Our Latest Investment: Resolution Minerals (ASX: RML)

Disclosure: S3 Consortium Pty Ltd (the Company) and Associated Entities own 23,076,922 RML shares and 24,038,460 RML Options at the time of publishing this article. 4,295,863 shares and 14,647,931 options disclosed are subject to approval. The Company has been engaged by RML to share our commentary on the progress of our Investment in RML over time.

NOTE: We originally communicated that we would announce this new Portfolio addition yesterday. Due to relisting delays not in our control we are instead announcing it now, ~10am AEST Wednesday 11th June 2025.

It looks like a bull market for ASX small cap stocks could finally be back.

Over the last couple of months we have seen a few small stocks running hard and fast.

A number of these ASX stocks have US based critical metals projects.

We are seeing new heightened investor interest in these companies with big buying of small cap names - some have gone up thousands of percent.

The US has expressed an urgent need to onshore its critical metals production.

China dominates the world’s production of various critical metals and resources, and has even started banning exports of these metals to the US.

The US isn't happy about this - and is spending billions of dollars right now catching up.

With Trump signing Executive Orders to encourage domestic critical metals production, fast tracking strategic mine permitting, and the US government supplying big funding deals to the right projects, it's no wonder that private interest and capital has followed.

We’ve been watching small ASX stocks with US based critical metals projects run (more on these in a second), and been waiting for the right opportunity to further increase our exposure to this thematic

Our new Investment ticks the boxes on these themes.

Today we are adding Resolution Minerals (ASX:RML) to our Portfolio.

RML is acquiring an antimony, gold, silver and tungsten project in Idaho, USA.

The project has drill ready targets, historical antimony and tungsten production and successful gold exploration - gold hits from surface that were never assayed for antimony...

RML’s project is directly next door to the biggest antimony project in the USA: $2BN Perpetua Resources.

... Our new Investment, RML will be the only ASX listed company with:

• Ground directly next to $2BN Perpetua
• On similar geology
• With historical production of antimony, gold and tungsten
• Drill ready antimony and gold targets
• 6,000m of drilling starting in the coming months

The past performance is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

Note: RML’s new project acquisition is still subject to shareholder approval at an upcoming shareholder meeting.

20 days ago Perpetua was given strategic fast track permitting (and previously, funding) by the US federal government for its gold-antimony project - specifically for the strategic importance of its antimony:

(Source)

...and once Perpetua’s gold-antimony mine comes online, it will be the only domestically mined source of antimony in the US.

(Remember the $16M capped RML’s antimony, gold, silver and tungsten project is next door to the $2BN Perpetua - and RML’s ground has already had historical antimony and tungsten mining in the past)

Antimony is a critical military metal used for various defence applications like missiles, tanks and ammunition.

(Source: RML investor deck)

90% of global antimony supply is controlled by China, Russia and Tajikistan.

The US currently has ZERO local antimony production... yet has the world's biggest military.

6 months ago China slapped export controls on antimony and the antimony price has responded - hitting new record prices every month since.

Critical military metal tungsten is in a similar situation.

Tungsten is used for armour plating, artillery, ammunition, and high tech weapons.

(Source: RML investor deck)

Most tungsten mining and processing occurs in China, followed by Vietnam, Russia, North Korea, Bolivia, and Spain.

With all this recent global uncertainty, precious metals are running too - gold is at a record high and silver has broken out to new 13 year highs again overnight.

(Antimony is usually a by-product of mining gold or silver... and as gold and silver bulls, that sounds pretty good to us).

Perpetua’s proposed gold-antimony mine will be enough to satisfy roughly ~35% of US domestic demand during its first six years of production.

The other 65% will need to be found somewhere else...

(nearby perhaps?)

Remember, RML’s new project directly next door has produced antimony and tungsten in the past...

There’s been shallow historical drilling, demonstrating gold mineralisation from surface - that was not assayed for antimony at the time.

And RML already has multiple drill ready targets and says they will be tested with 6,000m of drilling in the coming months.

(Sources: RML investor deck)

Perpetua’s project (once in production) will be the only antimony producer in the USA.

(not to mention 450,000 ounces of gold per year from a 6 million ounce gold resource - remember the critical metal antimony is a by-product of gold production)

RML’s project is next door to Perpetua Resources and could be sitting on the same geology that hosts Perpetua’s 6M ounce gold, 8M ounce silver and 200M+ pound antimony resource...

(More on that geological theory later).

You can read the full RML project acquisition announcement here and the RML investor presentation deck here.

Earlier on we wrote about Trump’s push to fast track USA critical and defence metals projects, that has seen ASX listed companies with US based critical metals projects attract a lot of attention:

Over the last 8 weeks:

• Dateline Resources has run over 5,000%
• Trigg Minerals which has run up over 300%
• Locksley Resources has run nearly 600%

The past performance is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

Today we will publish our RML Investment Memo, which runs through:

• What does RML do?
• The macro theme for RML
• Our RML Big Bet
• What we want to see RML achieve
• Why we are Invested in RML
• The key risks to our Investment Thesis
• Our Investment Plan

US based critical metals stocks are running - is RML next?

USA critical metals (and USA mining in general) might just be the hottest sector in the small cap ASX market right now.

The USA suddenly wants these onshore critical metals projects to happen, and quickly.

US government narratives, executive orders, permit fast tracking, removal of barriers to build mines and most importantly government funding are all happening.

So of course the capital markets will do their thing and private money will flow into these projects to start making them happen.

(meaning ASX stocks with US based critical metals stocks are where attention and capital has now started flowing to)

In March, Trump signed an Executive Order to boost domestic mineral production:

(Source)

Then just last week it was reported that Trump would remove more barriers to get critical minerals projects off the ground:

(Source)

It looks like Trump is trying to cut as much of the permitting red tape as possible and promote capital inflows into US-based critical minerals projects...

Whether it's critical minerals, gold, or more defence metals like antimony and tungsten...

RML’s neighbor Perpetua has been one of the major benefactors receiving accelerated federal permit approvals for its project only a few weeks ago:

(Source)

All of these moves by Trump in the first few months of 2025 have definitely been picked up by the markets....

Including ASX listed stocks with US critical mineral projects.

Over the last 30 days, small ASX stocks with US based critical metals projects have been attracting attention and capital.

Off the back of a Trump mention, Dateline Resources has moved up more than 5,000%:

The past performance is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

Trigg Minerals has tripled in value in just a few weeks on a US antimony acquisition.

The past performance is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

And Locksley Resources is up by more than 600% simply because its project is ~1.4km away from the USA’s biggest rare earth mine (~$6.5BN MP materials):

The past performance is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

Our new Investment RML will have an asset next door to the biggest antimony project in the USA...

US based gold and critical/defence minerals is one of our (and the market’s) favourite macro thematics at the moment - and is a big reason why we are Investing in RML.

This apparent US based critical military metal bull run is relatively new - really only kicking off in the last 2 months or so.

Chasing strong macro themes only works in the longer term IF the company's project is genuine and has a chance to stack up economically - which can only be proven by drilling and economic studies.

(Think about how many lithium stocks emerged from the 2 year lithium bull market of 2020 and 2021 - only the best ones are still around today)

With that in mind, we note again here that RML has already historically PRODUCED antimony (also tungsten) - so this is not just greenfield exploration next door to some bigger company.

The project has past production and historical mining from 1926 to 1958 for antimony, tungsten between 1970s and 1985 and gold exploration using modern techniques from 2020 to now.

Antimony prices are up over 400% in 12 months and tungsten prices look like they want to go on a run too...

We also like precious metals - because, again, they do really well against a backdrop of instability.

Gold is near its all time high right now and silver just broke out to new 13 year highs.

RML’s project has exposure to all four of these metals - antimony, tungsten, gold and silver.

RML’s neighbour Perpetua is up over ~1,000% in the last ~24 months - aiming to become USA’s first onshore source of antimony

The US has shown its hand on how desperately it needs its own antimony supply.

Right now, about 85% of supply comes from China, Russia and Tajikistan.

The US has no domestic source of antimony and is completely import dependent - which explains why the US government have been so active trying to get RML’s neighbour’s antimony (and gold) project up and running as soon as possible:

• (December 2022) - US$24.8M in funding from the Department of Defence.
• (February 2024) - US$34.6M in 2024 under the Defence Production Act.
• (April 2024) - US$1.8BN letter of interest for a loan from the US Export-Import bank
• (May 2025) - Recognition as one of the first 10 minerals projects critical to the US’s national interest (in the FAST-41 program).
• (May 2025) - Final federal permit permit before construction can begin (this last one took ~8 years to land)

These funding/permitting announcements were the major catalysts that made Perpetua the 10 bagger it is today..

In mid 2023, Perpetua’s share price was ~CAD$2.30, then in early 2024 its share price started running (off the back of that US$1.8BN letter of intent from the Department of Defence).

Now it trades with a market cap close to ~$2BN and its share price is up by over 1,000% from its 2023 lows.

(of course past performance of Perpetua is not an indicator of future performance of RML)

Now Perpetua is taking its project into production... once online it will be the only source of domestic antimony in the US...

The past performance is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

RML’s exploration model is based on Perpetua's project

RML is not just a “nearology” story based on ground location alone.

A big part of the reasoning why the US government was all over Perpetua’s asset was for its history as an old antimony mine.

RML’s asset also has a history of antimony production dating back to the early 1920s.

RML has two key prospects:

1. Golden Gate - where tungsten was produced in the 1950’s and 1980’s.

This prospect has more drilling done on it and has previously hit 152m of gold with grades of ~0.94g/t FROM SURFACE.

None of those old holes were assayed for antimony OR tungsten... RML will be drilling this prospectfirst targeting a ~3.5km strike zone.

2. Antimony Ridge - where antimony was produced in the 1920s.

This is where RML has a ~1.2km strike zone which hosts known gold, antimony, silver and tungsten.

Rock chip samples from this part of RML’s project have returned grades as high as 5.99g/t gold, 367g/t silver and 19.15% antimony.

RML’s overarching theory is that its project could sit on top of similar geology to Perpetua Resource’s project.

RML’s whole exploration model is built on chasing an Intrusion Related Gold System where a giant regional source structure is pushing out Perpetua’s resource to the east and RML’s targets to the west:

The dream scenario for RML would be a discovery similar to (or even half of) Perpetua’s Stibnite Project which hosts over 6M ounces of gold and 200M lbs of antimony.

Our base case expectation with RML isn't to see it replicate Perpetua’s project. A discovery even 1/10th its size would be a very good outcome for us.

That is why, today, we are adding Resolution Minerals (ASX:RML) to our Portfolio.

In the next six months, we are hoping to see:

1. RML drill its Golden Gate project - RML’s plan is to run a 6,000m drill program here. We are hoping to see those gold hits replicated (from surface) and for the first time, see those holes get assayed for antimony and tungsten...
2. RML map and sample Antimony Ridge - RML is planning geochemical work on this project. Here we are hoping to see those high grade gold-silver-antimony rock chips get replicated and a bigger target area defined ahead of drilling.
3. Permitting for a much bigger drill program - this one we wouldn't normally put too much focus on BUT this is where we think RML could pull out a surprise announcement.

Those permitting approvals could also come with government funding to help fund drilling.

Government funding would be a complete unexpected surprise to the market and could trigger a re-rate in the company’s share price...

Ultimately we are Invested in RML to see it achieve our Big Bet which is as follows:

Our RML Big Bet:

“RML to re-rate to $200M market cap on the back of strong drill results and maiden resource, plus continued interest and capital flows into the USA critical metals thematic”

NOTE: our “Big Bet” is what we HOPE the ultimate success scenario looks like for this particular Investment over the medium term (2+ years). There is a lot of work to be done, many risks involved - just some of which we list in our RML Investment Memo. Success will require a significant amount of luck. There is no guarantee that our Big Bet will ever come true.

To achieve this 10x plus return from the 1.3c placement price, we will need the USA critical metals theme to keep running strong AND for some drilling luck in RML’s upcoming drill program.

Let’s take a quick cold shower for a second...

Like any small cap ASX stock aiming for a high reward outcome, there are plenty of risks.

One thing that RML will need to overcome is that post project acquisition and the associated capital raise at 1.3c with half an option, the capital structure is pretty bloated, with 1.2 billion shares on issue and 800 million 1.8c options.

This can be the catch 22 when chasing new projects while a macro theme is quickly heating up.

To get a new project dealt into a listed vehicle quickly, often the cap structure gets bloated out (more on this in our risks section) - it's the price of moving a deal through quickly.

We are betting that the quality of the project, growing and continued strength of the USA critical and precious metals macro theme and some drilling luck can overcome the bloated cap structure and options overhang.

We are also backing in the incoming management team who have very specific experience operating in Idaho as well as with taking early stage projects into the feasibility/development stages:

(Source: RML investor deck)

We all know macro themes come and go, so if the market suddenly loses interest in USA critical metals, RML will have ended up overpaying for the project.

So the bet here really is on whether the USA critical and military metals theme has a long way to run... long enough for RML to materially progress their project.

We also note that new project listings into hot macro themes can attract a lot of day traders and big volumes and share price swings (up and down) which may or may not happen here - so exercise caution.

(again, see our risks section at the end of this document)

Before we get to our Investment Memo, here is a detailed overview of the 10 reasons why we are Investing in RML.

10 Reasons why we are Invested in RML

1. USA-based Gold, Antimony, Tungsten and Silver project - Strong macro theme

RML has exposure to three of our current favourite macro themes.

Critical/defence minerals (antimony and tungsten), precious metals (gold and silver) and USA based resource projects.

RML’s project has a non-JORC historical gold resource of ~286k ounces.

2. RML’s project was historically mined for antimony & tungsten

RML’s project produced Antimony in the early 1920s and Tungsten between 1971 and 1985.

The project has been drilled several times over the last few decades but none of the modern exploration assayed for antimony or tungsten.

Rock chip sampling on site is showing RML’s project could host gold-silver-antimony and tungsten mineralisation.

3. RML is next door to the largest antimony project in North America owned by A$2BN Perpetua Resources

Perpetua has received almost $2BN in funding support from the US government and is building a high grade, low cost gold mine which will also be the biggest producer of antimony in the USA.

Perpetua’s project will be the only source of antimony production in the USA and will be producing over 450k ounces of gold per annum.

Perpetua is up by over 1,000% over the last 24 months and RML is right next door.

The past performance is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

4. RML’s project could have the same geology as Perpetua Resources

RML’s exploration theory is based around its project being part of an "Intrusion Related Gold System” (sometimes referred to as an IRGS).

RML’s theory is that whatever source structure generated Perpetua’s resource, could also be pushing out mineralisation into RML’s ground.

Here is how that theory looks in a visual:

5. US based critical metals projects attracting attention and capital on the ASX

Over the last 8 weeks, Dateline Resources (DTR) has run by over 5,000%, Trigg Minerals has run by ~300%, and Locksley Resources (LKY) is up more than 600%.

Concerns over Chinese export bans and the Trump administration loosening permitting handbrakes have meant ASX investors are more willing to buy into US based critical minerals projects.

The market is currently rewarding US based critical metals projects - RML could also attract this capital inflow to fund progress at its project.

6. Critical military metals antimony and tungsten are both at record high prices

Right now, about 85% of antimony supply comes from China, Russia and Tajikistan.

China is the biggest supplier at ~55% of global supply... and ~6 months ago it threatened export controls on antimony supply which sparked a rally to new all time highs.

China also dominates ~80% of the global tungsten market and perceived supply risk has taken tungsten prices to 12 year highs.

7. Precious metals Gold at record high, silver price breakout last 72 hours

Gold is currently trading near all time highs and is up ~100% over the last 12 months.

Silver is also breaking out above 14 year highs AND it looks like it wants to run to new all time highs.

8. Drill permits already granted for a 57 hole drill program

RML already has drilling permits granted and can start drilling straight away.

Drill permits in the US can take months to get and can mean investor attention starts to move away from a company because of the long lead times.

RML wont have any of this and can start drilling immediately.

9. Potential to fast-track project development with favourable US government policy

There are a number of Executive Orders that Trump has released since being in office that have encouraged domestic production of critical minerals.

Including, the Immediate Measures to Increase American Mineral Production, and nominating a number of projects for the FAST-41 program.

This program improves the timeliness and transparency of federal environmental reviews for infrastructure projects.

Although RML’s project is still at the exploration stage, if the company can define a meaningful resource, then larger investors who are interested in building a mine will know that there is an expedited pathway through to development.

10. Potential to obtain non-dilutive U.S. Government funding

Next door neighbour Perpetua Resources has received commitments from the US government for almost US$2BN to get its projects online.

We think there is a chance RML receives US government support for its project.

We looked at the buyout terms the vendors paid to the previous owners of this project and saw that there was a milestone payment tied to government funding support >US$5M. Clearly this was something the old owners thought was possible...

(Source)

OK now those were the reasons for our Investment, and here’s our Investment Memo, which runs through:

• What does RML do?
• The macro theme for RML
• Our RML Big Bet
• What we want to see RML achieve
• Why we are Invested in RML
• The key risks to our Investment Thesis
• Our Investment Plan

Investment Memo: Resolution Minerals Ltd

Memo Opened: 10th June 2025

Shares Held: 23,076,922

Options Held: 24,038,460

What does RML do?

RML is acquiring the Horse Heaven gold-antimony-tungsten project in Idaho USA.

The project is directly next door to the ~$2BN capped Perpetua Resources, which has been supported by the US Department of Defence for its antimony potential.

RML will be drilling to define its own gold-antimony-tungsten resource.

What is the macro theme behind RML?

Critical defence metals and precious metals in the USA.

With Trump signing Executive Orders to encourage US domestic critical metals production, fast tracking strategic mine permitting, and the US government supplying big funding deals to the right projects, private interest and capital has followed.

Antimony is a critical military metal used for various defence applications like missiles, tanks and ammunition.

Tungsten is used for armour plating, artillery, ammunition, and high tech weapons.

Precious metals gold and silver rise in times of global uncertainty.

And US based projects are attracting attention and capital.

RML ticks the boxes on the above themes.

Big Bet

“RML to re-rate to $200M market cap on the back of strong drill results and maiden resource, plus continued interest and capital flows into the USA critical metals thematic”

NOTE: our “Big Bet” is what we HOPE the ultimate success scenario looks like for this particular Investment over the medium term (2+ years). There is a lot of work to be done, many risks involved - just some of which we list in our RML Investment Memo. Success will require a significant amount of luck. There is no guarantee that our Big Bet will ever come true.

The 10 Reasons We Invested in RML

1. USA-based Gold, Antimony, Tungsten and Silver project - Strong macro theme
2. RML’s project was historically mined for antimony & tungsten
3. RML is next door to the largest antimony project in North America owned by A$2BN Perpetua Resources
4. RML’s project could have the same geology as Perpetua Resources
5. US based critical metals projects attracting attention and capital on the ASX
6. Critical military metals antimony and tungsten are both at record high prices
7. Precious metals Gold at record high, silver price breakout last 72 hours
8. Drill permits already granted for a 57 hole drill program
9. Potential to fast-track project development with favourable US government policy
10. Potential to obtain non-dilutive U.S. Government funding

What do we want to see RML do next?

Objective 1: Drilling at Golden Gate

We want to see RML drill its Golden Gate prospect targeting gold-silver and tungsten. IF the drilling also hits antimony that will be an added bonus.

Milestones:

🔲 Drill rig mobilisation

🔲 Drilling starts

🔲 Assay results

Objective 2: Target generation at Antimony Ridge

We want to see RML define drill targets at its Antimony Ridge prospect

Milestones:

🔲 Soil Sampling
🔲 Modeling of existing 3D data
🔲 Identify drill tagets
🔲 Permit for further drilling

Objective 3: Maiden Gold-Antimony-Tungsten Resource

RML’s project has been mined historically for tungsten and antimony BUT none of those minerals were assayed for in any of the modern drilling. We want to see RML discover and define a gold-antimony and tungsten resource.

Milestones:

🔲 Publish maiden resource

Objective 4 (Bonus): US government funding

This would be an added bonus for us. We would like to see RML land some US government funding for the deal.

Milestones:

🔲 US funding deal

What are the risks?

Capital Structure Risk

After RML completes its current capital raise and acquisition it will have ~1.2BN shares on issue and over 800M options exercisable at 1.8c per share.

There is a chance the outstanding options act as a weight on RML’s share prices in the short-medium term.

IF RML’s share price goes above 1.8c then the market may start to price in dilution and more supply coming onto market (through option exercises) which in turn may cause some selling in anticipation of those options coming to market.

Exploration risk

There is no guarantee that RML’s upcoming drill programs are successful. RML may fail to find economic deposits of gold, antimony or tungsten.

Funding risk/dilution risk

As a pre-revenue small cap company, RML is reliant on capital markets to advance its projects.

If something negative happens at a macro or company level, RML could struggle to access capital on favourable terms.

These capital raises may take place at a discount, and result in the issuance of new shares which incur dilution to existing shareholders.

Commodity price risk

The performance of commodity stocks are often closely linked to the value of the underlying commodities they are seeking to extract. Should gold (or antimony) prices fall, this could hurt the RML share price.

Market risk

Broader market sentiment could deteriorate, and shares as an investment class trade lower, taking RML’s share price with it. Alternatively, there could be further sector specific pain ahead where junior explorers suffer a lot more than the broader market.

What is our Investment Strategy?

We are Invested in RML to make a discovery and define a gold-antimony-tungsten resource.

Our plan is to hold the majority of our position in RML for 1 year as part of our Catalyst Hunter exploration portfolio, which we hope is enough time to see RML drill out its project, make a discovery and release a maiden JORC resource.

We may look to sell up to 20% of our holding if the company delivers on one or more of our Investment Memo objectives and/or the share price materially re-rates in line with our minimum hold conditions.