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Resources Top 5: Red hot critical minerals are having a moment in the sun
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- Hammer now up~190 per cent since making QLD copper-gold discovery
- Lithium play Lake raises $20m at a share price premium
- Graphite explorer Blackearth also riding wave of positive battery metals sentiment
Here’s your top ASX small cap resources winners in morning trade Monday, January 25.
(Up on no news)
This micro-cap graphite explorer is now up ~70 per cent over the past week on no news.
In response to an ASX query last week it pointed to “several recent media reports about increasing world demand for clean energy battery products and references to the growing demand for graphite products that contribute to the manufacture of lithium-ion batteries”.
A Bankable Feasibility Study (BFS) — an advanced study designed to attract financing — on Blackearth’s Maniry graphite project in Madagascar is due to be completed this year.
An extended drill program will follow-up a recent copper-gold discovery before the Queensland wet season hits.
Hammer has surged ~190 per cent since announcing thick intercepts like 55m at 1.12 per cent copper and 0.3 g/t gold in two wide-spaced holes at the Trafalgar prospect, part of the Mount Isa joint venture.
The additional holes will be drilled from the opposite direction “to confirm the width and continuity of mineralisation”. An additional hole will also be drilled ~80m to the north.
Lithium is critical mineral that is well and truly back in favour with investors.
This explorer just raised $20.6m from overseas institutional investors at a 12 per cent premium to its 10 day volume weighted average share price (VWAP).
Lake’s flagship Kachi lithium brine project now fully funded through to the construction phase in 2022, it says.
“This transaction places the company in its strongest financial position ever,” managing director Steve Promnitz says.
“Lake will hold in excess of A$25 million following this placement and anticipates a further $6m to be added by July as existing options convert.”
(Up on no news)
Another critical metals play on a red hot role, Ionic is now up +140 per cent since the start of 2021.
Recent ‘infill drilling’ (designed to increase confidence in the known resource) confirmed rare earths continuity and grade, with numerous high-grade zones intersected.
A resource update will kick off once results come in from the final 34 holes of the program, expected before the end of the month.
KING ISLAND SCHEELITE (ASX:KIS)
(Up on no news)
King Island Scheelite (ASX:KIS) is hoping to redevelop the high grade Dolphin Tungsten mine on King Island near Tassie for about $65m.
Tungsten is a super hard metal considered a ‘critical mineral’ because China dominates supply.
The 14 year operation will have a net present value (NPV) and internal rate of return (IRR) of $241 and 43 per cent, respectively.
Both NPV and IRR are metrics used to assess the profitability of a project – the higher the number is above 0, the more profitable it will be.
