Resources Top 5: It’s all about lithium as acquisitions, promising discoveries top the charts

Westar Resources will buy Mindoolah lithium-gold project, sell Gidgee South gold project in separate transactions
Numerous large, outcropping pegmatites identified at Accelerate Resources’ East Pilbara project
Lodestar Minerals, Auroch Minerals drill into high grade lithium at Nepean project JV in WA

Here are biggest small cap resources winners in early trade, Thursday November 24.

WESTAR RESOURCES (ASX:WSR)

The latest explorer to dip its toe into battery metals is WSR, which will buy the Mindoolah lithium-gold project, and sell its Gidgee South gold project to Aurumin (ASX:AUN) in a separate transaction.

At Mindoolah – near Cue in WA — an initial review by WSR has identified multiple mapped pegmatite outcrops over several kilometres.

There’s been no historical sampling for lithium mineralisation because exploration up to this point has been gold-focused.

“This will be the immediate focus for initial exploration activities, and in the background, we will refine the potential priority targets for gold exploration,” managing director Karl Jupp says.

A field team is planned to be on site late November, with rock-chip assays expected early Q1 CY23.

Separately, a $160,000 all-scrip deal will see Gidgee South added to AUN’s rapidly developing 946,000oz Sandstone gold project in WA.

“[This] will give Westar continued exposure to this asset alongside the potential of Aurumin’s rapidly developing Sandstone Gold Project,” Jupp says.

Today’s announcement has reinvigorated the WSR share price, which had lagged badly in 2022.

ACCELERATE RESOURCES (ASX:AX8)

Numerous large, outcropping pegmatites have been identified at AX8’s East Pilbara project, 30km east of Global Lithium Resources’ (ASX:GL1) Archer lithium deposit (10.5Mt @ 1.0% LiO2).

That includes four large peggies, ~300m long and 20-30m wide, as well as 14 smaller ones.

The interpreted geological and structural setting is similar to the Archer deposit, AX8 says.

A maiden sampling program was undertaken at the Mount Creek tenement block, closest to Archer, with assay results due Q1 2023.

AX8 says mapping and sampling of prioritised targets is planned in early 2023, with drilling to follow.

The explorer also has a more advanced manganese project called Woodie Woodie North, where drilling results are expected in January.

AUROCH MINERALS (ASX:AOU) & LODESTAR MINERALS (ASX:LSR)

LSR and AOU have drilled into high grade lithium at the Nepean project joint venture in WA (AOU 80%, LSR 20%).

Significant results from the two-hole program – originally designed to test for nickel — included 2m at 3.26% Li2O from 198m.

Significantly, the two holes were drilled ~150m apart, ~420m north of a previously reported 1m @ 0.88% Li2O from 78m.

This suggests potential LCT-enriched pegmatites over a significant strike length at the Nepean North Prospect, AOU says.

The company will immediately kick off a high priority lithium exploration program.

“The limited work on the pegmatites thus far has successfully confirmed high grade lithium mineralisation, and even more importantly, spodumene mineralisation,” AU exploration manager Robin Cox says.

Spodumene is the main lithium ore mineral.

“We can see the significant potential for high grade LCT pegmatites at Nepean North and are excited to commence the next phase of exploration.”

GREENVALE MINING (ASX:GRV)

(Up on no news)

GRV’s main game is the “exceptionally high-grade” Alpha torbanite project in QLD, which can produce high-value bitumen, light crude oil and activated carbon.

Recent test work shows bitumen production from Alpha generates significantly lower carbon emissions than traditional methods.

GRV also has several pending permit applications for geothermal exploration in the Millungera Basin of QLD. The team will also assess the ground for a full suite of critical elements, including lithium, tellurium, silver and other rare earths elements, it says.

In September, it inked a deal to sell 80% of its Georgina Basin IOCG project in the Northern Territory to Astro Resources (ASX:ARO) for 1.150 billion ARO shares, or ~19.7% of existing shares, plus a 2% net smelter royalty.

LISTEN: Explorers Podcast: Veteran company director Neil Biddle talks torbanite, a rare product with three high value uses