Resources Top 5: It’s boom time for ASX rare earth stocks with demand set to surge five-fold
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Here are the biggest small-cap resource winners in early trade, Thursday August 4.
Another good day for rare earths (REEs) but an especially good day for this ~$8.8m market cap minnow, which just revealed its entry into the booming sector following an acquisition agreement with UK-based Temarise.
Under the agreement, PBL will fund a $3.9m work program which will deliver a JORC scoping study at the Khotgor Project in Mongolia, offering exposure to one of the world’s largest undeveloped REE deposits strategically located on the doorstep of Asian customers.
Rare earths remain critical in various applications such as electric vehicles and wind power with future demand expected to surge five-fold by 2030 – according to PBL non-executive chairman Mark Hohnen.
He says he is a long-term believer and excited by the NdPr requirements for the world to meet its clean energy needs and the Khotgor Project is well-placed geographically to take advantage of these growing demands.
This goldie topped our list last week and here it is again with another outstanding hit, this time at the Highway Zone Target, part of the Tuckanarra Project in the Murchison Goldfields in Western Australia.
The highlight intersection returned 84m at 2.5g/t gold, just 25m from surface with the hole ending in mineralisation at 109m.
While ODY has systematically been drilling the targets across Tuckanarra throughout 2022, the holes announced today are the first targeted to intersect the mineralisation in oxide at the Highway Zone.
What’s super interesting is mineralised structures across the Tuckanarra site have shown supergene enrichment where thick intersections are created at the base of oxide – this is now being repeated at the Highway Zone.
ODY says the Highway Zone is showing strong potential for open pit and underground mining potential as it awaits the results of another three RC holes.
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TYX is now up 400% since mid-May, when it pivoted to lithium with the acquisition of the early stage ‘Namibe’ project in Angola, West Africa.
Early signs were promising, with the company dusting off historical rock chip samples containing up to 7.49% lithium.
That’s high grade. Hard rock mines usually produce at an ore grade of between 0.8-1.5% lithium.
A fresh sampling program is now complete, the company says, with the intention now “to begin drilling as soon as possible”.
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CVV recently released a landmark pre-feasibility study on its large copper porphyry project, which currently hosts a resource of 2.84Mt contained copper near Wongan Hills in the WA Wheatbelt.
It promises to be one of the most advanced bulk, low grade copper mines in the world, leveraging technology and its location in the world’s best mining jurisdiction to deliver a key source for the metal dubbed “the new oil” over a long initial life of 28 years.
On Wednesday, the copper explorer received commitments to raise $3 million at $0.17 per share to complete optimisation studies and continue critical path activities at its flagship Caravel project.
The project holds a maiden ore reserve of 583.4Mt at 0.24% copper for 1.42Mt contained copper at a 0.10% cut off.
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LNR, previously named Frontier Resources, recently completed a $1.75m placement to fund upcoming drilling campaigns at its Gascoyne Rare Earth Elements Project as well as the the Murraydium Ionic Clay REE Project.
At the Gascoyne Project, drilling will focus on high-grade rare earth mineralisation discovered at outcropping ironstones and additional interpreted carbonatite intrusives and ironstones under cover.
It will also investigate high priority targets located within the Gifford Creek Carbonatite Complex, host to Hastings Technology Metals’(ASX:HAS) world-class Yangibana Mineral Resource of 27.42Mt at 0.97% TREO and Dreadnought Resources multiple discoveries.
LNR’s Murraydium Project is in the southeastern region of Naracoorte in South Australia’s Murray Basin covering an area of 873km2.
The region is seeing a renewed focus for REE minerals with the success of Australian Rare Earths (ASX:AR3) at their Koppamurra Project, host to an inferred mineral resource of 39.9 Mt at 725 ppm TREO.