Pic: Getty
Mining
Here are the biggest small cap resources winners in early trade, Thursday November 4.
Almost every uranium stock was green at the open after Sprott’s Physical Uranium Trust (SPUT) stacked (removed from market) another 700,000lb of uranium:
SPUT – which has already been a ‘can of kerosene’ on a uranium market ready to explode — still holds another $US54m in cash for stacking.
In 55 trading days investors have poured an incredible $815M into #SPUT🏧💰 that @Sprott has used to stack over 17.6M lbs of physical #Uranium🛒 to bring their total stack to 35.9M lbs #U3O8🏦🔒 at an average rate of 320.4K lbs per session or 1.6 Million lbs per week.🤠🐂 #ESG 🏄♂️ https://t.co/jH2Z15sYNs
— John Quakes (@quakes99) November 3, 2021
Leading the pack are advanced project developers Lotus Resources (ASX:LOT), Deep Yellow (ASX:DYL), Bannerman Energy (ASX:BMN), Paladin Energy (ASX:PDN) and Boss Energy (ASX:BOE).
Paladin announced an update to the ‘Langer Heinrich’ mine (LHM) restart plan, which envisages a restart cost estimate of $US81m and a 17-year mine life supported by ore reserves of 84.8Mt with an average U3O8 grade of 448ppm.
The company has confirmed a timeframe of 18 months from project commencement to first production, with full production achieved after a further 15 months.
“The restart work technical programs are now complete and have reinforced Paladin’s confidence in LHM as a robust, competitive long-life operation ready to rapidly restart production in the right uranium price environment,” PDN says.
“Paladin continues to engage with global nuclear energy utilities with the intent of securing uranium offtake contracts with sufficient duration and value to underpin the restart of LHM.
“The company notes an increase in market queries from utilities and an increase in long term market pricing.”
Meanwhile, Deep Yellow upgraded the Mineral Resource Estimate (MRE) to JORC (2012) for the ‘Omahola’ project in Namibia.
The MRE includes a Measured, Indicated and Inferred Resource base of 125.3Mlb at 190ppm U3O8.
A shallow 7,100m, 200-hole drilling program kicked off 5 October, aimed at identifying new mineralised areas outside existing deposits for follow-up drilling.
A PFS was completed in early 2021 on its flagship ‘Tumas’ project, also in Namibia, and an advanced Definitive Feasibility Study was launched soon after.
(Up on no news)
ASN’s main game is the ‘Paradox’ lithium-bromine project in southern Utah, which is nearing a development decision. It now has approvals to drill a couple of production wells:
Work commenced on the clearing a pad for the LCW2 well at the Paradox Brine Project. A short road is required to the pad and the route selected to minimize new environmental disturbance. pic.twitter.com/62QPOLa1yk
— Anson Resources Ltd (@anson_ir) November 3, 2021
Earlier this week the company announced that lithium carbonate from Paradox performed “slightly better” than existing commercial products in long cycle battery test work.
Its lithium hydroxide demonstrated similar performance to existing commercial products.
These test results are to be shared with potential off-take partners and end-users, ASN says. The company recently appointed a financial adviser “to secure an attractive, flexible funding package” for the development of Paradox.
The $123m market cap stock is up 45% over the past month, and 330% year-to-date.
The Canadian gold explorer recently inked a $9.2m deal with Green Technology Metals (GTM) to explore and potentially develop its non-core lithium assets in Ontario.
The first tranche – consisting of $1.75m cash and $2.25m GTM shares – has now been received, the company says.
This payment marks the establishment of the lithium joint venture (51% GTM, 49% ADV) to progress the ‘Seymour Lake’, ‘Root Lake’, and ‘Wisa Lake’ assets, ADV says.
GTM has the option to purchase up to 80% of the lithium assets for a further $3.5m payment within 12 months of listing on the ASX, which is pencilled in for this month.
“Retaining a minimum 20% interest in the lithium assets provides Ardiden with upside exposure to the battery metals market without having to deploy capital towards lithium exploration, while simultaneously providing capital for the gold exploration program at its Pickle Lake gold project,” ADV says.
“Ardiden will have a free-carry JV interest up to the completion of a Definitive Feasibility Study (DFS), or Decision to Mine milestone.”
(Up on no news)
The exploration minnow is now up ~35% after reminding punters that it has lithium assets in the portfolio earlier this week.
“In addition to the company’s gold and base metal portfolio in the Yalgoo and Mt Magnet regions, TEM maintains a strong de-risked position in lithium both in Australia and internationally through its WA exploration projects and holdings in projects in Africa (hard rock lithium) and the USA (lithium brine),” TEM says.
While these projects are taking a back seat for now, TEM says it is prepping for early-stage reconnaissance mapping, drone surveys and a targeting study at the ‘Rocky Hill’ lithium, kaolin, and magnesium project near Perth.
2,000m of drilling is also expected to kick off early November at the ‘Euro’ gold-iron ore project in WA.
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