Resources Top 5: Lots of lithium and one very weird rare earths company
Here are the biggest small cap resources winners in early trade, Tuesday October 12.
This is a weird stock.
From a low of 4.2c on August 27, shares in the barely profitable Chinese rare earths/car leasing business closed last Friday at 72c.
To start the week, VIA – which typically ekes out one or two boring announcements per quarter — had ramped by another 108% to $1.50 by lunchtime Tuesday.
An incredible 3,470% gain.
This has, so far, warranted one leisurely ‘pls explain’ from the ASX, to which VIA replied, ‘nothing to see here’.
Importantly, the company’s trading history on Commsec is notably low volume for such a heady rise in the stock price.
Recent trading history shows VIA didn’t even trade on Commsec between March and August.
In the 45-day period between August 27 and October 11, there were also days where it didn’t trade.
The largest daily volume on Commsec occurred on September 8, when 69,050 VIA shares changed hands and the stock mooned by 126%.
Some days, less than 100 shares change hands. But the buy-sell ladder continues to match at higher prices — every day.
Of the 18 days the stock traded since August 27, it has risen on 17 of them.
The freshly listed explorer has uncovered new lithium targets at its namesake project in WA, including one neighbouring the world class Wesfarmers/SQM ‘Mt Holland’ lithium mine.
FRS has lodged additional exploration licence application over these targets.
Initial ‘ground truthing’ of these targets (aka walking around) has already kicked off as part of the FRS’s early-stage exploration program, which includes mapping, soil, and rock chip sampling across priority anomalies.
Compilation and analysis of historical data is also ongoing.
“Geologically, our package holds the potential to discover a range of commodities, including lithium, nickel and other speciality metals,” CEO Melanie Sutterby says.
“With its status as a world-class lithium province ascribed within the past decade, explorers have only just scratched the surface at Forrestania, and we plan to play a lead role in the development of the area.”
The popular stock is already up 110% on its IPO price of 20c per share.
(Up on no news)
CHR’s three battery and precious metals exploration projects — ‘Coates’, ‘Lake Johnson’ and ‘Bynoe’ – are in some great neighbourhoods.
Coates nickel-copper-PGE project is just 30km from Chalice’s (ASX:CHN) Julimar discovery in WA.
The area around Lake Johnson has been attractive since the discovery of the Earl Grey/Mt Holland lithium deposits by Kidman Resources, which was acquired for $776m in 2019.
Meanwhile, the Bynoe lithium and gold project in the Northern Territory is surrounded by tenements owned by advanced project developer Core Lithium (ASX:CXO).
Early-stage exploration has kicked off at all three projects ahead of drilling, the company says.
The recently listed stock is up 150% on its IPO price of 20c per share.
Gold focused QX is in the process of acquiring a lithium project in the Pilbara, the hard rock capital of the world.
After a recent site visit, QXR says ‘Turner River’, ~17km south of the Wodgina mine and ~30km southwest from Pilgangoora, contains “numerous pegmatite dykes”. Encouraging start.
The explorer has 30 days to conduct its initial due diligence. If it chooses to acquire the project, vendor Redstone Metals will get 12m QXR shares.
“Confirmation of numerous pegmatite dykes highlight the potential for possible lithium mineralisation sitting within the project area and we look forward to receiving first assay results,” QXR chairman Maurice Feilich says.
“Sitting within Australia’s premier destination for lithium projects, Turner River is an excellent opportunity for QX Resources to secure a highly prospective asset of this nature.”
The company is also looking at other potential acquisitions in the region.
“This first pass site visit has given us much greater confidence in the project and indeed the region and we are assessing other asset opportunities in the region that have the same exploration characteristics,” Feilich says.
(Up on no news)
The $70 million-capped company is undertaking a strategic review as it looks to evolve from a small-scale explorer to a pre-development mining company.
ZNC has enjoyed a solid rerate over the past 12 months, with its share price up more than 80%.
That largely came on the back of exposure to the emerging top-tier ‘Earaheedy’ zinc discovery made by joint venture partner Rumble Resources (ASX:RTR) in WA.
At Earaheedy, ZNC holds a 25% stake and is free carried until the delivery of a bankable feasibility study.
It is also set to lodge a maiden resource at the Split Rocks gold project near Forrestania in WA next year, and is having growing success with its exploration push at the Develin Creek copper project in Queensland.