Resources Top 5: The baby lithium stocks are bouncing

Pic: twomeows, Moment/ Via getty Images

Westar now at 12-month highs after reporting multiple pegmatites up to 44m thick at the Olga Rocks project on May 15
Gold production “imminent” from Auric’s 48,000oz Jeffrey’s Find mine
Renegade hits more copper sulphide zones up to 20m thick at the Mongoose project

Here are the biggest small cap resources winners in early trade, Tuesday May 23.

WESTAR RESOURCES (ASX:WSR)

More friskiness from ‘Lithium Trade of the Week’ WSR, which is now at 13-month highs after hitting “multiple thick pegmatites” ~44m thick at the Olga Rocks project in WA.

Nothing really new to report since that May 15 announcement, so we’ll just leave this here. Assays are expected in four weeks.

Li specs running mad, $VSR last wk. $WSR today. Scalped 6 ticks $WSR bloody hard work this daytrading thingy. Patterns here: sub $10m MC, drilling. Potential next cab off the rank: $TMX 0.6 about to start drilling Li $RMX 0.4 drilling about to start, clay Li tho, $RGL higher cap

— Treasurehunter (@ASXTreasurehunt) May 15, 2023

PRS is also enjoying a strong run since unveiling a potential rare earths monster at the recently acquired Jokikangas project in Finland, where old drill core returned intercepts over a strike length of 4km.

Highlights included 0.20m @ 24,448ppm TREO and 4,700ppm niobium from 74.2m (sampling was limited to very narrow intervals for academic purposes, PRS says).

The explorer has started sampling wider intervals of the Jokikangas drill core, which includes 36 diamond drill holes at Jokikangas and 68 diamond drill holes at Korsnas.

Korsnas surrounds a former lead mine, where previous operators reported total REE content in samples ranging from 0.7% to 2.2%, PRS says.

The old tailings dump provides a readily accessible REE target that can be relatively quickly explored, PRS says.

Things are now looking up for the $10m capped stock, which has struggled since listing as a gold explorer late 2020.

It is up 135% year-to-date.

AURIC MINING (ASX:AWJ)

Gold production is “imminent” from the 48,000oz Jeffrey’s Find gold mine in WA, a partnership between AWJ and Kalgoorlie mining contractor BML ventures.

Commencing late-May, between 100,000-150,000 tonnes of ore will be hauled to the Greenfields Mill at Coolgardie where it will be toll treated.

First gold pour is expected early July.

BML Ventures, responsible for all mining-related costs, will recoup expenses before surplus cash is split 50/50 between BML and AWJ.

Mining is planned in two stages: a starter pit and final pit.

First cashflow for AWJ will occur September/October, the company says.

“This is an important stage in Auric’s growth; to be generating cash within the next six months with negligible downside to Auric is a terrific result,” managing director Mark English says.

“The cash generated will be used to advance our exploration projects and Munda gold deposit. Our timing is perfect with the surging Australian gold price.”

Gold is currently paying $2955/oz in Aussie dollar terms, which is close to record highs.

MTM CRITICAL METALS (ASX:MTM)

(Up on no news)

The explorer formerly known as Mt Monger acquired a Canadian rare earths-niobium exploration project called Pomme in February.

Proceeds from a recent $3m raise will be used for a maiden drill campaign and metallurgical testwork at Pomme, which it bought from TSX listed explorer Geomega Resources for ~$1m in cash and shares.

The company says Pomme has similar geology to Geomega’s advanced 266Mt Montviel carbonatite REE-Nb deposit, just 7km away.

Just two holes were punched into Pomme back in 2012, but they both returned thick mineralised intersections interspersed with high grade chunks, including a highlight 508.3m @ 0.43% TREO, 413ppm Nb2O5 and 1.48% P2O5, from 73.7m depth.

Meanwhile, MTM has unearthed a 3km-long laterite nickel discovery at seahorse, part of the East Laverton project in WA.

Results include 28m @ 0.95% Ni, 10m @ 0.10% Co and 21m @ 0.97% Cr.

Rare earth element mineralisation up to 1,850ppm TREO was also reported in the mineralised drilling intersections.

The $11m capped stock is up 60% year to date.

RENEGADE EXPLORATION (ASX:RNX)

A recently completed 1600m drilling campaign is hitting more copper sulphide zones up to 20m thick at the Mongoose project near Cloncurry, QLD.

Highlights from two holes include 20m of visible chalcopyrite mineralisation from 113m and 14m of visible chalcopyrite mineralisation from 171m.

The mineral chalcopyrite is major source of copper metal.

But these visuals aren’t a substitute for actual assays, which are due in 6-8 weeks.

Mongoose was part of the 23%-owned Carpentaria Joint Venture (CJV) with mining major Glencore. This year RNX inked a deal to excise Mongoose from the JV, making it sole operator and funder.

RNX also received a query today from the ASX about maintaining confidentially of assay results; its second in two months.

“The company relies on the procedures in place at ALS Mt Isa to ensure confidentiality of client assay results,” it says.

“Internally, the managing director and exploration manager are the first persons in the company to receive assay results.

“When this information has been reviewed it is only distributed to other board members, who are experienced company directors and are aware of their responsibilities under the Listing Rules in relation to information that has not yet been released to the market.”

$20m capped RNX has come off April highs but is still up 60% year-to-date.

Lithium Rare Earths