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20 More Large Lithium Mines Need to be Operating by 2030 to Hit Paris Targets

To meet lithium demand in the Paris-aligned scenario, by 2030 we would need 20 more mines the size of Greenbushes … Read More
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This article was originally published by Stockhead
  • To meet lithium demand in the Paris-aligned scenario, by 2030 we would need 20 more mines the size of Greenbushes in WA, currently the world’s largest: WoodMac
  • Can solid state batteries complete on cost? Not this decade
  • Near term miner AVZ hits another all time high

Our High Voltage column wraps all the news driving ASX stocks with exposure to lithium, cobalt, graphite, nickel, rare earths, and vanadium.

 

These are latest forecasts for metals demand in two scenarios: WoodMac’s base case forecast, in blue, and a Paris-aligned scenario on track to limit global warming to less than 2 degrees, in green:

The difference is enormous, WoodMac’s Ed Crooks says.

“To meet that demand for lithium, for example, in the Paris-aligned scenario, by 2030 we would need 20 more mines the size of Greenbushes in Western Australia, currently the world’s largest,” he says.

The monster Greenbushes mine next to its namesake town in South West WA. It’s like the Kalgoorlie Super Pit of lithium. Pic: Google Earth

 

Twenty additional world class mines in less than a decade. The process from exploration, through to resource definition and mining studies, financing and construction takes five years at the very least.

WoodMac is sceptical it can be achieved.

 

They aren’t the only ones. Last week, Benchmark Mineral Intelligence noted that a Glasgow climate conference declaration to phase out sales of petrol and diesel vehicles by 2040 would mean a +3000% increase in annual electric vehicle battery demand.

That’s 7 million tonnes of lithium (LCE) annually, which is 17 times more than lithium chemical production in 2021, and ~5 million tonnes of nickel sulphate, 19 times more than nickel sulphate production in 2021.

 

Can solid state batteries complete on cost? Not this decade

‘Solid state’ technology promises a battery that is higher capacity, higher density, higher performance, non-flammable, and quicker to charge – almost comparable to filling a car with fuel. It also doesn’t require cobalt.

However, most electric vehicles (EV) are unlikely to use more powerful solid-state and lithium metal batteries this decade as the tech will struggle to compete on costs, according to Benchmark.

“Lithium metal battery production capacity is set to reach 260 GWh by 2030, based on the current pipeline, as startups commercialise next generation technologies,” it says.

“But that won’t be enough to push costs below conventional lithium-ion batteries used in EVs.

“Unless solid-state can achieve cost parity, the promised benefits may not be sufficient for a technology shift in the mass-market electric vehicle segment.”

 

Battery Metals Winners and Losers

Here’s how a basket of ASX stocks with exposure to lithium, cobalt, graphite, nickel, rare earths and vanadium are performing>>>

 
 
CODE COMPANY 1 WEEK RETURN % 1 MONTH RETURN % 6 MONTH RETURN % 1 YEAR RETURN % PRICE MARKET CAP
PSC Prospect Resources 28 53 331 452 0.69 $ 289,253,386.13
AVZ AVZ Minerals 25 114 363 708 0.695 $ 2,140,084,832.20
MLS Metals Australia 25 25 25 25 0.0025 $ 13,096,393.40
NIC Nickel Mines 21 26 39 34 1.33 $ 3,231,812,330.54
CNJ Conico 16 -3 28 -8 0.037 $ 38,008,165.21
GAL Galileo Mining 15 -6 -20 7 0.235 $ 41,260,255.23
DEV Devex Resources 13 97 125 121 0.63 $ 213,625,265.36
STK Strickland Metals 12 -16 208 -28 0.074 $ 92,615,269.28
GSR Greenstone Resources 12 12 38 -19 0.029 $ 21,710,124.60
ARL Ardea Resources 11 13 20 28 0.55 $ 69,017,109.50
BOA Boadicea Resources 11 5 -33 -8 0.21 $ 17,093,976.90
SBR Sabre Resources 10 10 10 -50 0.0055 $ 9,291,225.07
IXR Ionic Rare Earths 9 23 85 243 0.048 $ 162,835,176.67
POS Poseidon Nick 8 -2 58 37 0.1025 $ 337,035,547.86
LYC Lynas Rare Earths 8 26 65 155 8.63 $ 7,724,642,902.24
VRC Volt Resources 8 -13 -30 180 0.028 $ 71,489,983.19
REE Rarex 8 10 24 -14 0.1075 $ 51,933,218.46
LEL Lithium Energy 7 57 123   1.05 $ 43,875,000.00
GL1 Globallith 7 62 178   0.68 $ 65,248,287.60
MIN Mineral Resources. 7 12 2 47 44.02 $ 7,937,374,368.33
LTR Liontown Resources 7 4 355 691 1.755 $ 3,278,528,425.13
AQD Ausquest 7 -6 -24 -11 0.016 $ 13,171,037.30
AR3 Austrare 6 14     0.92 $ 41,648,494.11
MRD Mount Ridley Mines 6 21 42 240 0.0085 $ 45,132,273.50
NVA Nova Minerals 5 -2 9 -32 0.1525 $ 297,336,196.91
GME GME Resources 5 -12 12 55 0.065 $ 38,015,408.77
NTU Northern Min 5 39 94 106 0.068 $ 339,850,557.62
BEM Blackearth Minerals 4 4 4 191 0.125 $ 26,630,920.21
CLA Celsius Resource 4 -3 -35 -26 0.028 $ 30,369,614.35
OZL OZ Minerals 3 6 3 78 26.355 $ 8,648,336,900.16
PLS Pilbara Min 3 21 134 342 2.53 $ 7,377,970,864.96
CXO Core Lithium 3 -7 143 1089 0.5825 $ 950,646,724.47
RBX Resource B 3 -5 444 444 0.185 $ 7,190,565.30
IGO IGO 3 8 42 116 10.31 $ 7,837,721,864.55
VMC Venus Metals Cor 3 15 15 -19 0.195 $ 29,460,343.19
MLX Metals X 3 5 63 364 0.39 $ 358,370,096.47
CWX Carawine Resources 2 -2 -18 -28 0.21 $ 26,541,863.99
EMH European Metals Hldg 2 11 16 83 1.46 $ 182,128,751.00
HAS Hastings Tech Met 2 -6 55 96 0.255 $ 443,306,261.64
ORE Orocobre 2 6 59 179 9.74 $ 6,081,994,090.44
MOH Moho Resources 2 -5 -27 -45 0.06 $ 7,546,524.12
BHP BHP Group 2 1 -20 5 38.07 $ 107,920,195,992.52
SRL Sunrise 1 -4 -7 -29 1.895 $ 170,659,680.71
PAN Panoramic Resources 0 0 52 81 0.235 $ 471,710,220.92
FFX Firefinch 1 7 51 379 0.695 $ 661,517,327.96
LPI Lithium Pwr Int 1 13 143 95 0.4975 $ 169,153,376.28
CTM Centaurus Metals 0 -1 49 101 1.105 $ 367,790,085.64
AJM Altura Mining 0 0 0 0 0.063161 $ 214,798,472.24
LML Lincoln Minerals 0 0 0 0 0.008 $ 4,599,869.49
RMX Red Mount Min 0 33 33 -14 0.012 $ 17,573,499.62
ALY Alchemy Resource 0 -8 -28 -35 0.012 $ 11,428,138.68
ATM Aneka Tambang 0 -6 3 3 1.03 $ 1,342,758.47
BRB Breaker Res NL 0 25 125 113 0.405 $ 135,223,985.54
SRI Sipa Resources 0 -2 -2 -25 0.054 $ 10,821,399.39
NMT Neometals 0 31 146 420 1.135 $ 625,149,091.44
GBR Greatbould Resources 0 -26 45 149 0.145 $ 50,013,013.26
VIA Viagold Rare Earth 0 0 2339 10426 2 $ 166,624,808.00
PAM Pan Asia Metals -1 -12 308 229 0.51 $ 36,829,322.00
PLL Piedmont Lithium Inc -1 7 9 127 0.85 $ 455,349,345.00
SGQ St George Min -2 -14 -25 -52 0.062 $ 35,940,647.16
G88 Golden Mile Res -2 -6 -18 -9 0.049 $ 8,208,879.74
AUZ Australian Mines -2 -10 25 35 0.0225 $ 94,678,300.51
S2R S2 Resources -2 147 33 -17 0.22 $ 71,274,971.00
AXE Archer Materials -2 -4 115 180 1.485 $ 374,912,818.61
NWC New World Resources -3 -4 -23 40 0.077 $ 122,194,664.59
WKT Walkabout Resources -3 -3 3 52 0.19 $ 81,417,340.23
RXL Rox Resources -3 -1 -23 -51 0.38 $ 59,890,893.32
CHN Chalice Mining -3 41 25 163 9.69 $ 3,510,500,363.80
ARR American Rare Earths -3 -10 127 59 0.175 $ 61,156,568.20
LPD Lepidico -3 83 265 428 0.0475 $ 292,300,460.17
MCR Mincor Resources NL -3 -7 30 26 1.255 $ 605,434,200.00
VUL Vulcan Energy -3 -24 54 376 10.24 $ 1,349,797,281.70
PVW PVW Res -3 0 214 193 0.44 $ 31,518,703.13
AOU Auroch Minerals -3 -19 -29 -15 0.145 $ 52,818,086.40
AAJ Aruma Resources -4 -7 20 -25 0.079 $ 9,950,958.74
LIT Lithium Australia NL -4 4 13 150 0.13 $ 127,888,665.38
INR Ioneer -4 0 104 177 0.6925 $ 1,445,636,621.30
MRC Mineral Commodities -4 -17 -42 -65 0.12 $ 64,198,876.08
RNU Renascor Res -4 -8 64 991 0.12 $ 226,635,139.20
PGM Platina Resources -4 -9 12 52 0.067 $ 28,669,234.57
ESR Estrella Res -4 -7 -33 -71 0.0335 $ 38,842,443.42
MMC Mitremining -5 -5     0.21 $ 5,958,722.00
TON Triton Min -5 25 -2 -5 0.04 $ 45,378,722.68
FGR First Graphene -5 -9 -20 11 0.2 $ 115,525,407.06
GLN Galan Lithium -5 35 125 520 1.52 $ 448,652,876.95
MAN Mandrake Res -5 -15 -67 -33 0.056 $ 27,867,583.06
VR8 Vanadium Resources -5 -10 47 177 0.072 $ 36,902,765.17
LEG Legend Mining -5 -31 -53 -48 0.052 $ 140,511,921.77
CHR Charger Metals -5 5     0.43 $ 13,773,345.05
AML Aeon Metals . -6 -16 -39 -68 0.046 $ 40,514,847.93
BUX Buxton Resources -6 30 -5 29 0.09 $ 13,605,543.20
PEK Peak Resources -6 -15 -28 45 0.0665 $ 137,162,854.81
IPT Impact Minerals -7 0 -13 -36 0.014 $ 26,309,333.95
ILU Iluka Resources -7 -10 13 63 8.515 $ 3,576,059,789.90
COB Cobalt Blue -7 -5 22 290 0.39 $ 119,398,738.80
SYR Syrah Resources -7 7 15 75 1.2 $ 600,975,341.22
EGR Ecograf -7 -1 11 282 0.63 $ 303,975,084.83
SYA Sayona Mining -8 -5 393 2147 0.1525 $ 1,056,720,846.60
JRV Jervois Global -8 -10 13 110 0.535 $ 849,115,070.16
PUR Pursuit Minerals -8 3 -53 169 0.035 $ 34,669,514.89
CZN Corazon -8 -13 -5 -42 0.035 $ 10,547,499.98
NKL Nickelx -8 -18 -18   0.115 $ 6,918,750.00
AZL Arizona Lithium -8 38 267 900 0.11 $ 213,780,195.97
JRL Jindalee Resources -8 -1 -9 194 2.355 $ 135,259,915.00
SLZ Sultan Resources -9 -11 -43 -32 0.16 $ 10,951,666.27
MNS Magnis Energy Tech -9 60 112 242 0.615 $ 475,585,652.84
VML Vital Metals -9 2 15 107 0.06 $ 249,928,985.04
ASN Anson Resources -9 63 154 353 0.145 $ 148,102,895.60
EUR European Lithium -10 33 150 233 0.14 $ 155,943,245.99
ARN Aldoro Resources -10 13 43 191 0.465 $ 40,011,115.05
LOT Lotus Resources -10 -3 64 233 0.32 $ 305,711,940.24
ESS Essential Metals -10 19 142 150 0.22 $ 51,088,294.41
PNN PepinNini Minerals -10 33 139 307 0.61 $ 28,095,333.00
TMT Technology Metals -11 -13 -1 -21 0.335 $ 64,354,599.50
BKT Black Rock Mining -11 -5 28 141 0.205 $ 166,781,540.84
HYM Hyperion Metals -11 -12 -12 252 0.88 $ 131,816,624.00
BMM Balkanminingandmin -12 -31     0.49 $ 15,392,500.00
BSX Blackstone -12 -12 51 57 0.565 $ 213,957,517.20
LKE Lake Resources -12 -3 219 1409 0.86 $ 1,105,887,900.39
AVL Aust Vanadium -12 6 28 113 0.0255 $ 85,316,636.76
QEM QEM -12 19 13 169 0.215 $ 23,251,783.27
AGY Argosy Minerals -13 12 218 383 0.28 $ 353,194,666.72
PRL Province Resources -13 6 -3 1337 0.165 $ 186,393,868.82
ADD Adavale Resource -13 -22 -53 -2 0.046 $ 16,146,881.31
TKL Traka Resources -13 -13 -19 -38 0.013 $ 8,087,402.62
INF Infinity Lithium -13 11 191 56 0.195 $ 86,707,414.29
QXR Qx Resources -14 -17 67 39 0.025 $ 16,959,058.03
RLC Reedy Lagoon Corp. -14 59 153 291 0.043 $ 23,761,151.30
RFR Rafaella Resources -14 -6 -27 -14 0.073 $ 13,733,454.10
ADV Ardiden -14 9 20 -48 0.012 $ 25,840,024.27
GED Golden Deeps -14 0 9 -25 0.012 $ 10,086,068.72
AZS Azure Minerals -14 -1 33 -56 0.36 $ 109,956,180.96
A8G Australasian Gold -15 -20 226   0.555 $ 22,718,886.52
TNG TNG -15 -27 -7 -18 0.077 $ 105,518,989.76
FRS Forrestaniaresources -16 -3     0.36 $ 9,256,500.00
QPM Queensland Pacific -17 -17 82 456 0.2 $ 257,566,494.89
TLG Talga Group -17 14 14 -9 1.73 $ 537,803,476.04
ARU Arafura Resource -17 0 30 124 0.215 $ 341,091,813.04
GW1 Greenwing Resources -18 53 48 123 0.445 $ 50,764,288.58
HNR Hannans -18 18 478 478 0.04 $ 117,282,216.42
HXG Hexagon Energy -25 2 -2 39 0.086 $ 40,141,244.43
CAE Cannindah Resources -35 -17 205 596 0.195 $ 123,074,362.39

 

 

Weekly Standout Stocks

AVZ MINERALS (ASX:AVZ)

$2.24bn market cap AVZ just hit another all-time high, despite its flagship Manono lithium-tin project being in one of the most volatile mining jurisdictions in the world, the Democratic Republic of Congo.

In the last week alone gunmen allegedly kidnapped five Chinese gold miners workers in the country’s conflict-plagued east; another attack saw 12 killed in the northeastern Ituri province.

AVZ is much further south in the Tanganyika province, which “often witnesses violent clashes between its different communities, driven by social tensions and land disputes”, according to Reuters.

On top of that, there are the proposed routes to get its product from the almost landlocked country all the way to ports in Tanzania and Angola, which involves ferry, road and rail transportation:

For AVZ and its Chinese backers the world class, +30-year Manono project is a high risk, very high reward proposition.

If everything goes according to plan – which it is, so far — Manono could be one of the next globally significant lithium mining operations.

Over the past financial year, the company has locked in long-term, binding sales agreements with three major Chinese lithium converters for 80% of its spodumene production, as well as a three-year binding offtake agreement with a major participant in the tin market.

In September it secured a cornerstone investor, Suzhou CATH Energy Technologies, to underpin project development. CATH will pay US$240 million cash for a 24% equity interest in the project, with further amounts to be paid as its pro rata portion of funding to develop the mines.

From a licensing and permitting perspective, AVZ says it is confident “that our excellent relationship with the DRC Government will soon deliver our all-important Mining Licence and the other agreements”.

“The granting of our Mining Licence will facilitate the release of the updated Manono Bankable Feasibility Study (BFS) and shortly thereafter, we are expecting to announce the appointment of a Mandated Lead Arranger (MLA) to lead a syndicated debt funding facility for the Project,” AVZ chairman John Clarke says.

“Importantly, the debt component of funding will be less than 50% on the basis of the CATH transaction.

“Once the deal with CATH is finalised, the Board will be able to make a Final Investment Decision (FID) which will kick-start project construction.”

 

The post High Voltage: We need to build 20 large lithium mines by 2030 to hit Paris targets appeared first on Stockhead.

Author: Reuben Adams

Energy & Critical Metals

The House’s Build Back Better Act is a milestone for place-based solutions

Last week, the House of Representatives passed the Build Back Better Act, which boasts an array of social and climate programs, ranging from generous support…

By Mark Muro, Robert Maxim, Anthony F. Pipa, Yang You, Colleen Dougherty

Last week, the House of Representatives passed the Build Back Better Act, which boasts an array of social and climate programs, ranging from generous support for child care, paid leave, and new health benefits to renewable electricity tax credits.

Democrats are trumpeting the vote as a major milestone, although the bill’s passage is only a waystation en route to a tougher showdown in the Senate.

Yet beneath the bill’s main events resides something else important: an impressive collection of “place-based” programs targeted at helping particular places and their residents thrive, rather than helping people more generally wherever they live. Tucked into the $2.2 trillion bill are numerous place-based programs aimed at combating the nation’s epidemic of uneven development, with spatially targeted funding that would promote a more equitable distribution of economic growth across the country.

Some of the pending place-oriented programs would boost the nation’s regional innovation capacity by investing hundreds of millions of dollars in regional tech hubs, manufacturing institutes, and regional industry clusters. Others would provide block grants so distressed labor markets can expand employment opportunities. And still others would channel multiyear investments into communities to help with energy and industrial transitions, community revitalization, and rural partnerships.

 

An initial count finds more than 30 place-centric programs in the legislation that would fund translational research at universities; bolster supply-chain resilience around ports; accelerate the deployment of low- and zero-emissions technologies; promote rural prosperity, establish incubator spaces for Main Street small businesses in underserved communities, and provide funding for Indigenous communities. Add it all up and these items—mostly unheralded in media coverage of the package but major in the history of U.S. place-based policy—represent a genuine breakthrough for the growing recognition that smart investments aimed at strengthening the economies of particular regions or localities can enhance overall welfare and prosperity.

For much of the postwar 20th century and into the 2000s, federal policy discussions looked askance at place-based policy while minimizing the problems it aimed to address. During the early postwar period, market forces reduced job, wage, investment, and business formation disparities between regions and (to some extent) neighborhoods; for example, as the South began to catch up economically with the rest of the country.

Given that, the economic and policy mainstream felt it could trust what it believed was the self-regulating and benign nature of the market’s impacts across different places and communities. Consequently, Washington, D.C. and economic elites remained skeptical of ideas that would counter the nation’s spatial divides, belaboring the mixed record of early place-based interventions that directed resources toward particular geographic areas.

Yet even as policymakers maintained their faith in the self-regulation of the market, it was no longer operating in the way they talked about it. Since the 1980s, and with intensified force in the last decade, regional and neighborhood fortunes have ceased converging and have been sharply diverging, with disastrous impacts on thousands of urban and rural communities.

Map 1

The results of the 2016 election underscored the nation’s geographic crisis and prompted a surge of place-oriented research from scholars at Brookings, including Brookings Metro, the Hamilton Project, and the Center for Sustainable Development, as well as scholars at other research organizations such as the Economic Innovation Group, Harvard University, the Washington Center for Equitable Growth, the Aspen Institute, and the Massachusetts Institute of Technology, among many others.

That welcome burst of attention, paired with advances in the theory and practice of place-based economic development, has led to a broad reassessment of the gravity of the nation’s geographical divides, the need to respond, and the possibility of success. Reflecting that, the Build Back Better Act represents the most significant American embrace of place-based ideas since the Great Society—or maybe even the New Deal. In short, if the act is passed, it will launch a major new period of place-focused investment and local problem-solving.

Of course, success is not guaranteed. To begin with, the House bill’s place-based and related prosperity provisions must survive a tough gauntlet in the coming weeks. That’s because the House bill now heads to the Senate, where getting to “yes” might require paring back various provisions—although one would think the place-based elements would be especially pertinent to states like West Virginia and Arizona, home to the bill’s main Democratic critics, Sens. Joe Manchin and Kyrsten Sinema.

Beyond that, the new place-based policies will face numerous implementation challenges. Depleted federal agencies will need to renew their proficiency at program design and rulemaking to ensure any new place-based proposals are well crafted and user-friendly. Smart rulemaking and design detail will be particularly important given the mixed record of some earlier place-based efforts.

Potentially even more challenging will be getting resources to the highly distressed and underserved communities that need them the most. Such targeting is a key point of many place-based initiatives, yet many of the most appropriate recipients of place-based investment possess limited capacity to package their ideas and navigate the requirements of federal programs. Federal agencies will need to be creative and energetic in providing upfront support for community program applicants and watch that program criteria do not create inadvertent barriers for the worst-off places.

And then there is the need to show results quickly, amid both the current political atmosphere and a legacy of skepticism for place-based policies. Given those factors, it will be important for the federal government and local stakeholders to get success measures from the outset, manage the fact that place-based development takes time (several years at a minimum), and work hard to deliver excellent outcomes and communicate them widely.

With all of that said, the Build Back Better Act as passed by the House must be counted as a major advance for national policy that acknowledges regional and neighborhood decline and seeks to counter it with a new generation of place-based responses.

Addressing regional inequality will absolutely require the kind of universal social programs that compose the bulk of the Build Back Better Act. Such broad welfare programs represent an important revival of the federal government acting as a “pro-active force for uniting disparate regions into one national economy,” as notes the sociologist Robert Manduca. Yet in addition to such universal investment, a true push to ameliorate the nation’s stark geographic divides can and should reinvestigate the power of targeted, place-oriented policies to reverse local distress and catalyze growth. The House version of the Build Back Better Act represents a major watershed for that work. Let’s hope the Senate embraces it too.

Author: mmaydani

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10 busy battery metals explorers with a market cap under $11m

It’s getting harder and harder to find potential bargains in the white-hot battery metal sector. But that’s what we’re here … Read More
The post…

It’s getting harder and harder to find potential bargains in the white-hot battery metal sector.

But that’s what we’re here for.


 

MITRE MINING (ASX:MMC)

Market Cap: $7m

Cash: $4.5m (Sept 30)

Battery Metal Focus: Lithium, Rare Earths

The newly listed stock is focused on lithium, rare earths, gold, and base metals in the mineral rich Lachlan Fold Belt of NSW.

The company is taking a “multi-commodity, multi-deposit style approach to exploration” at the flagship ‘Bateman’ project, MMC chief exec Clinton Carey says, starting with the important — but relatively boring – early stage stuff.

Surveying for lithium/rare earths/everything else is under way, with over 420 portable XRF readings acquired to date. A second portable XRF has been ordered to accelerate the program of work.

While XRF tech is not as reliable as lab assays in reflecting what and how much mineralisation is in a sample, it still gives a solid indicator. It is also quick, unlike assays which can take months to get back from the lab.

Next up: geological mapping, geophysics and then a systematic program of reverse circulation and diamond drilling to test newly discovered anomalies/targets.

 

NICKELX (ASX:NKL)

Market Cap: $7m

Cash: $5.6m (Sept 30)

Battery Metal Focus: Nickel, Copper

NKL listed in May with a swag of nickel and gold prospects in WA.

It hit the ground running with a maiden first pass six-hole, 2400m diamond drilling program designed to test for semi-massive to massive sulphides at the ‘Fire Dragon’ and ‘Silver Dragon’ nickel targets.

Assays are pending, but planning for the next stage of drilling is already underway.

“Once assays are received and downhole Electromagnetic (DHEM) surveys are completed in the December Quarter we will incorporate those results into our geological model for planning of the next stage of drilling,” NickelX managing director Matt Gauci says.

 

 

MOHO RESOURCES (ASX:MOH)

Market Cap: $7.5m

Cash: $1.7m (early Oct)

Battery Metal Focus: Nickel, Lithium

MOH has identified three high-quality nickel targets at the ‘Silver Swan’ project in WA called Omrah, Wise and Dukes.

It intends to conduct RC and diamond drilling at Omrah, RC drilling at Wise, and aircore drilling at the Dukes target, possibly in combination with ground EM surveys.

An RC rig was scheduled to arrive on site in early November, with a diamond rig shortly thereafter.

MOH has also been on the acquisition trail over the past month, first picking up a strategic nickel interest in 20 mining tenements from gold play Yandal Resources (ASX:YRL), and then more ground prospective for nickel-copper-PGEs in a deal with private company Whistlepipe Exploration.

The ‘Peak Charles’ project – part of the Whistlepipe deal – is also prospective for lithium.

 

RESOURCE BASE (ASX:RBX)

Market Cap: $7.9m

Cash: $4.8m (Sept 30)

Battery Metal Focus: Rare Earths, Copper

In late September this newly listed copper-gold explorer joined the rare earths game, acquiring 1,380sqkm of ground in the Murray Basin (Victoria-South Australia border) prospective for ionic clay (IAC) hosted rare earths.

IAC deposits – like the ones exploited in southern China — are commonly considered to be some of the cheapest and most readily accessible sources of heavy rare earths.

The ‘Mitre Hill’ project is either side of Australian Rare Earths’ (ASX:AR3) ‘Red Tail’ and ‘Yellow Tail’ deposits which contain a JORC 2012 Inferred Mineral Resource of 39.9Mt @ 725ppm Total Rare Earth Oxide (TREO).

$42m market cap AR3 is currently up 210% on its June IPO price of 30c per share.

A low-cost exploration and drilling program is being planned to investigate areas prospective for shallow rare earth mineralisation at Mitre Hill, RBX says.

 

GOLDEN MILE RESOURCES (ASX:G88)

Market Cap: $8.2m

Cash: $2m (Sept 30)

Battery Metal Focus: Nickel, Copper

G88 got a nice – but brief – share price kick in March from early-stage drilling at its ‘Benalla’ gold project but follow-up assays failed to impress.

Now the focus seems to be the ‘Yarrambee’ nickel-copper-zinc project, a regionally significant landholding covering prospective portions of the Narndee Igneous Complex (NIC) ~500km northeast of Perth.

With more than 800sqkm under tenure, G88 is the largest landholder across the NIC, prospective for Ni-Cu-PGE mineralisation (e.g. Voisey’s Bay, Nova, Julimar), and volcanogenic massive sulphide (VMS) copper-zinc mineralisation (e.g. Golden Grove, DeGrussa).

In July, a helicopter electromagnetic survey identified 48 conductors interpreted to be related to sulphide accumulations. A subsequent ground EM survey has confirmed high priority targets for drilling.

Golden Mile’s field crew is now on site in preparation for a 2-3,000m reverse circulation (RC) drill program to test these targets later this month.

“Although it’s still early days for Golden Mile at Yarrambee, we continue to be excited by the quality of the targets identified so far and look forward to the drill rig testing these over the coming month,” managing director James Merrillees said on November 8.

 

SABRE RESOURCES (ASX:SBR)

Market Cap: $9.3m

Cash: $4.6m

Battery Metal Focus: Nickel, Copper, Cobalt

Initial drilling results from the Bonanza gold project in March were disappointing, but – like G88 — this WA explorer has other cards to play.

A scoping study (the first proper look at the economics of a project) at the ‘Sherlock Bay’ nickel-copper-cobalt sulphide project in the Pilbara is nearing completion.

The deposit contains ~99,200 tonnes of nickel metal, 21,700 tonnes of copper metal and 5,400 tonnes of cobalt metal “which has the potential to be increased by further drilling”, SBR says.

The resource is increasing in grade with depth, and EM anomalies along strike are inadequately tested. The company will develop these targets for drill testing during the current quarter, it says.

 

FORRESTANIA RESOURCES (ASX:FRS)

Market Cap: $10m

Cash: $4m (Sept 30)

Battery Metal Focus: Lithium, Nickel

Another explorer focused on the methodical, some say unsexy, early-stage exploration work.

The freshly listed stock has uncovered new lithium targets at its namesake project in WA, including one neighbouring the world class Wesfarmers/SQM ‘Mt Holland’ lithium mine called ‘Cohn’.

Cohn, ~6km southeast of Mt Holland, covers a previously defined lithium and caesium soil anomaly that is ~ 14km long. It is one of many walk-up lithium and gold drill targets emerging, FRS says.

“Given the Forrestania Project’s proximity to a world-class lithium mine, a plus one-million-ounce gold camp and several outstanding nickel mines, the exciting challenge for the company’s exploration team was always going to be ‘where to start?’” FRS chief executive officer, Melanie Sutterby says.

“We have been systematically assessing and validating the available historical data and advancing modern techniques across previously unexplored ground at the Forrestania Project.

“We are now looking to this data to recalibrate and level regional datasets as a foundation for lithium, gold, and nickel discoveries.”

 

ARUMA RESOURCES (ASX:AAJ)

Market Cap: $10.2m

Cash: $3.67m (Sept 30)

Battery Metal Focus: Lithium

AJJ has a couple of gold projects (NSW, WA) and a lithium project in WA called ‘Mt Deans’.

The project sits within the lithium corridor in southeast WA, where it is interpreted to sit within the same host rocks and structures as the significant nearby Mt Marion, Bald Hill, and Buldania lithium projects.

The explorer also reckons Mt Deans is “high prospective” for tantalum and rare earth element (REE) minerals.

A 12-hole RC drilling campaign – designed to intersect an interpreted pegmatite chamber or ‘cauldron’ at Mt Deans – will start in the current quarter, AAJ says.

 

CORAZON (ASX:CZN)

Market Cap: $10.2m

Cash: $1.5m

Battery Metal Focus: Nickel, Cobalt

This micro-cap already has a significant 116,800t nickel, 54,300t copper, and 5,300t cobalt resource at the historic ‘Lynn Lake’ project in Canada.

It will probably get bigger. A new phase of exploration drilling is presently underway at Lynn Lake, targeting new DHEM conductors defined at the ‘Fraser Lake Complex’ prospect.

The initial priority target is a significant, large geophysical conductor, similar in size and character to nickel sulphide deposits within the existing Mining Centre, CZN says.

This phase of drilling is expected to be continuous for at least the next two months, with results released as they become available, the company said late October.

 

SIPA RESOURCES (ASX:SRI)

Market Cap: $10.8m

Cash: $4.8m (Sept 30)

Battery Metal Focus: Nickel, Lithium, Copper

The busy explorer is, amongst other things, targeting gold and lithium deposits at the ‘Warralong’ project in the Pilbara.

Two programs of shallow aircore drilling have tested first round targets “and will assist in building a robust geological framework”, SRI says.

Assays awaited from both drill programs, and from an extensive soil sampling campaign recently completed.

 



 
At Stockhead we tell it like it is. While Moho and Corazon are Stockhead advertisers, they did not sponsor this article.

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Author: Reuben Adams

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Energy & Critical Metals

Queensland’s new vanadium plant is just a train hop from CMG’s Lindfield project

Special Report: Critical Minerals Group’s well-positioned Lindfield project has been boosted by Queensland government’s investment in a vanadium processing…

Critical Minerals Group’s well-positioned Lindfield project has been boosted by Queensland government’s investment in a vanadium processing facility.

Lindfield is located in a known vanadium province at Julia Creek, which is also host to QEM’s Julia Creek project and Multicom’s Saint Elmo project that is just entering the mining construction phase.

Besides the added confidence from being close to other vanadium projects, which makes for well understood geology, the location provides the company with easy access to infrastructure including road and rail from the town straight to the port of Townsville.

The area also benefits from overwhelming support from different government departments keen to get projects up and running.

This has now been boosted further by the Queensland government moving to build and own a vanadium processing plant in Townsville as part of a plan to make the state a leading producer and exporter of new-economy minerals and the home of new industries.

Treasurer and Minister for Trade and Investment Cameron Dick said the government wanted regional Queensland “to be a global leader when it comes to everything that’s part of the renewable energy revolution”.

“Through our $520 million Invested in Queensland program, we will put at least $10 million towards this common-user facility, with the final amount depending on the outcome of the construction tender,” he added.

“A common-user facility can be used by multiple, smaller mining companies that do not have the available capital to set up their own processing facilities.”

The Department of Resources will seek tenders in the new year for detailed engineering assessments and costings for the plant.

Construction is expected to start in 2022, with the plant scheduled to begin operating in 2023.

“Critical Minerals Group congratulates the Queensland state government for their innovative and collaborative approach in accelerating the development of new critical minerals industries for Queenslanders,” managing director Scott Drelincourt said.

“Vanadium has a critical role to play in the future of energy storage, with vanadium consumption in batteries (vanadium flow batteries) forecasted to grow at an average compound rate of 20.7% per year from 2020 to 2029.

“The $10m multiuser vanadium processing facility will help fast track advanced vanadium projects like CMG’s Lindfield project, by saving companies the time and funds required to develop its own demonstration plant.

“The facility will have further benefits by being able to produce bulk end user products such as V2O5 or battery electrolyte to be tested by potential off-take partners.”

 

Lindfield’s superiority

While its location is certainly of great value, there are several factors that make Critical Mineral Group’s Lindfield project stand out from other projects in the area.

The project currently has an Inferred JORC resource of 210 million tonnes grading 0.39% vanadium pentoxide (V2O5), which is a higher grade compared to most of the company’s peers.

The resource is also shallow and outcrops at surface, meaning that mining costs are likely to be lower thanks to the low strip ratio.

Cross section highlighting the shallow nature of Lindfield mineralisation. Pic: Supplied

Combined with the access to major infrastructure, the company appears well placed to be a standout vanadium producer.

Historical drill results have also highlighted the potential for high-purity alumina to be produced at Lindfield.

This article was developed in collaboration with Critical Minerals Group, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post Queensland’s new vanadium plant is just a train hop from CMG’s Lindfield project appeared first on Stockhead.




Author: Special Report

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