Resources Top 4: Esperance rare earths play rockets +130%, junior offloads project to BHP for $9.8m

Metals Hawk reports wide zones of clay hosted REEs grading up to 4120ppm at ‘Fraser South’ project
Ragnar Metals snaps up four lithium and REE projects, unloads ‘Tullsta’ nickel assets to mining major BHP for $9.8m
Cassius Mining “extremely optimistic on the future success” of ‘Soalara’ limestone project

Here are the biggest small cap resources winners in early trade, Monday June 26.

METAL HAWK (ASX:MHK)

Aussie small caps are flocking to the emerging rare earths (REE) hotspot of Esperance in WA, thanks to the region’s large swathes of easy drilling, REE-enriched clays which sit close to surface.

MHK is the latest junior to get a big bump – breezing through 100% in early trade — after reporting wide zones of clay hosted REEs grading up to 4120ppm at the sizeable ‘Fraser South’ project.

The shallow, 35-hole maiden drill program included three holes with grades above 2000ppm, and nine holes with grades above 1000ppm.

It is a big target as well. The holes were punched in a single line, spaced 400m apart to test a 15km long zone.

Within that, the most significant zone of mineralisation is seen at the 2km-long Bozwood prospect, where results included a highlight 26m at 1526ppm.

MHK will now test select samples to see if REEs can be leached from the clays. If the results are good, more drilling could follow.

MHK also has another interesting iron in the fire – namely, exploration joint ventures worth $9.75 million with IGO (ASX:IGO) and Chalice (ASX:CHN) gold spinoff Falcon Metals (ASX:FAL).

The $12m capped junior had $1.35m in the bank at the end of March.

RAGNAR METALS (ASX:RAG)

Sweden-focused RAG had been quiet in 2023, until today, when it snapped up four lithium and REE projects and unloaded the ‘Tullsta’ nickel assets to mining major BHP for $9.8m.

The lightly explored ‘Halleberget’ and ‘Bergom’ hard rock lithium projects include low grade, but promising, surface sampling results like up to 0.473% Li2O, 196 ppm Ta and 4.48% Sn.

The ‘Olserum’ and ‘Gruvhagen’ REE projects come with historical exploration results of up to 3.7% TREO, including very high heavy REE and Nd/Pr ratios.

Meanwhile, the company will sell its more advanced Tullsta project, also in Sweden, to mining behemoth BHP for a tidy $9.8m.

RAG will retain a 1% smelter royalty, which BHP can buy for another $10m.

“The sale of Ragnar Metals Sweden AB, with the foundation Swedish licences, to BHP validates the company’s original strategy and the potential of the Tullsta nickel project,” RAG exec Eddie King says.

“This transaction provides exceptional value for the company with a substantial initial cash injection and exposure to production through the royalty.

“I am excited to continue working with BHP to finalise the transaction and then re-direct our attention to exploring further critical mineral opportunities in Sweden.”

CASSIUS MINING (ASX:CMD)

80% of drill assays from the ‘Soalara’ limestone project in Madagascar have returned an average grade of 97.44% calcium carbonate, classifying it as “high purity” limestone.

High (97-98.5%) to very high purity (+98.5%) limestone sequences remain open at 100m depth in all 9 holes, the company says.

A resource is due in July.

Limestone is widely used in construction, agriculture and in industrial materials. According to these unverified reports, the $US76.2-$90bn market is expected to grow to reach US$100-$115bn between 2028-2030.

Soalara is now showing the quality CMD always believed it had, says CEO James Arkoudis.

“With all nine vertical core holes to date confirming flat-bedded geology, encountering multiple thick sequences of Limestone at very shallow depths in every single hole in the two highest categories of purity and remaining open at depth in every hole, we are extremely optimistic on the future success of the project.

“With the initial MRE scheduled for July, we are confident the outcome will raise many options for our forward work program, including consideration of development plans with or without potential JV partners.”

CMD also has the less advanced Chenene hard rock lithium project in Tanzania, where a trenching program is planned.

Meanwhile, a tussle with the Ghanian government over the Gbane gold project is reaching a head. CMD anticipates launching legal action sometime in 2023.

The $13m capped stock is up 55% year-to-date. It recently raised $1.5m via placement at 1.7c per share.

PVW RESOURCES (ASX:PVW)

(Up on no news)

The George Bauk-led explorer is seeing some love in early trade as punters look for the next big thing in the Gascoyne, one of WA’s hottest REE and lithium provinces.

During the March quarter PVW secured 316km2 of early stage exploration ground in the heart of the province, home to +$100m capped explorers/ project developers like Delta Lithium (ASX:DL1), Dreadnought Resources (ASX:DRE) and Hasting Tech Metals (ASX:HAS).

The stock is now planning initial reconnaissance, ahead of geophysical surveys and potential drilling campaigns.

The $7m capped stock is down 30% year-to-date. It had a $4.4m in the bank at the end of March.

READ: These stocks have snapped up prime hunting ground in WA’s new critical minerals region