Resources Top 5: Cheap lithium stocks, high grade gold, and an ‘impressive’ rare earths discovery
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Here are the biggest small cap resources winners in early trade, Monday January 10.
Late last year, copper-gold focused explorer KFM decided to see if its ground in the Gascoyne region of WA had rare earths potential.
Strong demand growth has sent prices of rare earths soaring as their use in high-tech applications such as electric vehicles, wind turbines and electronics continue to expand.
The early omens were good, with the project a proverbial stone’s throw (~100km away) from Hastings Technology Metals’ (ASX:HAS) world-class 27.42Mt @ 0.97% TREO ‘Yangibana’ deposit.
Today the promising results from a late 2021 drilling program were announced, including an “impressive” 12m at 1.12% total rare earth oxides (TREO) at the ‘Mick Well’ prospect.
This included a rather wonderful, 4m long high-grade chunk grading 1.73% TREO.
KFM has also identified 12 other areas which have the potential to host rare earth elements (REEs).
“The discovery of the mineralisation and numerous outcropping carbonatites has highlighted the significant exploration potential of the area,” CEO James Farrell says.
“Kingfisher has recently expanded its land holding in the region [to 969sqkm] with targeted pegging of tenements considered prospective for rare earth elements.
“The company is developing a full exploration strategy for this extensive exploration tenure as it continues to increase its efforts in the search for highly sought-after rare-earth elements.”
The $8m market cap stock, which listed late 2020, is up 20% over the past month. It had ~$4m in the bank at the end of September 2021.
This $11.2m market cap minnow hit up to 57.4g/t gold at the Plantagenet’ prospect, part of the Mt Cattlin gold-copper project in WA.
Last year, five RC drill-holes were punched into Plantagenet to test underneath some shallow (sub 5m) historical mine workings.
Early results are impressive:
“The mineralisation intersected at depth is wider and more extensive than indicated from surface workings and therefore resembles the results previously returned from drilling at Ellendale,” TKL says.
Recent drilling at the nearby ‘Ellendale’ prospect hit thick, shallow zones of mineralisation, like 19m @ 1.25g/t Au, 0.38g/t Ag and 0.05% Cu from 18m.
“The positive drill results received at Plantagenet, combined with those previously reported for the Ellendale prospect before Christmas, provides significant scope to delineate a mineralised trend over 1-kilometre in length with Plantagenet located at one end and the Revival Prospect at the other,” TKL says.
~ 50% of the assay results from the 5,000m RC and diamond drill program completed last month remain outstanding and are expected to be progressively received through January 2022.
TKL is up 50% over the past month. It had about $1.7m in the bank at the end of September.
(Up on no news)
Another lithium acquisition is in the works.
In November, RAG inked a non-binding deal to buy WestOz Lithium, which has four tenements in the Pilbara and one in the Gascoyne.
“WestOz has applied for a significant land area in a premium location, in close proximity to established lithium operations such as Wodgina and Pilgangoora,” RAG chairman Steve Formica says.
RAG is conducting a review of historical geological information and other project information during the due diligence period, which was extended until January 31.
The $14m market cap stock is up 7.5% over the past month. It had ~2.4m in the bank at the end of September and was looking to raise an additional $1.25m via placement in November.
(Up on no news)
The advanced iron ore explorer/ project developer is charging, up 200% since late November last year.
Hawsons’ selling point is its super high grade 70% grade iron ore product from its namesake project in NSW, which is suited to emerging green steelmaking tech.
If it goes into production HIO could garner ultra-high Grange Resources-like premiums on top of benchmark prices (62% index).
In late December it inked a $200m equity financing package, which can be accessed at any point over the next four years.
A Bankable Feasibility Study (BFS) for the project is already underway, fully funded via the recent $35.6m capital raising. The BFS is on track for completion in December 2022.
(Up on no news)
In December, gold focused PGD won a lithium tenement in the Pilbara via ballot (aka pulling a name from a hat).
The ground, which hosts numerous lithium occurrences in addition to tin, tantalum, gold and lead, is just five kilometres along strike from Pilbara Minerals’ (ASX:PLS) 308.9Mt Pilgangoora resource.
“There has been limited drilling and historical exploration conducted over E45/5775,” PGD says.
“The limited geological understanding has been derived through geophysical data with some previous interpretation utilised to obtain an overall understanding of the geology of the area.
“A review of all past work is underway.”
The $24m market cap stock is up 100% over the past month.