- A8G will kick off exploration activities this week at the ‘Mt Peake’ lithium project in the NT
- Chinese lithium giant Yahua makes $1.05m investment in Eastern Iron
- A notable morning for silica sand players Carbine (+17%), VRX (7%) and Industrial Minerals (12%)
Here are the biggest small cap resources winners in early trade, Friday September 17.
AUSTRALASIAN GOLD (ASX:A8G)
This newly listed explorer is hedging bets by chasing gold (not hot), copper (hot) and lithium (scorching hot) simultaneously.
Maiden drilling at ‘May Queen’ in Queensland confirms the presence of high-grade gold and identified several exciting follow-up drill targets.
More importantly for the punters, A8G says it will kick off exploration activities this week at the ‘Mt Peake’ lithium project in the North Territory – right next door to developer Core Lithium’s (ASX:CXO) ‘Anningie’ and ‘Barrow Creek’ projects.
$700m market cap Core is expected to be Australia’s next lithium producer.
“On Sunday we will commence exploration at our lithium project in the Northern Territory where we hope to make a transformative lithium discovery in the Arunta pegmatite province,” managing director Dr Qingtao Zeng says.
The ~$14m market cap stock is now up 120% on its May IPO price of 20c per share.
CARBINE RESOURCES (ASX:CRB)
(Up on no news)
In mid-July, this former shell company acquired the ‘Muchea West’ silica sands project, a short 40km drive from Perth.
While most demand comes from the booming construction sector, high-quality silica sand can also be used in the glass, electric vehicle, and big battery sectors.
Muchea West is directly adjacent to near-term developer VRX Silica’s (ASX:VRX) ‘Muchea’ project.
It was a notable day for silica sand players, with $125m market cap VRX and newly listed Industrial Minerals (ASX:IND) also up 8% and 13%, respectively, in early trade.
Carbine has submitted applications to the WA Department of Mines for an ~8,500m drilling program to enable estimation of a maiden resource.
The $11m market cap stock had $3.24m in the bank at the end of June.
EASTERN IRON (ASX:EFE)
Don’t be confused, punters. Eastern Iron has pivoted to lithium, which explains why the $27m market cap stock can gain ~20% as iron ore prices circle the drain.
Chinese lithium giant Yahua —which has partnered with EFE to find and develop Aussie lithium projects — is now making a $1.05m investment in the company.
A further $2.52m will be raised from sophisticated and professional investors, EFE says.
“We welcome Yahua as a cornerstone investor of Eastern Iron and are delighted with their financial commitment towards progressing a strategic partnership to acquire and develop Australian lithium projects,” chairman Eddie King says.
“Given the current global demand for lithium and battery metals, we believe an investment from one of the largest lithium battery material producers in the world validates our strategy and demonstrates our willingness to provide green energy solutions for future generations.”
POLYMETALS RESOURCES (ASX:POL)
The Guinea-focused gold explorer has bounced back from yesterday’s losses to finish on par for the week.
The coup-lovin’ African nation of Guinea is not the safest jurisdiction to be in at the moment.
Having said that, the self-imposed military leader is urging miners to support the local economy, reassuring the industry “that production would be allowed to continue unhindered following a September 5 coup”, according to the Fin Review.
POL — which says site activities “remain unaffected by recent political activities” — has a bunch of drill assays pending from the ‘Alahiné’ gold project.
THOR MINING (ASX:THR)vrx
A newly released company presso hit the mark with investors, with the copper, gold and uranium explorer rising 11% in early trade.
The $15m market cap stock – fully funded for its rest-of-2021 exploration program — is up 100% over the past month.
Drill is due to kick off the ‘Ragged Range’ gold project in the Pilbara in early October. The dual-listed explorer holds a 100% interest in uranium and vanadium exploration assets in Colorado and Utah, where drilling is also scheduled to begin shortly.