Resources Top 5: ABx in rare air on heavy rare earths tests

• Leaching tests return better than 70% recoveries of dysprosium and terbium for ABx
• A number of prospective gold targets have been identified by BUS at Wilson’s Hill
• GIB has started mining at Neta deposit of the Edjudina Gold Project in WA

Your standout small cap resources stocks for Wednesday, September 3, 2025.

ABx Group (ASX:ABX)

ABx Group (ASX:ABX) was in rare air after tests confirmed high extraction rates of key heavy rare earths, surging to a two-year high of 13.5c, an increase of around 230% on the previous close and with more than 43m shares changing hands. Its shares closed up 83% at 7.5c.

Diagnostic leaching tests were carried out by ANSTO, one of the world’s leading REE laboratories, on a 100kg bulk sample of ionic adsorption clay rare earth material from the Deep Leads project in Tasmania.

This returned better than 70% recoveries of dysprosium and terbium, the two high-value heavy REEs that are in high demand. 

The ANSTO diagnostic leach tests were conducted at pH 4.0, pH 4.5 and pH 4.7 to test progressively lower acidity, nearer to neutral pH 7. Lower acidity delivers lower capital/operating costs and reduced environmental impact. 

Extraction results were very similar at pH 4 and 4.5, and only slightly lower at pH 4.7, indicating that the Deep Leads deposit could be effectively leached at an exceptionally benign pH above 4 (the acidity of apple juice).

ABx said this was valuable because contamination by impurity elements such as aluminium and iron was typically much lower at a higher pH.

ANSTO’s latest results were at least consistent with, and in some cases better than, those from ABx’s in-house leach testing.

They are also consistent with previous leach tests conducted by ANSTO that found that samples from Deep Leads exhibited the highest extractions under near-neutral conditions reported from any clay-hosted resource in Australia. 

This means the ABx resource has the highest ionic proportion of any clay-hosted rare earths resource in the country.

“Achieving such high extractions of dysprosium and terbium is particularly encouraging, as these are the most strategically valuable rare earths,” ABx Group MD and CEO Mark Cooksey said.

“The ability for Deep Leads to effectively be leached above pH 4 reduces impurities and points to lower operating costs and a cleaner process.”

ANSTO remains on track to deliver a mixed rare earth carbonate (MREC) sample in Q4 2025 and ABx advises that prospective customers are eagerly anticipating MREC compositions and samples. 

“With the program on track to deliver our first MREC sample later this year, we are advancing rapidly towards commercial outcomes,” Cooksey said.

Bubalus Resources (ASX:BUS)

A review of the Wilson’s Hill project in the heart of the Victorian goldfields by Bubalus Resources has revealed geological similarities with the 22Moz Bendigo Goldfield and Falcon Metals’ (ASX:FAL) nearby Blue Moon project.

A number of prospective gold targets have been identified at the project, which has historical, high-grade production from shallow workings that stretch across 1km of strike and mostly to depths of ~50m.

Wilson’s Hill displays regularly spaced folding and faulting analogous to the famed Bendigo Goldfield, supporting the potential for repeating high-grade reef structures at depth.

Bubalus Resources (ASX:BUS) intends to follow up on the review given that previous diamond drilling by Western Mining Corporation identified a saddle-reef style horizon at a depth of ~250m after returning assays of up to 8m grading 23.83g/t.

This work also generated a shallow (~50m depth), bulk-tonnage zone striking ~350m along Wilsons Reef that contains multiple quartz vein sets in parallel and tension vein arrays with widths of about 3-6m. 

The project encompasses the historical Wilsons Hill Goldfield and is within the suite of tenements the company has under option from Syndicate Minerals.

Analysis by GBM Resources (ASX:GBZ) from 2010-13 using WMC’s drill core identified repeat mineralisation consistent with Bendigo-style folding frequency and confirmed the potential for multiple stacked horizons between 200-800m depth.

GBM also reported an exploration target and resource under the outdated JORC 2004 code, though only limited work was done to convert the exploration target into resources.

BUS was unable to retrieve sufficient information to validate the resource and exploration targets reported by GBM in 2013, but will now move to compile and validate where possible all historical data.

Planning is underway for new geochemical sampling, modern geophysics (induced polarisation) and drilling.

Gibb River Diamonds (ASX:GIB)

The start of mining by Gibb River Diamonds (ASX:GIB) at Neta deposit of the Edjudina Gold Project in WA’s Eastern Goldfields has resulted in the company increasing 36.18% to 6.4c, a two-year high.

Private mining contractor BML Ventures is running the operation and is responsible for all mining and processing costs, leaving GIB with minimal financial exposure. 

Ore will be toll-treated at nearby mills, with cashflow split 50/50 once expenses are covered. The resource sits at 378,000 tonnes at 1.9 g/t for 24,000 ounces, including 8000oz in the indicated category. All gold will be sold into the spot market.

BML has a track record of working with local toll treatment operators to maximise profitability and cash generation from small to medium sized mining projects.

These include agreements for conducting mining operations with ASX-listed companies including Auric Mining and Horizon Minerals.

Sunshine Metals (ASX:SHN)

With diamond drilling underway at the Sybil epithermal gold project within the Ravenswood Consolidated Project in North Queensland, Sunshine Metals (ASX:SHN) hit a 12-month high of 2.2c, a jump of 29.42% on the previous close, before closing at 1.9c.

Fourteen diamond holes are planned for around 1135m at Francis Creek prospect targeting low sulphidation, epithermal gold mineralisation.

“A huge effort from the team to have a rig turning within nine weeks of acquiring Sybil,” Sunshine MD Dr Damien Keys said  

“When we picked up Sybil, we inherited a series of paper reports. We have collated these into a digital database of 4,658 rock chip samples, 201 drill holes and mapping. We have also flown a detailed topographic survey. 

“The diamond core will provide important vein thickness, composition and orientation information.”

SHN continues with fieldwork at Sybil and a detailed drone magnetic survey over the broader region will begin in October.  

At Liontown North a 650m diamond hole is testing a prospective horizon 500m north of the 6Mt at 3.6g/t AuEq Liontown resource.

Sunshine this week raised $5m at 1.2c, with the new shares already in the money. That included $1m from listed fund Lion Selection Group (ASX:LSX), which now controls 9.2% of the company.

Flagship Minerals (ASX:FLG)

A review of recently purchased Anglo American Norte data from Flagship’s +1Moz Pantanillo gold project in Chile confirms that the project is in good order.

The data comprises more than 700 files containing at least 10,000 documents and is accompanied by in excess of 100 tonnes of core, pulps and sample.

Flagship’s initial review has confirmed a large oxide system and re-cutting of published cross sections has delivered exceptional grades and scale with multiple +100 gram/metre intersections.

The Anglo dataset facilitates a fast-tracked conversion of the current 1.05Moz foreign estimate into a mineral resource estimate in accordance with the JORC Code 2012.

“The acquisition of Anglo American’s dataset is a game-changer for Flagship,” MD Paul Lock said.

“What we’re seeing are multiple long runs of +100 gram-metre intercepts in oxide material – with outstanding results such as 116m at 1.5g/t and 142m at 1.13g/t gold, as well as several +300m intersections at >0.50g/t gold. 

“This confirms Pantanillo’s credentials as a large, scalable heap leach opportunity.”

This article does not constitute financial product advice. You should consider obtaining independent financial advice before making any financial decisions. While Bubalus Resources is a Stockhead advertiser, it did not sponsor this article.