Resources Top 5: Bauxite delight and a Tesla ‘Battery Day’ bonus

• Project developer Lindian Resources to acquire ‘tier 1’ bauxite resource in Guinea
• Greenland Minerals’ Kvanefjeld rare earths project gets tick of approval in “major milestone”
• EcoGraf rides Tesla’s ‘Battery Day’ hype into another share price surge

Here’s your top ASX small cap resources winners in morning trade Wednesday, September 23.

Lindian Resources (ASX:LIN) will buy 75 per cent of the ‘tier 1’ Lelouma bauxite project in Guinea, which will be incorporated into the company’s development strategy.

Over $US10m ($14m) was spent by previous owners on the advanced 847-million-tonne project, which is just 40km from Lindian’s high-grade Gaoual bauxite asset.

The deal would see Lindian acquire 75 per cent of current owner Sarmin in an all share deal, subject to shareholder approval.

“The Lelouma project is an exciting addition to the Lindian portfolio adding substantial critical mass with its incredibly large, high-quality tier 1 resource,” Lindian chief exec Danny Keating says.

“The key focus for us now is the development strategy; we believe that staged development of bauxite assets is critical, starting with lower capex assets that are close to the coast or existing infrastructure, such as Woula, and then progressing to larger world class resources like Lelouma and Gaoual.

“A coherent development plan that de-risks the projects and reduces the overall capital investment will assist in attracting financing partners, operational partners and refinery players seeking security of supply and access to world class multi-generational bauxite resources.”

The stock was up almost 40 per cent in early trade to claw back some of its heavy year-to-date losses.

Lindian Resources (ASX:LIN) share price chart:

Rare earths play Greenland Minerals (ASX:GGG) hit a “major project milestone” as independent technical reviews confirm that the Kvanefjeld development meets local guidelines.

“Kvanefjeld represents an important mining project for Greenland with the potential to be a globally significant, multi‐decade producer of magnet rare earths that are critical to the electrification of transport systems and a clean energy future,” Greenland Minerals managing director Dr John Mair says.

“The outlook for the rare earth sector continues to strengthen with substantial new supply needed through the coming decade, creating an optimal development window.

“We will be engaging Greenland’s Ministry for Mineral Resources to start planning for public consultation and all outstanding matters that relate to permitting and look forward to providing further updates.”

Greenland Minerals (ASX:GGG) share price chart

Up on no news:

Battery materials stock Ecograf (ASX:EGR) is riding Tesla’s ‘Battery Day’ hype into another share price surge.

WA-based Ecograf is now at ~four-year highs following a red-hot run for the stock, which it has partially attributed to “improved sentiment for battery mineral markets”.

Zeus Resources (ASX:ZEU) is investigating gold and/or copper project acquisitions in Laos, according to a June quarterly report.

Gold-copper focused explorer Raiden Resources (ASX:RDN) says it has defined over 20 porphyry, epithermal and polymetallic prospects over the course of 2019 — a number of which will be drill tested during the remainder of 2020 and during 2021.

Ecograf (ASX:EGR) share price chart