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Resources Top 5: Lithium Universe makes bold entrance, hunt for rare earths gears up in NT and WA
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- Iggy Tan backed Lithium Universe relists on the ASX with a big bang
- MetalsGrove’s carbonatite REE hunting proves fruitful at NT Arunta project
- Terrain Minerals gets heritage approval to drill for REEs at Lort River, WA
Here are the biggest small cap resources winners in early trade, Monday August 14.
Lithium Universe (ASX:LU7)
Lithium Universe has hit the bourse for the first time this morning, making an immediately explosive impression.
Formerly known as Mogul Games, an online gaming and esports operation, the company, led by “lithium visionary” Iggy Tan, has relisted as LU7 – quite obviously with an entirely different focus from previous screen-focused, button-mashing activities.
This is not out of the blue, of course, with an IPO raising A$4.5m at $0.02 per share attracting “overwhelming demand”, thanks to ideal timing and location of its Canadian projects.
At the time of writing, the LU7 share price is trading at $0.052.
Read this morning’s special report on LU7 for full background, but just quickly, LU7’s first and primary focus will be to fast-track exploration and development at its Apollo project, which comprises 466 claims covering an area of ~240km2 just 29km from Corvette in the lithium-rich James Bay region of Quebec, Canada.
Iggy Tan was one of the first Australian mining executives to identify the opportunity within the emerging lithium-ion battery sector when he spearheaded Galaxy Resources (ASX:GXY) and advanced Galaxy’s Mt Cattlin 137,000 tpa spodumene project.
For Lithium Universe, he’s assembled a standout team with a successful track record of developing hard rock lithium projects.
The team includes Patrick Scallan, an experienced lithium veteran who successfully managed the world-class Greenbushes Mine for over 25 years and former Galaxy Resources general manager of technology Dr Jingyuan Liu, who played a key role in developing the Jiangsu lithium carbonate project.
Other members include Roger Pover who also worked on Greenbushes and was the plant manager at Mt Cattlin and Huy Nguyen, who is involved with Mintrex, the company responsible for constructing the Mt Cattlin project for Galaxy.
METALSGROVE MINING (ASX:MGA)
MetalsGrove Mining (ASX:MGA) has announced a high-grade carbonatite rare earth (REE) discovery at the Arunta project in the Northern Territory, specifically at the Bruce and Plenty River prospects.
The newly found carbonatite is reported to be up to 7,000ppm (0.70%) TREO with multiple zones of mineralisation. The company adds there is “potential for sufficient rare earth minerals resource tonnes”.
Carbonatites are also a major source of the metal niobium, used for strengthening alloys of iron and other metals used in all manner of construction across various industries.
Regarding the Bruce drilling campaign, MetalsGrove Mining MD Sean Sivasamy noted: “These results demonstrate the clear potential for Bruce to host a considerable carbonatite and REE system with the outcropping strike of now extending over 9km.
“The Bruce Prospect is shaping as an excellent opportunity for MGA and demonstrates the underlying exploration potential of our Arunta Project area in the Northern Territory – a region home to several world-class deposits.”
TERRAIN MINERALS (ASX:TMX)
Terrain Minerals has received heritage approval to drill at its 100% owned, 320km2 Lort River project within the heart of the Esperance REE province of Western Australia.
The company reports it’s secured all of the required clearances to commence its maiden proof of concept air core drilling campaign at the project – a campaign that plans to test REE grades and thickness of clay zones and follows up from positive historic REE soil sampling results.
TMX also provided an update on its Smokebush exploration project, within the Yalgoo mineral field approximately 350 kilometres north of Perth, Western Australia, where the company has been drilling targeting multiple pegmatites for lithium.
Results are pending from the Larin’s Lane prospect, with an MMI extension program completed and assays awaiting. The company is aiming for a maiden air core drilling campaign beginning in September or October.
The company notes:
“Given the large number of promising exploration targets across its current flagship projects ‘Smokebush’ and Lort River, and with Terrain’s commitment of fully testing all targets in a rapid, methodically, and systemically manner, the Board anticipates exciting and regular news flow throughout the rest of 2023 and beyond.”
NORONEX (ASX:NRX)
(Up on no news)
Copper hunter Noronex is surging on no fresh news that we’ve spied this morning, although it did recently launch its maiden 4,000m reverse-circulation drilling program to test its Fiesta and Blowhole targets within the Kalahari Copper Belt in Namibia.
Some highlights from a recent announcement regarding the Kalahari operations include the fact that the company has identified “high priority” copper targets at the two sites, with drilling underway and on schedule. This follows previous copper intercepts in the area, specifially 8m @ 2.5% Cu and 9m @ 1.8% Cu, 82 g/t Ag.
The company is fully funded for the drill program, and Noronex Chief Geologist Bruce Hooper notes:
“It is great to be back in Namibia with the rig turning following up historical known copper mineralisation at the Fiesta Project. Using Reverse Circulation drilling we are effectively getting through the expected Kalahari cover of 70m and intersecting the target horizon.
“We are now onto our third drill hole at the Fiesta Project with several more holes to come before the rig moves to the highly prospective Blowhole prospect where targets are defined on a sheared fold closure on a domal target.”
LEGACY IRON ORE (ASX:LCY)
(Up on no news)
Legacy Iron Ore is a WA-focused explorer of iron ore, gold, base metals and critical minerals, with 10 projects encompassing 24 tenements.
No fresh news today, however, here are some recent highlights, partly based on its most recent Quarterly Activities Report, and partly on news scouring, including Stockhead‘s own recent updates:
• At its South Laverton gold project, the company has finalised plan to drill test targets at the Patricia North prospect; it’s completed early exploration drilling at Sunrise Bore; and it’s been granted a mining lease at Mount Celia.
• At its iron-ore magnetite Mount Bevan project, the company has progressed Pre-Feasibility Studies (PFS) by the JV Partner Atlas Iron.
• And, back in mid June, the company turned heads becoming part of a new earn-in and Joint Venture agreement with none other than Hancock Magnetite Holdings. The JV is focused on exploring all non-magnetite minerals, chiefly lithium pegmatites, along the Mt Ida fault at Mt Bevan.
