Uranium Equities wins big with 150pc jump after lithium discovery
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Investors jumped onboard Uranium Equities after it identified a “stand out” 2km lithium-beryllium anomaly at its Dundas project near Norseman in Western Australia.
The stock (ASX:UEQ) soared as much as 150 per cent to 1.5c before settling at 1.3c by Tuesday’s close — still up 117 per cent for the day.
UEQ was the best-performing ASX small cap on Tuesday with more than 57 million shares changing hands.
A review of an extensive geochemical database identified the 2km lithium and beryllium anomaly.
The presence of beryllium with lithium at Dundas is noteworthy given the close association beryllium has with other lithium-hosting pegmatites, such as the world-class Greenbushes lithium-pegmatite deposit.
Pegmatites are rocks formed from lava or magma that often contain rare earth minerals and crystals. They are the primary source of lithium.
Greenbushes is one of the biggest rare-metal pegmatite deposits in the world.
The company’s tenement area sits on the edge of the Albany-Fraser Orogen.
UEQ believes the strong lithium and beryllium values, together with the scale of the anomaly, could indicate underlying pegmatites within the Albany-Fraser Orogen.
The lithium potential of the region is highlighted by the Pioneer Dome lithium, caesium and tantalum project owned by Pioneer Resources and the Bald Hill lithium project under development by Tawana Resources.
UEQ managing director Brendan Bradley said the size and coincidence of the lithium and beryllium anomaly identified at Dundas stood out within the region. Along with its proximity to other known lithium deposits further north, the discovery was a compelling exploration opportunity.
UEQ has held Dundas since June, having pegged the area originally for gold given its proximity to the nearby high-grade Viking gold project owned by Genesis Minerals.
UEQ has a market cap of around $8 million.