Resources Top 5: The ASX ‘can’t stop, won’t stop’ talking about lithium

Azure Minerals produces ‘exceptional’ lithium hits from Andover

Marquee Resources continues astronomical climb in share price after MIN farm-in deal

Winsome winning some more hearts and minds with more slick results from Adina

Here are the biggest small cap resources winners in early trade, Tuesday June 13.

Azure Minerals (ASX:AZS)

Mark Creasy and SQM-backed AZS has announced “exceptional” lithium hits from its Andover project in WA’s western Pilbara, and investors have started pouring in fiercely in early trade today.

Seven of the first eight diamond holes testing pegmatites returned high grades, with a notable drill intercept of 105m @ 1.26% Li2O from 256.3m in hole ANDD0208, including 42.1m @ 2.51% Li2O from 259m and 22.8m at 3.57% Li2O, with a 0.5m stretch at 5.02% Li2O.

Other intercepts contained:

54.4m @ 1.07% Li2O from 310.5m in ANDD0206, including 7.4m @ 1.93% Li2O from 357.5m

52.1m @ 0.91% Li2O from 22.3m in ANDD0208, including 14.4m @ 1.59% Li2O from 22.3m and 8.6m at 1.56% Li2O from 65.8m

38m @ 0.97% Li2O from 442m in ANDD0202, including 17.5m @ 1.35% Li2O from 442.5m, and 8.9m at 1.72% Li2O.

Anything over 1% Li2O is considered ripe for development in today’s market.

AZS MD Tony Rovira said the results highlight the exceptional thickness and high grades of lithium mineralisation and the potential for Andover to host lithium resources of world-class scale and tenor.

“It is pleasing that our visual estimates of the spodumene content observed within the drill core correlate very closely with the assays,” Rovira said.

“The successful intersection of significant quantities of spodumene mineralisation over substantial widths demonstrates our potential to deliver more broad, strongly mineralised intersections.

“Additionally, across the project area, our geologists have identified at least another eight zones hosting multiple outcropping spodumene-rich pegmatites with previously reported surface sampling returning high grades of lithium over significant strike lengths.”

Further assay results are expected to be released within the next two weeks and more drill rigs are set to be mobilised to site to test high-priority targets.

With a market cap of ~$345m, AZS shot up 68% on open today, settling down to a still very impressive 38% rise in early trade.

Artemis Resources (ASX:ARV)

(Up on no news)

ARV’s share price hike today could be piggybacking on the news out of Azure, and there might be some merit to that since its Carlow Castle lithium project is just 3km from its Andover prospect.

However, Carlow Castle – part of the explorer’s Greater Carlow project – is pegged as a gold-copper-cobalt deposit with an exploration target of 2.5Mt-5.0Mt @ 2.5g/t-3.1g/t for 200,000oz-500,000oz of gold.

ARV interim CEO Dr Simon Dominy said that with well-serviced infrastructure on its doorstep including power, roads and port access, the Greater Carlow project has upside potential for resource development.

“The Artemis technical team have been working to prepare for an active and successful exploration season around the Greater Carlow project area,” Dr Dominy said.

“The company is making a concerted effort to identify and assess new prospective targets as part of its plan to add gold ounce equivalents to the project.”

ARV’s market cap increased to $17.6m after a 27% increase in share price this morning.

Winsome Resources (ASX:WR1)

Winsome have won-some more backing from investors after discovering a new lithium-bearing pegmatite dyke swarm at its Adina project in the James Bay lithium precinct in Canada.

The drilling update from its recently discovered Footwall Zone returned strong lithium mineralisation in 12 holes, including 1.72% Li2O over 17.3m from 215.3m at hole AD-23-022, as well as 1.32% Li2O over 26.0m from 215.5m and 1.71% Li2O over 11.4m from 281.7m at hole AD-23-047.

Assays were also received from the project’s Main Zone, showing 2.04% Li2O over 26.4m from 57.0m, including 1.93% Li2O over 25.5m from 116.7m at hole AD-23-027, depicting thick, near-surface intersections.

Located near Ken Brinsden-backed Patriot Battery Metals’ (ASX:PMT) Corvette discovery, WR1 raised $60m for Adina earlier this year, aided by Canada’s Flow Through Share Scheme, and is targeting a maiden resource with eyes on production by 2026-27.

While only up 3.5% in this morning’s trade, WR1 looks to be again catching the eye of investors after a lull down to $1.27 in late April. This time last year, WR1 shares were worth just over 24c.

Marquee Resources (ASX:MQR)

(Up on no news)

It seems the clout of Chris Ellison’s MinRes (ASX:MIN) has continued to push MQR’s share price further into the clouds as the buzz of MIN’s farm-in to lithium rights at its West Spargoville Project (WSP) has sent the share price skyrocketing once more after a long weekend for the ASX.

For those wanting a recap of what’s going on, WSP is in the lithium-rich southern Yilgarn region of WA, where MIN’s own 71Mt Mt Marion lithium mine is, not to mention Liontown Resources’ (ASX:LTR) 15Mt Buldania, Essential Metals’ (ASX:ESS) Pioneer Dome and the 26Mt Bald Hill mine.

In a JV model, MIN has acquired an initial 25% stake into the lithium rights at WSP with a $4.8m spend on exploration within a year, packaged with processing and exploration farm-in options on the table for MIN to acquire 70% and 51% of lithium rights respectively.

It seems like a good time to be a lithium junior anywhere near MIN’s domain, with the WA mining major even snapping up a blocking interest in ESS to prevent Independence Group (ASX:IGO) and Chinese partner Tianqi to acquire the company recently.

Stay tuned for further news on what’s happening at WSP, as MQR and MIN said future exploration details are set to be announced “in the near term”.

The ~$16m market-capped junior is up another 34% in early trade today.

Black Mountain Energy (ASX:BME)

Ok, we can’t talk ALL about lithium, so let’s see why oil and gas play Black Mountain Energy has had a 20% jump in share price so far today.

BME has just commenced drilling its first Permian Basin well at its recently acquired Half Moon project in New Mexico, early signs the company is getting serious with its US prospects after tapping the market for $4.25m back in February.

BME COO Michael Laurent said the company was pleased to be drilling its first Permian Basin well.

“We look forward to providing shareholders with milestone updates on this inaugural activity along with further planning details around developing the Half Moon prospect in the Permian Basin,” Laurent said.

The drilling phase is expected to take ~25 days, while the first production is anticipated within three months.

Black Mountain also has a focus in WA gas with its Valhalla project in the Canning Basin which it’s looking to get off the ground with a portion of the capital raising funds.

It will interesting to see how the company plays both interests in tandem. BME’s market cap is up to $7.66m today.

While Marquee Resources and Azure Minerals are Stockhead advertisers, they did not sponsor this article.