Resources Top 5: Move over gold, lithium is the safe haven now

MetalsGrove identifies “significant lithium pegmatite potential” at Pilbara projects
Ragusa says lithium drilling starts next week, hits fresh 7-year highs
Dundas now up ~250% since ‘accidentally’ drilling into shallow massive sulphides and ultramafic rocks yesterday

Here are the biggest small cap resources winners in early trade, Tuesday September 27.

METALSGROVE MINING (ASX:MGA)

Lithium stocks continue to outperform the broader metals cohort as investors look desperately for a place to stash their cash.

Leading the charge today was $3m market cap minnow MGA, which identified “significant lithium pegmatite potential” at the Upper Coondina project in the Pilbara.

A surface mapping program highlighted multiple outcropping pegmatite dykes occurring in swarms over an 8km length.

Initial observations suggest the pegmatites at Upper Coondina may be part of the same system hosting Global Lithium’s (ASX:GL1) nearby lithium discovery at the Archer project, MGA managing director Sean Sivasamy says.

“Given this project has never been systematically explored for lithium, we continue to be highly encouraged by these early works,” he says.

“Importantly, data obtained from the mapping program, and other pre-drilling works completed at site, will be used to develop priority drill targets ahead of planned maiden drill program in Q4.”

A program of ~77 RC holes is proposed, MGA says.

MGA — which listed in July with a bunch of early stage lithium, manganese, gold, copper and rare earths exploration assets — is down 20% on its IPO price of 20c per share.

RAGUSA MINERALS (ASX:RAS)

This market darling hit fresh seven-year highs after announcing that maiden drilling at its NT lithium project would start next week.

Additional lithium targets have also been identified, RAS says. One of them boasts a ~150m outcrop width.

“The company is very excited as we prepare to commence our maiden drilling program at our strategic and highly prospective NT Lithium Project,” says chair Jerko Zuvela, also MD at near term lithium producer Argosy (ASX:AGY).

“This puts Ragusa in a strong position to rapidly accelerate the development of our project within a proven high-quality lithium district,” he says.

“We have a significant opportunity to utilise our exploration and development experience to rapidly progress our NT Lithium Project and realise the massive upside value potential in a Tier 1 jurisdiction close to major infrastructure at a time of record lithium prices.”

The RAS share price is now up 450% year-to-date.

DUNDAS MINERALS (ASX:DUN)

(Up on no news)

WA explorer DUN is now up ~250% since hitting shallow massive sulphides and ultramafic rocks in water drilling at the Central Target on Monday.

A complete surprise, the company says.

“The drill rig has already completed three shallow holes, for drilling water, to a maximum depth of 37m,” company says.

“Unexpectedly, massive sulphides were intersected in hole 22CEWB003 (from 17m) and pyrite rich altered stockwork veins, also from 17m, in hole 22CEWB001.”

pXRF readings also picked up anomalous (low grade) cobalt, nickel, copper and silver, the company says.

The main drill hole to test the 450m deep AMT anomaly has now commenced.

The Central Target was initially identified by DUN from an aerial electro-magnetic (EM) survey in late 2021.

Two of the strongest EM anomalies were then confirmed by two audiomagnetotellurics survey lines in March 2022, then drill targets were developed.

“What is most exciting about Central is that there are a series of EM anomalies that extend over a length exceeding 10km,” managing director Shane Volk says.

“As far as Dundas Minerals can determine, there has been no prior exploration ever conducted in this area of the Albany-Fraser Orogen, we are working in an absolute greenfield exploration environment.”

CYGNUS GOLD (ASX:CY5)

CY5 has acquired another 30km of prospective strike around the Pontax project, located in the lithium-rich James Bay province of Canada.

The additional ground hosts known lithium-caesium-tantalum (LCT) pegmatites with high-grade rock chip samples of up to 2.8% Li2O, it says.

The new exploration package also includes the 121sqkm Mitsumis project which is just 12km from the 34Mt @ 0.9% Li2O Rose deposit, currently in feasibility with Critical Elements Lithium (TSXV:CRE).

“Cygnus now has a significant landholding in the worldclass James Bay lithium region along an extensive lithium greenstone belt with known spodumene intercepts,” exec director Michael Naylor says.

“The potential of the James Bay region is immense, and we are committed to being a part of the region’s development.”

This latest acquisition increases Cygnus’s ground position by over 600% and with existing mineralised pegmatites already identified, there is huge potential for further discoveries, Naylor says.

“Work is already underway at Pontax with an extensive exploration program, including a major drilling program in the coming quarter,” he says.

“This work is expected to generate strong news flow over the next 6-8 months, creating value for shareholders and stakeholders as quickly as possible.”

The $37m market cap stock is up 85% since acquiring Pontax in July.

BRIGHTSTAR RESOURCES (ASX:BTR)

First drilling in eight years at the Alpha project in WA has returned high grade gold like 5m at 9.8g/t from 93m, and 2m at 11.3g/t from 88m — indicating the mineralisation is open at depth and along strike.

That means BTR needs to conduct further drilling to find the edges of the lode.

“Brightstar is excited to renew exploration and resource development at Alpha after eight years without significant activities on this project,” BTR managing director Bill Hobba says.

“This first round of drilling shows potential for further extensions of this western zone of the project in an area that has not previously been mined.

“When combined with potential for growth of the main Alpha lode we are eager to discover the true scale of this mineralised system.”

The $10.6m market cap junior is down 56% year-to-date.