The S&P/ASX 200 Materials Index is down -3.2% in early trade, underperforming the ASX 200.
The market has experienced quite a broad-based selloff after some hawkish comments from the US Federal Reserve. This will likely see a lack of liquidity towards the speculative end of town and potentially difficulty in stocks holding onto morning gains.
Intraday chart of the S&P/ASX 200 Materials Index, with the ASX 200 shown in red
Soil and geochemistry sampling data has uncovered multiple areas of lithium anomalies at the Karonie Project in WA. Alchemy Resources (ASX: ALY) shares spiked 42% in early trade.
“The geochemical review reaffirms the prospectivity of our large tenement package at Karonie in what has historically only ever seen gold and base metals exploration,” said chief executive James Wilson.
4 new high priority lithium targets will be tested over an initial 7km x 1km zone. The tenements sit contiguous of the Manna Lithium Deposit owned by Global Lithium Resources (ASX: GL1).
Commence infill soil sampling and detailed mapping of pegmatite outcrops at the lithium targets
Complete heritage agreements to allow for future drill programs
Rincon Resources (ASX: RCR) has reported the emergence of a new high-priority target at the South Telfer Copper-Gold Project in WA. The company’ stock opened 13% higher as the market opened.
The prospect, known as Kurili Hill, was first drilled by Newcrest Mining (ASX: NCM) in 1997, intersecting significant shallow copper mineralisation.
“With known copper mineralisation open and untested at depth and potentially along strike for up to 2km, this is possibly the most significant new target area unearthed at South Telfer yet,” commented managing director, Gary Harvey.
Reconnaissance mapping and rock-chip sampling along the prospect
Plan follow-up drilling
Plan new geophysical survey programs over Kurili Hill
Navaree Minerals (ASX: NML) reported some “outstanding” gold, silver and copper hits at the Mt Carlton Project in Queensland. The company's stock opened 9% higher.
“The resource definition drilling program has confirmed the continuity, tenor and width of the high-grade gold, silver and copper system of the Mt Carlton United prospect,” said managing director Ian Holland.
Drill results expected to contribute to an updated Mineral Resource and Ore Reserve estimate for Mt Carlton, scheduled for reporting in September
Drill assay results
Vital Metals’ (ASX: VML) offtake partner REEtec has signed a purchase agreement to supply rare earth metals to German auto parts supplier, Schaeffler. Vital shares are up 4.5% in early trade.
According to Vital, the agreement marks an industry first, end-to-end binding agreement from raw material to electric motors.
Vital has already signed a definitive offtake agreement with REEtec in February 2021, which includes 2,000 tonnes of rare earth carbonate, containing 750t of NdPr per annum.
Vital expects to begin producing rare earth carbonate in June 2022.
Essential Metals' (ASX: ESS) shares entered into a trading halt on Thursday after receiving a non-binding indicative takeover offer.
More details are expected to be released next Tuesday, 26 April.
Essential Metals is a WA-oriented lithium, gold and nickel explorer which has experienced a massive re-rate, up 43% in April and up 211% year-to-date.
There hasn't been that much M&A activity in the high-profile lithium sector, at least as far as the ASX is concerned.
It will be interesting to see what kind of premium is offered and who is making the bid to buy out the explorer.
Finance Writer & Social Media
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