Resources Top 5: 'Stacked' Pilbara peggie swarm puts Errawarra and lithium in the spodlight

Errawarra bursts up 100% on ‘large, stacked’ pegmatite swarm at Andover West
Magnum’s share price looks sweet, based on some Saudi JV green pig iron action
ANX, PNN and LMG also in the news for ressie-positive reasons

Here are some of the biggest resources winners in early trade, Monday May 13.

Errawarra Resources (ASX:ERW)

This gold, nickel and lithium explorer is keeping the latter resource well in frame today, with its share price double bagging (105%+ at time of writing) based on a big peggie swarm announcement.

The West Pilbara-focused company has announced it’s identified a “large, stacked pegmatite swarm” at its 100kkm2+ Andover West project, which is about 40km east-southeast of Karratha, WA, and just south of Azure Minerals’ (ASX:AZS) Andover LCT Pegmatite project (now owned by SQM/Hancock).

Andover West has, notes the company, a highly promising exploration target of 100-240mt at 1-1.5% Li2O.

Specific highlights? ERW’s got ’em:

• It’s located a roughly 1.6km x 1km pegmatite swarm with a highly anomalous lithium soil trend that it notes has peak 325ppm Li2O.

• The pegmatites are stacked, low angle and north dipping.

• A second strong, anomalous Li soil trend with a peak of 299ppm lithium has also been found.

• The soil trends are along strike and just 1.7km from Raiden Resources’ (ASX:RDN) lithium pegmatite discovery that reported 3.8% Li2O rock chip.

Executive chairman Thomas Reddicliffe said:

“We believe that we may have only hit the tip of the iceberg with these lithium fertile zones within the pegmatite packages and with their shallow dips we have the opportunity to explore for higher grades down dip.

“Being along strike and in proximity to the Raiden lithium pegmatites we are optimistic of our chances and keen to do some exploratory drilling.”

What next for ERW? A Heritage Clearance Survey is set for this month, plans for drilling are taking shape and field teams are setting up in the Pinderi Hills JV (with Alien Metals) with sampling underway.

ERW share price

Magnum Mining (ASX:MGU)

Magnum Mining has made some sweet gains this morning – to the tune of about 35% intraday at present.

Magnum and Middle East for Metallic Industrial (Midmetal) have entered into an agreement with the Nasdaq-listed V Capital Consulting Limited (VCCL) and 2×1.Digital to raise more than US$210m to advance a green pig iron project in Saudi Arabia.

As an additional note, Magnum is set to “receive no less than US$10m as working capital for its flagship Buena Vista magnetite project in Nevada for the issue, subject to Magnum shareholder approval”.

And… investors in the capital raising will receive ordinary shares in Midmetal to an aggregate interest of 50%.

The main capital raise will fund the building of a 1.1Mtpa HIsmelt pig iron facility in the Kingdom of Saudi Arabia that will see the planned production of green high purity pig iron by Midmetal.

The plan is for the 50-50 joint venture (that’d be Midmetal), to supply green iron for electric arc furnaces, especially in Saudi Arabia, the Middle East, Europe and the USA.

You can read more on this > here.

MGU share price

Anax Metals (ASX:ANX)

Near-term copper-producing junior Anax is on the charge again today.

A company update today reveals that strengthening copper prices have boosted the economics of Anax Metals’ Whim Creek copper project by 32%, increasing pre-tax NPV to $357m and IRR to 74%.

The project is now estimated to generate $520m in free cash flow over an eight-year mine life.

Meanwhile, the company notes there is potential to increase open pit mine-life and cashflow through re-optimisation at higher commodity prices.

Studies have now started on regional processing hub strategy and discussions are continuing with potential offtakers and financiers.

The Evelyn and Salt Creek copper resource extension exploration to be prioritised in the coming field season.

“The Whim Creek asset continues to shape up as a strategic processing hub for the Pilbara,” said Anax MD Geoff Laing.

“The robust standalone project delivers attractive economic outcomes which are highly leveraged to base metal prices,” he noted.

Whim Creek is just 115km from Port Hedland and will process sulphide ore from the Mons Cupri, Whim Creek, Evelyn and Salt Creek deposits through a new 400,000tpa concentrator.

ANX share price

Power Minerals (ASX:PNN)

PNN has diversified itself across a few clean-energy ressie areas, including, recently, a South Australian-located uranium hunt in addition to its chief focus – the Salta Lithium brine project in Argentina.

But its a new niobium-rare earths project in WA’s West Arunta region that’s helping the company catch some attention on from ASX-focused investors today.

And that’s partly, or perhaps mainly, because the project, dubbed Waterlander, is immediately adjacent to WA1 Resources’ (ASX:WA1) major niobium discovery, Luni.

Niobium, by the way, is classified as a critical mineral and is used as a steel-industry strengthening agent, but also, increasingly as an important, battery-life-enhancing component in lithium-ion battery production.

We've expanded our portfolio by acquiring the Waterlander Project (E80/6046) in Western Australia's West Arunta region, adjacent to #WA1 Resources' major Luni #niobium discovery. The region is known for its potential in niobium and rare earth elements.

We aim to conduct ground… pic.twitter.com/ISrvGyoEi3

— Power Minerals Limited (ASX:PNN) (@PowerMin_PNN) May 13, 2024

Power says that the Waterlander ground provides it with an “early-mover opportunity in an emerging world-class niobium-REE exploration precinct” and it plans to undertake targeted field work to define initial drill targets.

This work will include ground gravity and geophysical surveys and detailed magnetic surveys to assist in mapping concealed lithology.

Power already has a significant REE portfolio in its high-grade Dickson Well prospect in South Australia, which has returned a screened value of 14,152ppm (1.4%) TREO.

PNN share price

Latrobe Magnesium (ASX:LMG)

Latrobe Magnesium, which is developing a magnesium production plant in Victoria’s Latrobe Valley using its patented extraction process, is also double digits to the good today.

LMG notes today that it’s the first company in the world to produce magnesium oxide (MgO) from brown coal fly ash – a waste product from brown coal power generation.

Also proudly noted by the company is the fact it’s “the only new magnesium producer in the western world since 2015 with sustainable production emitting 60% less CO2 than the industry average”.

LMG processes 100% of the fly ash feed material to produce five valuable by-products with no further downstream waste or tailings.

Magnesium, used for various applications in the automotive industry, is classified as a critical mineral in multiple countries, with no current producers across Japan, North America, Europe, and the Middle East.

LMG believes that demand for the mineral “particularly ex-China” is expected to grow significantly in coming years.