Resources Top 5: More uranium, an aborted pump, and another stock jumps on the lithium gravy train
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While the pumpers used the same playbook, this time the ASX fun police jumped in before Albion could build up real momentum.
The recently listed ~$13m market cap explorer gained about 24% before being paused, just 4 minutes and 8 seconds into trading. It fell back once trading resumed.
Albion’s main projects include the ‘Lennard Shelf’ (zinc, lead) and ‘Leinster’ (nickel, copper, gold) projects, both in WA. Drilling Leinster will be announced soon, the company said in August.
Another small cap looking to jump on the lithium gravy train.
The iron ore explorer has inked a deal with $7.7 billion market cap Chinese firm Yahua to acquire and develop lithium projects around the world.
First cab off the rank could be the ‘Trigg Hill’ lithium tantalum project, ~70km from Pilbara Minerals’ (ASX:PLS) ‘Pilgangoora’ operation.
The old Trigg Hill lithium-tantalum mine operated during the 1960s and early 1980s. Pegmatite swarms cover ~5sqkm with surface spodumene and lepidolite reported, Eastern Iron says.
The ~$14m market cap stock is up 50% year-to-date.
(Up on no news)
This cashed up explorer/near term miner has a few irons in the fire.
A recent toll milling trial at its 448,000oz ‘Boorara’ gold project is expected to de-risk larger scale mine development, with a maiden ore reserve expected in the current quarter.
Then there’s the Julia Creek vanadium project in Queensland (25% ownership), which will advance to definitive feasibility study “on strong outlook”, the company said August 17.
“The Richmond-Julia Creek project is one of the largest undeveloped oxide vanadium resources in the world and can produce globally significant supply for both the steel and emerging energy storage markets,” Horizon managing director Jon Price says.
“Restricted supply and increased demand have resulted in a sustained increase in prices with the initial 25-year mine life at Lilyvale generating an NPV of A$613M at current spot prices.”
“We look forward to the completion of the DFS in 2022 and believe the project can have significant economic development benefits to regional Queensland and the national economy.”
(Up on no news)
A beneficiary of the emerging uranium boom.
This $60m market cap enigma is a “dedicated uranium company” with eight mothballed exploration projects in the Northern Territory and WA.
Its main game is the ‘Bigrlyi’ uranium-vanadium project, where a prefeasibility study (PFS) was completed in 2011 before the uranium price hit the skids.
Work was suspended in 2012 and not much has been done since, despite a healthy bank balance of $15.7m at the end of the last quarter.
But here’s the kicker — the stock is tightly held, with only ~200m shares on issue. Most of this (66%) is held by a subsidiary of the state-owned China Nuclear Power Group (CGN), one of the largest nuclear power providers in the world.
CGN has five more power plants under construction and an additional two planned.
(Up on no news)
While explorer A-Cap is focussed on the ‘Wilconi’ nickel-cobalt project in WA, it also has sneaky exposure to the burgeoning uranium thematic.
The stock says the currently mothballed ‘Letlhakane’ project in Botswana contains one of the world’s largest undeveloped uranium deposits.
“The Company’s Letlhakane uranium project remains an important project asset within the diversified minerals strategy,” A-Cap said late July.
“While the nuclear industry is confident in the long-term fundamentals of uranium and nuclear power, there is less certainty in the short term with industry expectation that the market will gradually move towards balance from calendar year 2025.”
Looks like “balance” could happen sooner than expected.
Having seen @Sprott‘s Physical #Uranium Trust able to drive Spot #U3O8 price Up 29%🚀 in 3 weeks from daily purchases in thin Spot market🌵 am I the only one thinking that momentum traders & hedge funds must be calling up #Nuclear fuel brokers☎️ to set up U trading accounts?🤠🥳 https://t.co/LJQKtjZbhs
— John Quakes (@quakes99) September 5, 2021
The $70m market cap stock is up 157% year-to-date.