Resources Top 5: Positive signs that lithium is waking from slumber

News.com.au

7 hours ago

Argosy Minerals has executed a spot sales contract for the sale of 60 tonnes of battery quality lithium carbonate from its Rincon project
Core Lithium is optimistic about a restart of the Finniss project in the NT
Sunrise Energy Metals has received high-grade scandium assays from Syerston project
Your standout small cap resources stocks for Friday, June 27, 2025
Argosy Minerals (ASX:AGY)
Lithium has been trading at cyclical lows for months but leading mining journalist Kristie Batten says positive signs are emerging and analysts are beginning to focus on when the price recovery would start.
In a Stockhead article ' Smart money bets on a lithium turnaround ' she wrote that a global survey of 90 institutional investors by London-based mining industry advisory firm Harbour found that roughly half were looking for upside exposure to the energy transition above anything else from equities in the natural resources space.
Investors were asked which commodities were the most likely to see increased investment, with more than 80% across Australia, Canada, the US, UK and Europe citing gold as their top pick.
While that isn't the least bit surprising, given where the price has gone, what jumped out was an enthusiasm for lithium, the price of which has gone in the opposite direction.
The research found that lithium edged out copper as the second most likely commodity to attract investment in Australia (65%), Canada (59%), US (61%) and UK/Europe (63%).
A report on the lithium sector from Argonaut last week pointed to positive demand drivers, Batten wrote, with electric vehicles being the early driver and battery energy storage systems growing in importance.
Optimism surrounding lithium has resulted in some stocks running hot including bellwether Pilbara Minerals, which hit a two-week high of $1.41.
Argosy Minerals (ASX:AGY) rose 53.9% to a daily high of 2.3c and closed at 1.8c after executing a spot sales contract with a Hong Kong-based chemical company for the sale of 60 tonnes of battery quality >99.5% lithium carbonate from its Rincon project in the 'Lithium Triangle' in Argentina.
Argosy managing director Jerko Zuvela said 'We were pleased to receive such strong interest for the sale of our battery quality lithium carbonate product.
"With our positive project fundamentals, we will be strong beneficiaries of the EV/lithium sector resurgence noting the significant development milestones achieved to date at our Rincon
"We are delighted to be part of an exclusive group of battery quality lithium carbonate product exporters, given the challenges encountered by many of our peers attempting to achieve this feat.'
Core Lithium (ASX:CXO)
A lithium price slump victim has been Core Lithium and its Finniss hard-rock lithium project in the Northern Territory, 88km southwest from the Darwin Port.
Early works at the BP33 deposit were suspended in late 2023, mining at Grants was suspended in January 2024 and processing in mid-2024, with all infrastructure placed on care and maintenance for any potential restart.
A restart study completed in mid-May 2025 has repositioned Finniss as a highly attractive low-cost operation with a 20-year life of lean underground operations.
The study outlines a high confidence production plan with 94% of the first 10 years backed by ore reserves and includes:
Mining costs reduced by 40% to $63–$72/t (from $120/t);
Processing costs cut by 33% to $40–$46/t(from $69/t);
Unit operating costs of $690–$785/t (FOB, SC6 eq ex-royalties), placing Finniss among the most competitive global spodumene operations; and
Concentrate production lifted 7% to ~205ktpa SC6 equivalent.
'The plan we've outlined capitalises on the project's strengths, including established infrastructure, high-grade ore bodies well-suited to low-cost underground mining and a process plant with proven recoveries and further scope for optimisation,' Core Lithium (ASX:CXO) CEO Paul Brown said.
'We've undertaken a rigorous, bottom-up review of every aspect of the operation. The study brings together our operating experience to deliver a plan that is more robust, more efficient and built for the long term.
'At BP33, we are developing a large-scale underground mine. Grants will shift to underground mining, cutting costs and doubling its mine life. Carlton will use Grants' surface infrastructure, supporting a 20 year mine life. Blackbeard offers further potential to extend mine life and expand operations.
'Our plant upgrades will improve recovery and reduce contaminants, whilst keeping capital costs low. These improvements include enhanced screening with more affordable crushing and the addition of a gravity circuit.
'The study outlines a lower-cost, longer-life and scalable operating plan that generates free cash flow of $1.2 billion, representing a six-fold return on pre-production capital.'
A Final Investment Decision for the restart remains subject to board approval and is contingent on market conditions and securing a suitable funding pathway.
Optimism surrounding the Finniss restart and the lithium industry's future has seen shares as much as 18% higher to 10.5c. CXO closed at 9.9c with more than 61 million shares changing hands.
Sunrise Energy Metals (ASX:SRL)
It has been a big week for Sunrise Energy Metals - a $6 million placement finalised, $1.5m share purchase plan launched with strong initial uptake and high-grade scandium assays returned from its flagship Syerston project in Central West NSW.
The assays saw shares increase to a 12-month high of $1.205, a lift of 34.64% on the previous close. From 65c on June 23, SRL has risen 85.4% in five days.
A 125 hole RC drilling campaign totalling 3,589 drill metres in April and May 2025 had the aim of expanding the zones of higher-grade scandium at the Syerston deposit.
More than half of the total 3,574 assays have been received from 49 drill holes, indicating multiple new areas of continuous, high-grade mineralisation.
Significant intersections include:
7m at 884ppm Sc from 1m, including 3m at 1123ppm from 4m;
6m at 788ppm from 4m;
13m at 743ppm from 6m;
5m at 714ppm from 3m; and
7m at 666ppm from 4m.
Once complete and released, all results from the drilling will be incorporated into an update to the Syerston resource estimate, which will underpin a feasibility study update.
'Recent drill results have identified further zones of continuous, high-grade scandium mineralisation within our Sunrise Mining Lease and they remain open in multiple directions,' Sunrise Energy Metals managing director Sam Riggall said
'These zones will form the basis of an initial multi-decade mine plan for our Syerston Scandium Project Feasibility Study, targeting rapid, low-cost development and production options, supported by one of the largest and highest-grade scandium resources in the world.'
Red Mountain Mining (ASX:RMX)
Australia's antimony hotspot is the New England region of northern NSW and one of the juniors looking to start producing the in-demand critical mineral is Red Mountain Mining, which hit a high of 1.5c, a lift of 67% on the previous close, with more than 110m shares changing hands.
The boost came after the company returned high-grade antimony results from rock chip samples at Oaky Creek prospect in the Armidale project.
Results from samples collected up to 500m along strike from historical workings include 28.34%, 28.33% and 16.38% Sb, which suggest potential for a large orogenic antimony mineral system.
Shallow costeaning is planned to expose the bedrock beneath strong soil antimony anomalies with no visible outcrop while RMX also plans to undertake soil and rock chip sampling over the East Hills antimony and Horsley Station gold prospects in the southern portion of the project.
Similar systems, such as Larvotto's (ASX:LRV) Hillgrove deposit, also in the Southern New England Orogen, typically also contain high-grade gold mineralisation.
RMX has submitted a subset of the Oaky Creek rock chip samples for gold analysis by lead fire assay, with results expected in July.
D3 Energy (ASX:D3E)
South Africa is hungry for new energy sources and D3 Energy is taking steps to feed the demand with gas from its ER315 licence at Bloemskraal in the Free State with shares reaching 15c, a lift of 36.36% on the June 26 close, before closing at 14.5c
This followed the company achieving increased flow rates at RBD03 following a well clean out.
RBD03 flowed at an average gas flow rate of 201 Mscfd over the initial 7-day period, which was 35% higher than the previous flow rate measured before the well clean out.
Total gas produced over the initial 7-day testing period was 1,396 Mscf and testing will continue for another seven days before the well will be shut in to analyse the pressure buildup data.
The company undertook a multi-well production testing program at Bloemskraal last year which included RBD03, a gold exploration borehole drilled in 1982.
Analysis of the initial production test in July and August last year showed indications that there may have been some obstructions or debris in the wellbore.
A work over to clean out any obstructions was performed at RBD03 on May 7, 2025, and some issues were encountered with an historical undocumented hole size change curtailing operations.
The well was nonetheless partially cleaned out and shut in to allow the reservoir pressure to build back up prior to retesting.
This flow testing commenced on June 13, 2025, following the build-up period and the 7-day results demonstrate a 35% increase in the stabilised flow rate.