals throughout Australia.

However, it’s also active in exploring lithium projects located in Canada.

Why did it perform so well in May? We can’t say that lithium was the specific driver here – recent positive gold drilling results and the acquisition of the Mundi Mundi fluorite project seems more the source of positivity.

That said, it has a strong battery metals narrative overall, and it maintains a strong presence in lithium hotspot James Bay in Canada, through its Hampden lithium project, not far at all from Patriot Battery Metals’ (ASX:PMT) Corvette resource.

Perpetual Resources (ASX:PEC)

May gain: 67%

PEC flexed pretty hard in May.

For some good context, Stockhead‘s Jess Cummins narrowed in on Brazil’s Lithium Valley activities (where PEC’s focus lies) and dug deeply with this article:

This ASX explorer is looking to drill new pasture inside Brazil’s booming Lithium Valley

Well worth a read, that, in which it covers nearology aspects of note (ie. Sigma Lithium’s Grota do Cirilo project and Lithium Ionic’s Banderia project) in relation to PEC’s newly acquired, 12,000 hectare ground, where it’s now kicked off maiden drilling at the Itinga project.

PEC, by the way, also operates the Beharra silica sand development project in WA about 300km north of Perth, and had some decent news regarding that.

Namely, a very healthy tax rebate from the Australian Government Department of Industry, Science and Resources, granting it an AusIndustry R&D tax incentive of $161,473.

The company says it’s in recognition of its “innovative processes undertaken to explore additional impurity reduction at the Beharra high grade silica sand project”.

This funding will be used to help advance the company’s various exploration projects – which very much includes its lithium ventures.

And one to watch in June – Galileo Mining (ASX:GAL)

As an addendum, this one caught our attention today.

Galileo Mining (ASX:GAL) may well prove to be a notable June lithium stock gainer after announcing some big news regarding a deal with none other than Aussie mining giant Mineral Resources (ASX:MIN).

The company’s wholly owned subsidiaries Norseman Resources and Ganymede Resources (together “Galileo”) have entered into a farm-in and JV agreement with a 100% owned subsidiary of MinRes.

Under this agreement, Galileo will, subject to the satisfaction of the completion terms, sell 30% of all lithium rights held by it on the Norseman tenement package for $7.5m cash consideration.

MIN can sole fund $15m of expenditure over four years to increase its stake in the JV to 55%, and then boost that to 70% by sole funding through to decision to mine.

There are no lithium resources on the project yet, but MIN must like what it sees.

Galileo’s MD Brad Underwood is excited. And he said as much, adding further context:

“We are excited to add a lithium exploration joint venture to our ongoing exploration programs for PGEs and nickel at our Norseman project [WA].

“The Norseman project has excellent lithium potential and is strategically located in the world’s most prospective region for lithium. The project’s outstanding location relative to existing infrastructure provides a short cut to development for any lithium resources discovered through the joint venture.”

And as Reubs wrote in Monsters of Rock:

It ostensibly looks a great deal for nickel-copper hunter GAL, which retains control over all the other minerals on the property.

The agreement is the latest in a series of WA land grabs by Ellison-led mining conglomerate MIN, which spent $840 million last year to build stakes across several junior lithium stocks and acquire the Bald Hill mine near Kambalda.