Armada picks up four early-stage lithium exploration projects in the emerging hard rock hub of Brazil
\nDrill assays imminent from Torque\u2019s Bald Hill-adjacent New Dawn lithium project
\nNewfield (diamonds), Podium (PGMs) respond to promising price outlooks<\/p>\n
Here are the biggest small cap resources winners in early trade, Thursday November 23.<\/p>\n
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Lithium prices continue to fall, down ~75% year-to-date.<\/p>\n
Incredibly this hasn\u2019t dampened company or punter interest in the battery metal, with acquisitions, drill results and fun stories still sparking rerates at the more speculative end of the bourse.<\/p>\n
Today\u2019s big winner in early trade was AMM, which has picked up four early-stage lithium exploration projects for $150k cash and 26m shares in the emerging hard rock hub of Brazil.<\/p>\n
\u201cThis is an exciting transaction for Armada as we diversify both geographically and into lithium, while remaining in the critical metals space,\u201d chairman Rick Anthon says.<\/p>\n
\u201cThis area in Brazil is attracting significant exploration attention for the potential discovery of lithium-bearing pegmatites, with a number of other operators in the region and known occurrences.<\/p>\n
\u201cThis new planned acquisition, along with our nickel projects in Africa, especially the Bend Nickel Project in Zimbabwe where we are currently drilling and results are expected soon, offers exciting new opportunity to Armada and its shareholders.\u201d<\/p>\n
The $10m capped stock has almost recovered its year-to-date losses on today\u2019s news. It had ~$2m in the bank at the end of September.<\/p>\n\n
<\/span>\u00a0<\/p>\n (Up on no news)<\/strong><\/em><\/p>\n It\u2019s been a rollercoaster for TOR, which rerated heavily in September after buying New Dawn,\u00a0an unmined lithium and tantalum occurrence on granted mining leases<\/strong><\/a>, 600m along strike of the established Bald Hill operation.<\/p>\n Hype fizzled following some less-than spectacular initial drill results, but TOR \u2014 believing it has something special at New Dawn \u2013 doubled down with another drill rig.<\/p>\n This was enough to get punters interested again. Subsequent drill hole analysis released early this week indicates there is a lot of spodumene, which glows under UV light:<\/p>\n\n All-important assays are imminent, the company says.<\/p>\n The $27m capped stock is up 20%, year-to-date. It had $3.5m in the bank at the end of September.<\/p>\n\n <\/span>\u00a0<\/p>\n (Up on no news)<\/strong><\/em><\/p>\n The beleaguered Sierra Leone diamond miner is enjoying some respite today after yesterday\u2019s fairly positive AGM presso.<\/p>\n It is ramping up the flagship Tongo mine, which has an 8.3 million carat resource at a grade weighted average of 2.4 carats per tonne.<\/p>\n That\u2019s high grade \u2013 one of the highest in the diamond world, the company says \u2014 equivalent to 9g\/t gold.<\/p>\n NWF is targeting production of 250,000cts per annum by 2027 and 400,000cts per annum by 2029.<\/p>\n Meanwhile the diamond trade is looking rosier in the medium term, as global rough diamond supply decreases alongside increasing demand.<\/p>\n \u201cThis will underpin strength of rough diamond prices in medium and long term,\u201d the company says.<\/p>\n \u201cRough diamond prices [are] forecast to strengthen in 2024 and have robust price inflation beyond due to predicted supply deficit.\u201d<\/p>\n The $130m capped stock has suffered an abysmal run, down ~65% in 2023 amid weaker pricing for rough diamonds<\/a>.<\/p>\n\n <\/span>\u00a0<\/p>\n The minnow bounced 20% in early trade before going into a halt \u201cpending the release of exploration results\u201d at the King Charles rare earths (REE) project.<\/p>\n Peak Charles is an early stage clay-hosted REE project near Esperance, where Lord of the Rings\u2019 inspired prospects like Gimli and Pippin \u201cmay indicate the presence of rare earth-enriched intrusions<\/a>\u201d.<\/p>\n A shallow 43 hole, 1670m drill program along road reserves and existing tracks has been completed, with assays pending.<\/p>\n The $5m capped stock is down 40% year-to-date.<\/p>\n Things were looking desperate with just $10,000 in the bank at the end of September, but the coffers have since been topped up via $470,000 placement and $1.2m entitlement offer.<\/p>\n\n <\/span>\u00a0<\/p>\n (Up on no news)<\/strong><\/em><\/p>\n It\u2019s been a crap year for platinum group metals (PGM), with average basket prices dropping by ~40% for the major PGM producers.<\/p>\n Palladium \u2013 which peaked at US$3000\/oz in March 2022 \u2014 has lost almost half its value since the start of the year, hitting lows of US$936 on the 10th of November.<\/p>\n This decline has made it the worst-performing metal so far this year, which has impacted share prices.<\/p>\n However, like the diamond trade, there are signs of a recovery in 2024.<\/p>\n \u201cPalladium is so historically oversold that it can rally despite the negative macro picture,\u201d says Alex Kuptsikevich,\u00a0FxPro\u00a0senior market analyst.<\/p>\n \u201cThe $1200 area is worth watching on the road to recovery.<\/p>\n \u201cA decisive break above the previous lows would confirm the reversal and quickly send the price to test the US$1400 level. A break above this level would signal that a new bullish trend has begun in palladium, not just a corrective bounce.\u201d<\/p>\n This is cautiously good news for advanced Aussie explorer Podium, which is progressing its 6Moz PGM (plus nickel, copper and cobalt) Parks Reef project in WA.<\/p>\n The $15m capped stock has been hammered in 2023, down ~65%. It had $2.6m in the bank at the end of September.<\/p>\n\n \ufeff<\/span><\/span> The post Resources Top 5: All aboard the lithium Armada!<\/a> appeared first on Stockhead<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"TORQUE METALS (ASX:TOR)<\/a><\/h2>\n
NEWFIELD RESOURCES (ASX:NWF)<\/a><\/h2>\n
MOHO RESOURCES (ASX:MOH)<\/a><\/h2>\n
PODIUM MINERALS (ASX:POD)<\/a><\/h2>\n
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