Resources Top 5: ‘Absolutely outstanding’ rare earths hits have ASX investors feeling bullish

• The first drilling assays from Lindian Resources’ Kangankunde rare earths project are super thick, high grade
• PolarX share price is now at its highest point since early March last year
• Askari (lithium), Brightstar (gold) and EV Resources (everything) up on no news

Here are the biggest small cap resources winners in morning trade, Thursday January 5.

LINDIAN RESOURCES (ASX:LIN)

The first drilling assays from LIN’s high profile Kangankunde rare earths acquisition are in, and investors are loving it.

The first two holes into the Malawian project, which LIN calls “a standout, globally significant rare earths project”, pulled up grades up to 11.8% TREO.

The mineralisation is also very thick.

Rare earths were reported over the entire length of the holes from surface, with both also ending in mineralisation.

The holes will be extended with core drilling to find out how deep the deposit goes, the company says.

Results include 110m from surface at average of 2.9% TREO (hole KGKRC00) and 250m from surface averaging 2.9% TREO (hole KGKRC002).

Importantly, high value EV/wind turbine ingredient neodymium-praseodymium (NdPr) makes up 21% of the TREO content.

The mineralisation is also low in uranium and thorium. That’s important, LIN CEO Alistair Stephens says.

“… the non-radioactivity of the Kangankunde rare earths mineralisation [is] a highly unique and extremely commercially advantageous characteristic, with the potential for concentrates from Kangankunde to be shipped anywhere in the world, free of Class 7 restrictions,” he says.

“The commercial significance of this cannot be understated.”

With about 4,500m of a planned 12,500m of Phase 1 drilling completed so far, assays will be flowing thick and fast in early 2023, Stephens says.

“These first assay results are absolutely outstanding in terms of grade, distribution and continuity, and with a steady stream of assays to follow, we are confident of delivering more of the same and building the case that in 2023, Kangankunde will rapidly emerge as a standout, globally significant rare earths project in terms of grade, scale and non-radioactivity.

“Today’s results should be regarded as a leading indicator of this.

“I am not aware of another deposit anywhere in the world demonstrating such high grades of rare earths mineralisation over these continuous lengths to such depth.”

LIN expects to deliver an exploration target and maiden mineral resource estimate sometime in Q2 CY2023.

The former bauxite explorer rerated heavily last year after reaching an out-of-court settlement over a protracted 2018 dispute for Kangankunde, one of the world’s largest REE projects outside China.

READ: We need 10 new REE mines by 2030 to meet magnet rare earths demand

ASKARI METALS (ASX:AS2)

(Up on no news)

AS2 is now all-in on lithium (with a side of rare earths) after listing as a copper-gold explorer in 2021.

3,000m of drilling across 59 holes wrapped up mid-December at the previously undrilled Uis hard rock lithium project, Namibia, which is part of an ongoing 10,000m program.

Uis boasts more than 100 mapped pegmatites across the project area, and the main target area is less than 2.5km from AfriTin Mining’s (LSE:ATM) operating tin-tantalum-lithium mine.

Assays are pending, with new drilling set to kick off in February.

“The pegmatites at the Uis lithium project had never been drill tested historically so this is naturally an exciting time for the company, and we eagerly await receipt of the results from this Phase I drilling campaign,” VP Geology and Exploration Johan Lambrechts says.

“We plan to re-commence drilling at the Uis lithium project in February 2023 and look forward to keeping our investors informed of our progress.”

BRIGHTSTAR RESOURCES (ASX:BTR)

(Up on no news)

In December, BTR and Kingwest Resources (ASX:KWR)  agreed to merge via a Scheme of Arrangement, under which BTR will acquire 100% of the shares in KWR.

The deal creates a gold company of scale in the Leonora-Laverton district, which is currently undergoing consolidation by $520m-capped Genesis Minerals (ASX:GMD).

According to BTR managing director Bill Hobba, the merger will combine two complimentary WA gold companies, leveraging Brightstar’s infrastructure (currently on care and maintenance) to unlock the development potential of KWR’s Menzies gold project.

“This is a transformational transaction for Brightstar and marks a refreshed direction for the company,” he says.

“It creates a larger, diverse junior gold play and means Brightstar can now start to assess development options utilising a larger resource base and our significant existing infrastructure.”

Could be perfect timing as the gold price continues its upwards trajectory, yesterday punching through $1,850/oz.

With central banks surely nearing peak interest rates and the economic outlook rather bleak, that trend could continue.

POLARX LIMITED (ASX:PXX)

(Up on no news)

A month of serious gains (on high volumes) means the PXX share price is now at its highest point since early March last year.

The $40m capped gold-copper explorer was vaulted into mainstream consciousness when major miner Northern Star (ASX:NST) snapped up a 10% stake in December.

PXX is now cashed up to explore its flagship assets: the Humboldt Range gold-silver project in Nevada, and the Alaska Range copper-gold project in south-central Alaska.

The junior scored one of the biggest gold hits of 2022 – which you can read about here – at Humboldt Range’s Star Canyon prospect, which is just ~3km from the currently operating 5Moz Florida Canyon mine.

Follow-up drilling kicked off mid-December.

PXX said assays from the 11 holes would start trickling in 4-6 weeks after samples were delivered to the laboratory in Reno. Exciting times.

EV RESOURCES (ASX:EVR)

(Up on no news)

The explorer formerly known as Jadar Resources has a bunch of active lithium and base metals projects spread across the globe.

They include Don Enrique in Peru (copper), Shaw River in WA (lithium), Khartoum in Queensland (tin, silver, tungsten), Eastern Alps in Austria (lithium), Christina in Morrocco (tin, tungsten) and New Standard in the US (copper).

In November/ December it also acquired Tierra Blanca and La Fortuna, a couple of precious and base metals projects in Mexico. Whew.

Chairman Luke Martino and CEO Adrian Paul recently bought $21,000 and $45,000 worth of shares respectively in the company on-market. That’s a nice vote of confidence.