Resources Top 5: Positive signs that lithium is waking from slumber
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.
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The Australian
an hour ago
- The Australian
The ASX's best undeveloped mines, according to Argonaut
Argonaut's latest Best Undeveloped Projects list was launched this month Companies listed in the guide have historically done well, with cumulative gains for key picks of 212% over more than a decade Gold, uranium, copper and critical minerals deposits all among the 25-strong list of key picks and special mentions In a world of AI, quants and passive investing, there are smoke signals to be found that active management and stock picking still matters when it comes to choosing outperformers. Look no further than the Best Undeveloped Projects list out of Perth brokers Argonaut, the tome from the Wild West that puts guard rails around which future mines have the best prospects for success. This year's list is now out, presenting 25 projects yet to enter construction that have the potential to become significant mining operations. Of those, 18 make the main list with another seven in the special mentions category. It's impossible to predict the future with perfect accuracy, but recent history suggests the list can be a good guide for value creation. Argonaut has drawn up the list each year since 2014. In that time there have been four down years and seven up years for its key picks, with average growth of 14%. A cumulative investment would have netted 212% for key picks and 94% for special mentions over that period, against just 61% of the ASX 200 and 123% for the small resources index. Last year was a strong one for Argonaut's key picks, notching their third best performance in the past decade with average share prices 38% higher. Special mentions underperformed small resources (10% vs 12%), though that came off a massive 58% run in 2023. The standout performer in 2024's list was New World Resources (ASX:NWC), up 235% after a bidding war resulted in its $243 million cash takeover by Kinterra Capital – the prize its high-grade Antler copper project in Arizona. It would be hard to repeat a success like that, with De Grey Mining also a major mover after its scrip takeover by Northern Star Resources (ASX:NST) to end the speculation over who would eventually get to develop the 11.2Moz Hemi gold project. With that in mind, we felt it was worth a squiz at this year's book to see which projects Argonaut thinks are the real deal this year. The list Before we go onto the list itself, it's worth noting what criteria Argonaut's stock pickers use to determine their top selections, giving a sense of what professional analysts look for when they talk about a standout asset. Geared towards low cost, high margin opportunities, the projects assessed by Argonaut must be development stage, somewhere between a scoping study and pre-commercial production, have an internal rate of return upwards of 25% (large miners typically will develop anything above 15% depending on mine life), profitable through all market conditions and commodity price cycles and highly likely to achieve a project valuation north of $100m within 24 months. To make the list the project owner must also have a valuation of less than $5bn – no boring, index tracking mega caps here. This year's book is a long one. So we'll roll up the key picks here: Argonaut's key picks for best undeveloped projects. Pic: Argonaut Running through the 18 key picks, and you'll be surprised to see gold doesn't totally dominate the ledger – these projects are supposed to work in all commodity cycles after all. Copper gets two nods, courtesy of AIC Mines' (ASX:A1M) Jericho and FireFly Metals' (ASX:FFM) Green Bay. Unloved nickel and resurgent platinum group metals get some love in Centaurus Metals' (ASX:CTM) Jaguar project in Brazil and Chalice Mining's (ASX:CHN) Gonneville in WA. Zinc, rare earths, niobium and rutile all get one mention, with lithium and uranium bagging two a piece. It's not everything, but in a sign of the times, gold assets still make up the largest single portion of the list, with six of the 18 names aiming to develop gold assets. Those include large producers Greatland Resources (ASX:GGP), Perseus Mining (ASX:PRU) and Capricorn Metals (ASX:CMM), who are all looking to build new mines in the coming years at Havieron, near Greatland's Telfer mine, Nyanzaga in Tanzania and Mt Gibson in WA, respectively. But there are small caps on the card also: Magnetic Resources' (ASX:MAU) Lady Julie deposit in WA's Laverton gold district, Predictive Discovery's (ASX:PDI) Bankan in Guinea and WIA Gold's (ASX:WIA) Kokoseb in Cote d'Ivoire are all included, with each shaping as potential M&A targets. "An improved gold market has fuelled increased exploration across the space, resulting in the emergence of new greenfield and near-mine discoveries," Argonaut said. "We include nine gold projects, with five located in Western Australia and the remainder across the Africa region. "We remain firmly committed to our belief that decarbonisation will play an increasingly important role in the global economy. Future facing metals such as lithium, rare earth elements, copper, niobium and uranium are all represented in our project selections." Special mentions include projects that could progress to Argonaut's main list. Pic: Argonaut Three gold stocks feature on the special mentions, including Brightstar Resources (ASX:BTR) and its soon to be wholly consolidated Sandstone project, where the acquisition of neighbour Aurumin (ASX:AUN) would pump up its inventory from 1.5Moz to 2.4Moz gold. Tim Goyder's Minerals 260 (ASX:MI6) and its ripe to be mined Bullabulling mine near Coolgardie also makes the grade along with Diggers and Dealers best emerging company award winner Turaco Gold (ASX:TCG) and its Afema deposit in Cote d'Ivoire. Rare earths and niobium plays Northern Minerals (ASX:NTU) and Encounter Resources (ASX:ENR) are on the bill, with African uranium opportunities Aura Energy (ASX:AEE) and Bannerman Energy (ASX:BMN) cracking a mention. Projects to watch There's a lot to pore over, but we've decided to take a look through some of the key picks and special mentions for a few that piqued our interest. Aura Energy - Tiris Aura Energy's Tiris is among the most advanced uranium assets on the ASX, with first production expected in 2027. The project lies in the West African country of Mauritania, an off the radar locale for ASX investors which nonetheless is home to major mining operations, especially in gold and iron ore. Tiris would be its first uranium mine, with Argonaut's John Scholtz suggesting its 162Mt at 215ppm resource (76.6Mlb) could underpin production of 1.7Mlbpa at all in sustaining costs of US$37.07/lb. "A DFS on the project was completed in 2021 and has subsequently been updated in 2023 and had a FEED study in 2024 highlighting robust economics. AEE is now focused on funding and is expected to do an FID in the near-term. The project is fully licensed," Scholtz said. "Due to current market conditions delaying an FID, AEE's current target for delivering production is early CY27 rather than their initial estimates in the FEED. Using a 50/50 blend of spot prices and Argonaut forecasts the NPV of Tiris is A$585m." That compares very favourably to Aura's current market cap of $138m. Magnetic Resources - Lady Julie Magnetic's Lady Julie North 4 discovery has grown from 200,000oz to 1.94Moz in just two years, with Argonaut's Patrick Streater predicting another update could take the resource there to 2.25Moz. That would add further value to an asset where a feasibility study in July outlined a nine-year mine life producing 114,000ozpa, including 140,000ozpa between years three to eight. Argonaut has modelled a 10.5 year mine life at 110,000ozpa, with pre-production capex of $375m including working capital, with an initial open pit to be supplemented by an underground from the third year of ops. "MAU presents both as an attractive standalone development project, whilst also being a compelling M&A target for existing producers in the region looking for a large high-grade ore feed," Streater said. The attraction for nearby majors is its locale. Magnetic sits within 15km of both Genesis Minerals' (ASX:GMD) Mt Morgans mill and Gold Fields' Granny Smith, both of which have long been regarded as underfed. When deposits outside Lady Julie are included, the broader Laverton project's resource runs up to 2.32Moz, making it one of the largest undeveloped gold bases in the hot WA Goldfields region. "MAU continues to progress the Lady Julie project down a standalone development route with a sufficient mining inventory now built to cover pre-production capital costs," Streater said. "However, the existing processing infrastructure in the region across various producers makes MAU a compelling M&A target, which could instead be acquired as a bolt-on project for a nearby producer. The LJN4 open pit includes a large high-grade ore reserve of 14.3Mt at 1.6g/t for 726koz, which would be an attractive high-grade feed with scale to supplement existing mill ore feeds or displace lower-grade material." Patriot Battery Metals - Shaakichiuwaanaan Is lithium still sufficiently exciting at spodumene prices of under US$1000/t to warrant best project inclusion? Argonaut still sees Ken Brinsden's Patriot as "globally significant" as the largest hard rock lithium deposit in North America, running at 141Mt at 1.39% Li2O. It bolstered the investment case last month by reporting the world's largest pollucite hosted caesium deposit also existed on the site, including a high-grade component of 163,000t at 10.25% Cs2O with lithium and tantalum credits. An exploration target of 146-231Mt at 1-1.5% Li2O means converting drill metres to resources could put the project in league with Pilbara Minerals' Pilgangoora, MinRes and Albemarle's Wodgina and the Greenbushes JV in WA for scale. A feasibility study is due at the end of September. Predictive Discovery - Bankan A DFS recently outlined a 12-year operation producing 250,000ozpa at an all in sustaining cost of just US$1057/oz. Hosting a 2.95Moz reserve, Bankan is one of the largest discoveries made in West Africa in recent years, with the grant of an exploration permit viewed by Argonaut's Patrick Streater as a key catalyst for the project, expected to cost US$463m to bring into production by 2028. While wrangling from Guinea's Government over licences at other projects is potentially throwing some storm clouds over the junta-run jurisdiction, the award of the exploration permit could be a trigger for M&A. That seems the logical outcome for PDI, which has Perseus, Lundin and Zijin all on its register as significant shareholders. "We expect the Lundin Group/Zijin to be the most likely owners. Under PDI's current development timeline, assuming PDI brings Bankan into production, the first gold is targeted for early CY28," Streater said. Brightstar Resources - Sandstone Brightstar is already a small scale gold producer, using toll treatment to deliver between 35-40,000ozpa from a string of gold mines across the Menzies and Laverton gold districts. An expansion there, using its own plant infrastructure, could enhance that to 70,000ozpa later this decade. But Alex Rovira's firm's big opportunity to grow into a 200,000ozpa miner lies in the forgotten Sandstone gold field. Over the past two years, the firm has delivered on a plan to consolidate the district – the fourth pillar of the Murchison province alongside the Ramelius Resources dominated Mt Magnet and Westgold controlled Cue and Meekatharra – via aggressive M&A. The latest gambit is its agreed merger with Aurumin, which will take the total inventory to 2.4Moz. FID is due in 2027 with production to start late in 2028 on present ambitions. 100,000m of drilling is planned this financial year. Argonaut's Hayden Bairstow has a spec buy rating and $1.60 valuation on 40c BTR. The broker's 3Mtpa production scenario for Sandstone carries a $200m capex estimate, with average gold production of 105,000ozpa with costs of $3000/oz for the first five years. A PFS and ore reserve are due in 2026. Sovereign Metals - Kasiya Kasiya hosts the world's largest natural rutile resource of 1.8Bt at 1%, with 1.4% natural graphite a co-product kicker. Natural rutile is the world's cleanest and most desirable source of titanium dioxide feedstock, with supplies expecting to head into decline over the course of this decade. Rio Tinto has already read the tea leaves, picking up a 19.9% equity stake in the company, which is expected to deliver a DFS on the Malawi-based project in Q4 2025. "Rio Tinto (Not Covered/No Rating) holds a 19.9% equity stake in SVM and we anticipate they will ultimately pay a market premium to takeover SVM. The DFS expected in 4QFY25 remains as a key catalyst," Argonaut's George Ross said. Argonaut has a $1.691bn NPV attached to the project, slightly below Sovereign's optimised PFS estimate. The number is pre-tax, with the application of a 15% Malawian resource rent tax still uncertain. The project has already attracted the interest of international offtakers, Ross noted. "The project will produce two critical mineral co-products, rutile and graphite, at a low carbon cost. Kasiya's rutile concentrate is considered a premium product with good particle size and low deleterious elements," he said. "Because of its quality, Kasiya's rutile is suitable for use as both a titania feedstock and in the high value welding sector. SVM has entered into non-binding MOUs with three major rutile market participants: Mitsui, Chemours and Hascor." At Stockhead, we tell it like it is. While Sovereign Metals, Brightstar Resources, Aura Energy and Magnetic Resources are Stockhead advertisers, they did not sponsor this article. The broker's opinions are not those of Stockhead.
News.com.au
7 hours ago
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How rate cut could impact Melb house prices in coming weeks
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News.com.au
8 hours ago
- News.com.au
Deputy Opposition Leader Dheran Young officially opens new Mandorah Marine Facilities
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