• Desert Metals announces 9km extended area of its clay-hosted REE target in WA
  • Vanadium hunter Tivan nabs former RBA and FFI man Guy Debelle for non-exec director role

Here are the biggest small cap resources winners in early trade, Friday September 1.

 

DESERT METALS (ASX:DM1)

This small-capped diverse metals (gold, nickel, lithium, graphite) and rare earths explorer has absolutely bolted ahead of the ASX resources gains pack this morning.

DM1 is up more than 130% on news it’s confirmed that the clay-hosted rare earth element (REE) mineralisation from the neighbouring Tower resource (belonging to Krakatoa ASX:KTA) extends for at least 9km into Desert Metals’ Dingo Pass project.

Big, because it validates DM1’s long-held claims that a major REE system awaits extraction at the WA project. The area is shaping as a potentially world-class source of clay-hosted REEs.

The company notes a total of 100 holes for 2,973m were drilled along five north-south traverses. Lines were between 1-3 km apart with 200m spacing between holes.

Given the program was designed to test whether REE mineralisation continued from the Tower (101Mt at 801ppm TREO) onto DM1’s ground, it looks like the thesis gets a tick.

Dingo REE results. Of the 100 holes drilled, 74 holes retuned assays greater than 500ppm TREO including 31 holes returning intercepts >1000ppm TREO. (Source: Desert Metals ASX announcement)

Assays of greater than 1,000ppm TREO were intersected on all five lines, with the clay-hosted REE mineralisation pushing at least another 9km east from the boundary of the Tower REE deposit.

“The program has successfully confirmed that the Tower mineralisation footprint is at least five times larger within Desert Metals’ license,” the company confirmed.

We’ll leave you with Desert Metals’ caveat on all this, however:

“The company is evaluating how to move its REE projects forward in the context of currently difficult market conditions and comparatively weak REE prices.

“Subject to an improvement in market conditions, the company does not intend to sole fund additional drilling for REEs on either Innouendy or Dingo projects in the short term.”

DM1 share price

 

TIVAN (ASX:TVN)

This junior vanadium miner has surged more than 17% this morning on news that Dr Guy Debelle has agreed to join the board in the role of Non-Executive Director, effective… a handful of hours ago.

This is big news largely because Debelle has become a noteworthy figure in the clean-energy and mining spaces.

A former, prominent central banker for 25 years at the RBA (seven years as Deputy Governor), Debelle made a surprising pivot into a clean-energy exec position with Fortescue Future Industries, before moving on from the CFO role to become a FFI director.

Well, he’s now jumped ship, making his move the third recent high-profile departure from the Andrew Forrest empire, after CFO Christine Morris and CEO of the iron ore division Fiona Hick.

 

It’s an eye-catching signing for Tivan, the former TNG, and investors are liking it so far today, as is Tivan’s executive chair Grant Wilson who rolled out a few superlatives for you…

“This is about talented people coming together, shoulder to the wheel, to advance durable pathways for Australia to navigate the energy transition.

“Guy is highly regarded in policy circles and across global financial markets. His work ethic, intellect, networks and solution-driven ethos will further invigorate Tivan, and bolster our emergence as a strategic leader in the critical minerals sector.”

As for Debelle, he says he’s looking forward to being able to “further enhance Tivan’s inclusive and sustainable approach to developing its resources to benefit the community and deliver value for its shareholders”.

The Australian has more details on the Debelle FFI departure here.

TVN share price

 

TOUBANI RESOURCES (ASX:TRE)

TRE is up further today, still trading on good midweek news in which the goldie announced it raised $3.8m to accelerate development at its 2.4Moz Kobada gold project in southern Mali, West Africa – one of the most prolific regions for untouched gold in the world.

The raise comes in the form of “firm commitments from institutional and sophisticated investors” and will fund exploration activities at the flagship project.

Per our special report on this subject:

West Africa is primed for a gold rush, and Toubani Resources is sitting on what could be Mali’s largest undeveloped oxide gold mine. 

In a two-tranche placement, Toubani will issue 32m chess depositary interests (CDIs) at 12c per share with directors intending to subscribe to the raise themselves.

Toubani reckons it’s undervalued compared to its peers, with a free diggable resource at just US$4/oz enterprise to resource value.

The resource currently stands at an impressive 87Mt @ 0.86g/t for 2.4Moz.

The grade might seem low, but its soft material and so are the depths the mining needs to go beneath the surface.

TRE share price

 

SOUTHERN PALLADIUM (ASX:SPD)

(Up on no news)

Southern Palladium, an Aussie explorer that recently acquired a 70% interest in the Bengwenyama palladium/rhodium-dominated PGM project on the eastern part of the Bushveld woodland in South Africa, is up on no particular standout news today.

It did, however, release its quarterly activities summary this week for the period ending June 30, so let’s take a very quick look at some highlights from that.

Some context first, though, courtesy of Bevis Yeo’s article on the company from back in May, which highlighted a potential for growing platinum group elements (PGE) demand, based on their role in the production of hydrogen.

At the time, SPD had “just upgraded 3PGE+gold (4E) resources at the UG2 Reef within its Bengwenyama PGM project… The complex contains 70% of the world’s PGE resources.”

According to the company’s most recent report, SPD’s total mineral resource (indicated and inferred) for the Bengwenyama project has now increased from a 3PGE+Au Inferred Resource of 18.80Moz to a 6PGE+Au indicated and inferred resource of 25.12Moz, an increase of 34% since drilling began.

Additionally, “drilling during the quarter has focused on key areas as part of preparing for the pre-feasibility study (PFS) expected in first quarter 2024.

“Preparation for the Mining Right Application continued with key advancements on the mining works programme, environmental scoping study and social & labour plan,” continued SPD in its report.

Metallurgical test works and geotechnical study-works in connection with mine design and planning for the PFS is underway.

SPD share price

 

AUSTRALIAN CRITICAL MINERALS (ASX:ACM)

(Up on no news)

This newcomer to the ASX, a Western Australian-based explorer focused on, you guessed it, critical minerals (lithium and REEs), is up more than 18% at the time of writing on no fresh news.

Earlier in the week, though, it announced that its maiden exploration program has been successfully completed at the Cooletha lithium project in the Pilbara.

Highlights ripped from its latest ASX announcement:

• Highly encouraging mineralisation identified

• Visible spodumene sites discovered on E45/4990

• Manganese mineralisation identified on E45/5228

• Reconnaissance has covered approximately 15% of the pegmatite prospective region

Managing Director, Dean de Largie:

“We are delighted to have completed our maiden exploration campaign at the Cooletha lithium project so quickly after our IPO was finalised in July this year.

“We are very encouraged by the visible spodumene identified during this program and whilst we wait for the results of the first batch of rock samples within 6-8 weeks, reconnaissance sampling will continue. Having only covered 15% of the prospective pegmatite region so far, we are excited about the potential for exploration success.

“We are also eagerly anticipating the commencement of our first drilling program at Rankin Dome which will target anomalous rare earth prospects. Final approvals and landowner access to allow this program to begin are imminent.”

ACM share price

 

At Stockhead, we tell it like it is. While Toubani Resources is Stockhead advertiser at the time of writing, it did not sponsor this article. 

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