Resources Top 5: A pegmatite bonanza and more James Bay lithium action

BMG Resources hits pegmatite in multiple drill holes at the under-option Bullabulling project
Rubix Resources to acquire the Ceiling lithium project in the James Bay region of Quebec, Canada
Hammer Metals pulls up 57m at 1% copper from surface, plus a smattering of gold, cobalt and rare earths

Here are the biggest small cap resources winners in morning trade, Wednesday May 24.

BMG RESOURCES (ASX:BMG)

WA gold-lithium explorer BMG has hit pegmatite in multiple drill holes at the under-option Bullabulling project, including a highlight 28m from 2m depth.

Pegmatite is a type of rock that can contain lithium spodumene.

Assays from the 20-hole, 1485m program are expected in the coming weeks, the company says, with the Ubini and Purple Panda prospects emerging as early targets.

In February, BMG entered into a four-month binding option agreement to acquire Bullabulling.

“Assays are due in coming weeks that will help to inform the company’s decision regarding its option to acquire Bullabulling, which is open until mid-June,” BMG MD Bruce McCracken says.

“Coolgardie has a long history of gold production and an increasing significance as one of Western Australia’s most prospective lithium regions.

“The Bullabulling project presents an opportunity for BMG to acquire an early stage exploration project in the neighbourhood of multi-generational mining operations.”

This follows a maiden 518,000oz resource for the Abercromby project in April, delivered at a discovery cost of just $8.35 per ounce.

The resource comprises 354koz @ 1.17g/t Au (open pittable) and 164koz @ 3.09g/t Au (underground) at the Capital deposit, with 68% in the higher confidence indicated category.

70% of ounces are within 200m of surface, with mineralisation ‘open’ at depth and along strike.

Abercromby was acquired by BMG in 2020 after sitting idle in the portfolio of mining majors for much of the last 20 years, despite historic hits at Capital like 57.5m @ 5.73g/t Au from 80m.

The project – a stone’s throw from the Wiluna (10Moz) and Jundee (10Moz) operations — is already on a mining lease.

BMG plans to get started on mining studies, alongside more drilling at Capital and other nearby targets.

The $14m capped stock is flat year to date.

READ: ‘I don’t think people expected +500,000oz’: BMG’s Bruce McCracken talks upside at Abercromby

RUBIX RESOURCES ASX:RB6)

The explorer will acquire the Ceiling lithium project in the James Bay region of Quebec, Canada, from celeb investor Tolga Kumova and serial vendor DG Resource Management (DGRM).

Ceiling covers a 25km strike-length of the spodumene-bearing Wemindji greenstone belt.

DGRM, which will be employed by RB6 to design/execute field and drilling campaigns, has now sold ground in James Bay to a bunch of ASX-listed stocks, including Patriot Battery Metals (ASX:PMT), Recharge Metals (ASX:REC), Intra Energy (ASX:IEC), and Loyal Lithium (ASX:LLI).

“We are very excited to begin exploration of the Ceiling project, which has had minimal historical exploration for any commodity,” DGRM says.

“With spodumene pegmatites located on trend to the west of the project and to the east of the project, we believe the prospectivity of Ceiling can be considered exceptional.”

RB6 will pay Kumova and DGRM up to comprising $200,000 cash, 12.5m shares (worth $3.25m at current prices), and 15m options at 20c (worth $3.9m), exercisable on/before June 2025.

The share price is currently 26c.

Vendors will get an additional 12.5m shares if RB6 pick up at least five rock chips grading +1% lithium, and another 12.5m shares on the delineation of a +10Mt at 1% lithium resource.

A 2% net smelter royalty is also in place.

Tightly held, $8m capped RB6 is up 100% year-to-date.

DESOTO RESOURCES (ASX:DES)

This late 2022 listing is chaired by exploration veteran Paul Roberts, the man who turned $3m capped gold minnow Predictive Discovery (ASX:PDI) into a $300m, 4.2Moz project developer.

That’s a 9900% return.

DES is focused on the Fenix lithium-gold-copper project in the NT, where a review of old drill core has uncovered the position of a major gold-bearing shear zone, called the Fenton Shear Zone (FSZ).

The FSZ gold target is 20km long and comparable in scale to the nearby 17Moz Pine Creek Shear Zone, DES says.

Limited, wide spaced drilling by Barrick Gold in the ’90s along the FSZ hit 20m at 1.74g/t.

Ground geophysical programs will kick off in June to define targets under cover for maiden diamond drilling program.

$7m capped DES is up 10% year-to-date.

ODESSA MINERALS (ASX:ODE)

(Up on no news)

ODE has three projects in the Gascoyne prospective for REEs and lithium; Gascoyne East, Lockier Range, and Lyndon.

A 3000sqkm land package makes it one of the biggest holders in the emerging lithium region, home to Delta Lithium’s (ASX:DLI) Yinnetharra project and Voltaic Strategic Resources’ (ASX:VSR) Ti Tree discovery.

Lyndon also immediately abuts Dreadnought Resources’ (ASX:DRE) big REE discovery at Yin.

The $9m capped minnow is up 20% year-to-date.

HAMMER METALS (ASX:HMX)

HMX has pulled up 57m at 1% copper from surface – plus a smattering of gold, cobalt and rare earths – at Hardaway, part of the Mt Isa project portfolio in QLD.

It follows other good hits from Hardaway, including 30m at 1.1% copper from 48m and 26m at 0.14% REE from 34m announced in February.

The company has also uncovered a new high-grade REE zone at the Easy Life Prospect, 1.2km southwest of Hardway, where rock chip sampling has assayed up to 1.2% REE and 1.6% copper.

Follow-up drill planning for the 2km long trend at Hardaway is underway.

“With this drilling still being very wide-spaced, a follow-up program for Hardway is now being designed with the aim of optimising the discovery and focusing in on zones with the best potential to add metal inventory at higher grades,” HMX MD Daniel Thomas says.

“Pleasingly, a geological review of this tenement has identified a new zone of higher grade REE and copper mineralisation at the Easy Life Prospect, which lies just 1.2km southwest of the main Hardway workings. This will be a priority target for follow-up exploration.

Meanwhile, drilling at the South Hope, Mascotte, Mascotte Junction and Stubby copper prospects is expected to commence within the next fortnight.

“With drilling soon to also commence at our high-grade Mount Hope copper targets, shareholders can look forward to strong upcoming news-flow from our ongoing drilling of fertile copper and gold systems in the world-class Mt Isa district,” Thomas says.

The $65m capped stock is up 10% year-to-date.