Sunday Edition: 28th September

Disclosure: S3 Consortium Pty Ltd and its associated entities may hold direct or indirect interests in securities referred to in this publication and may receive fees or other forms of consideration from entities mentioned. These interests and arrangements may create a potential conflict of interest in the preparation of this material.

The information contained in this communication is provided for general information purposes only and may relate to speculative investments. It does not constitute financial product advice, and has been prepared without taking into account your personal objectives, financial situation or needs. You should consider obtaining independent financial advice before making any investment decision.

Below you can read about every stock we wrote about this week...

But first - the silver price went nuts after the ASX market closed on Friday.

Silver traded above US$46 per ounce while we were all sleeping on Friday night and early Saturday morning...

Which means silver stocks on the ASX haven’t yet had a chance to react to this sharp price movement... yet.

So Monday should be interesting for SS1, MTH, WCE, AVM and RCM.

Along with silver (and gold), our other big bet in the medium term is on US Critical Minerals.

Antimony is taking the limelight from rare earths this week with the USA’s only antimony smelter winning a $245M government contract.

(Source - Read the full article here)

The article says:

President Donald Trump has taken a series of executive and policy actions aimed at securing U.S. access to critical minerals, citing national security and economic independence.

Antimony — used in munitions, batteries, flame retardants, and military-grade compounds — has been flagged by defense officials as a vulnerability in the U.S. industrial base.

US$245M is a lot of money - we understand that US Antimony Corp owns the only active antimony smelter in the US but imports its antimony ore from overseas.

So there is no end-to-end “Made in America” antimony...yet.

And the US Department of War is becoming very serious about securing domestic antimony supply.

Incredible news for our US based antimony investments - all of which have antimony projects INSIDE US borders:

• LKY - Right next door to $20BN capped MP Materials. LKY will soon be drilling for antimony at the historic Desert Antimony mine which was active during the 1930s. LKY is also developing an antimony processing technology with the goal to get the first American Made, American Processed antimony.
• RML - Drilling now, right next door to $3BN capped Perpetua Resources. The Perpetua Resources Stibnite project produced 90% of America’s antimony during WW1 and WW2, and is the largest historic antimony mine in America.
• SS1 - The largest pre-production silver project on the ASX with a 480Moz silver JORC resource estimate. Almost every single one of SS1’s drill hits have identified antimony. SS1 is undertaking a large-scale reprocessing program of a selection of old drill cores to define an antimony resource in Nevada.

Watch the below video interview with the CEO of US Antimony Corp (the company that just got the $245M from the US DoD/W for antimony supply) from 1 month ago...

Looks like a lot of what he predicted is coming true based on this recent US$245M deal with the Department of War.

And hopefully some of this capital and attention starts flowing towards our US antimony Investments SS1, LKY and RML.

(we watched this interview about 5 times when it first came out - highly recommend the 12 minute time investment to watch it)

Watch the video

So US critical metals just keep on going...

Antimony is suddenly in the spotlight.

Silver could keep its record run going on Monday.

(SS1 has both silver AND antimony... AND its in the USA)

For more silver musings - Read our Saturday note here.

For a summary of everything else we wrote about, read and watched this past week... read on.

Stocks covered this week: IIQ, RML, LKY, EXR, AVM, GEN, WCE, L1M, EMD, HAR, CAY, CND, SGQ, PUR

IIQ released results showing a reduction of more than ~90% in cancer cells within 10 hours of treatment from test tube studies done in combination with Peter MacCallum Cancer Centre.

IIQ’s exosome-based treatment is aimed at an aggressive breast cancer (Triple Negative Breast Cancer) and showed this 90% reduction within just 10 hours of treatment from ‘in-vitro’ (in test tube) studies.

These results are positive, but still at a very early stage. We will get a better idea of the potential for exosome-based cancer therapy with results from IIQ’s animal trial next quarter.

IIQ also announced that it has exercised its option to lock in worldwide rights to biomarkers for the early detection of ovarian cancer.

This de-risks IIQ’s IP position after clinical studies that showed 100% sensitivity and 99.6% specificity for early-stage detection of ovarian cancer.

RML secured permits to extend its current drilling program at Horse Heaven and commenced a stream sediment sampling program, and pegged a further 600 acres of ground.

Extending the drilling program is a good outcome for RML given that its project is located in a National Forest - RML now has another month and a further 10-12 more holes that it can drill to provide newsflow and understanding of its project.

The stream sediment sampling program as well should be interesting, and provide an insight into the theory that there is a deep intrusion responsible for both RML’s mineralisation and the 6Moz gold deposit owned by $3B capped Perpetua Resources next door.

Following the recent $25M cap raise RML has a strong cash runway for the coming months of exploration.

LKY has bolstered its management team with the appointment of a new CEO and COO.

LKY’s dream team is starting to take shape with Kerrie Matthews as CEO and Danny George as COO joining.

LKY has hired two project executors, with Matthews previously a project director on Illuka Resources’ Rare Earths refinery and George specialising in project feasibility working for clients such as BHP and Vale.

These two hires show a clear direction from LKY that this next phase is all about project ‘execution’ - aiming to become the first American made, American processed antimony supplier.

EXR’s gas exploration neighbour in the Taroom Trough in Queensland, Omega Energy, raised $46M in an oversubscribed placement.

This is a big raise, and validation of EXR’s position exploring for natural gas in the Taroom Trough.

Omega will use the funds to drill three vertical wells and potentially another horizontal well - any gas found and flowed should be good news for the entire basin (and by extension good for EXR).

Omega also mentioned some of the cash would go into “growth opportunities”... M&A activity in the region might be interesting. EXR has the largest land position in the Taroom Trough.

AVM provided sampling results that may have uncovered an undiscovered area of high grade silver mineralisation at its Yoquivo asset in Mexico, where AVM has a 17.2Moz silver equivalent foreign resource estimate.

The sampling results were from a previously unmapped area which included a grade of 1,594g/t AgEq. The area is over 1km away from the nearest drillhole so potentially opens up further exploration opportunities.

With this area being unmapped and showing signs of historical workings, we look forward to further exploration work commencing here and in other unmapped areas of the project.

GEN gave an update showing an expected reduction in CAPEX for its iron ore project in Gabon.

But more interesting to us is that GEN’s collaborative partner PowerChina “has introduced potential Chinese funding” considered under a broader funding plan for GEN’s iron ore project.

GEN has done everything to get its project through to Final Investment Decision, now it is about putting the construction funding pieces together.

WCE confirmed the details for the phase 2 silver drilling program that’s expected to begin in 4-6 weeks.

WCE's next drilling program is less than two months away and it will be testing the near-surface silver targets (this is important to see if it has a starter pit potential to reach the deeper high grade silver) AND step-out targets as well (to test the prospectivity of the region).

These step out targets are particularly of interest to us because if WCE is able to identify more high-grade silver amongst one of its 12+ regional targets, it could unlock the entire district.

L1M announced drilling results from one of its Brazilian lithium projects.

The results included multiple thick, high-grade lithium pegmatite intercepts, confirming the potential scale of the project. However, unfortunately low lithium grades were encountered.

Given lithium is out of favour, L1M has moved into precious metals, and is currently drilling gold and silver targets in Queensland - we are looking forward to seeing what L1M can deliver here.

Locksley Resources (ASX:LKY)

USA sourced, USA made and USA processed antimony is the name of the game...

And LKY is seeking to become the first to do it.

Antimony is a critical mineral used by the defence industry, and there are no domestic sources of antimony within the USA... yet.

The US “Department of War” invested heavily into the $2.5BN capped Perpetua Resources Stibine project in Idaho for its antimony, but that mine won’t come online at least until 2029.

While Perpetua is building a large scale operation, LKY wants to be first to market with a smaller scale operation.

China banned antimony exports in September last year (the US gets 65% of its antimony from China), and so the US is scrambling for more supply... quickly.

We recently went to visit LKY’s site with a group of analysts and investors...

LKY’s project is right next door to another ‘US champion’ of critical minerals - the only rare earths mine in America owned by the $20BN capped MP Materials:

Read more: What we saw at LKY’s antimony and rare earths projects right next door to $20B MP Materials

Emyria (ASX:EMD)

Health insurance companies have a big problem.

In 2019, payouts for mental health in Australia were $1.2 billion...

Last year they were $2.2 billion...

Mental health is Australia’s leading chronic health concern.

The system is unsustainable - current interventions are not working and premiums are going up.

So insurers are turning to psychedelic therapies... because frankly, nothing else is really working.

Emyria (ASX:EMD) is the first (and only) company in Australia that offers this in a clinical setting.

And this week Medibank expanded its coverage of EMD treatments to include “treatment resistant depression”.

(Source)

This is very strong validation of EMD’s work to deliver psychedelic care and address mental health challenges in Australia.

A few months ago Medibank announced that it would cover eligible members for EMD’s MDMA-assisted therapy for PTSD.

Now Medibank is covering eligible members for EMD’s psilocybin-assisted therapy for treatment resistant depression.

Almost doubling EMD’s total addressable market in one go.

Read more: Medibank doubles down on partnership with EMD to include psilocybin for treatment resistant depression

Haranga Resources (ASX:HAR)

We were at the Beaver Creek Precious Metals Summit in the US a few weeks ago and the overwhelming consensus was that big funds are now finally willing to put capital to work in small caps.

So it’s a very strong backdrop for the $30M capped Haranga Resources (ASX:HAR) to drill two gold projects all inside the next 6 weeks.

HAR owns a fully permitted gold project in California, USA, with over $90M in mine infrastructure built by the project’s previous owners.

The project already has an estimated 286,000 oz non-JORC gold resource at 9.28g/t.

... and data from 2008 showing it might be up to ~682,000 ounces.

(HAR’s project also has a fully built and PERMITTED 350,000tpa gold processing plant)

HAR acquired its US gold project back in March, AND will be drilling it in the coming weeks with the gold price already up another US$800 per ounce...

Read more: $30M capped HAR - Gold drilling in the USA in weeks with permitted processing plant in place - and what’s with these African gold results?

Canyon Resources (ASX:CAY)

Our 2025 Wise Owl Pick of the Year Canyon Resources (ASX:CAY) raised $215M this week.

And is now fully funded to bring the highest grade undeveloped bauxite project in the world into production...

Yep - actually build a mine.

...and start selling the product for checks dictionary - “revenue”?

A rare achievement in the “raise and spend” world of small cap resource investing.

CAY’s project has >1BT JORC resource estimate in Cameroon, Africa, and is one of those projects where the resource is big enough for production to run for 50+ years.

It’s what the big miners like to call ‘Tier 1’ assets (that name gets thrown around a lot, but we think CAY’s asset definitely fits this category - and its backers agree).

Bauxite is the rock that is essential for the production of aluminum.

A material that is growing in importance to countries around the world...

... not least for its critical role in defence supply chains.

Typically bauxite assets with these grades and this much scale are owned by major producers like $163BN Rio Tinto and $12BN Alcoa.

CAY raised $215M with $170M cornerstoned by its major shareholder Eagle Eye Asset Management and Cameroon’s biggest financial services company (AfriLand).

Read more: CAY secures $215M in capital - now fully funded for CAPEX - production (and revenue) in first half of 2026

Watch more: CAY investor conference call scheduled for Tuesday 30th September: Sign Up Here

Advance Metals (ASX:AVM)

AVM has three silver projects in Mexico which combined have foreign resources of an estimated 100m+ silver equivalent ounces.

An estimated 100M+ ounces silver equivalent (non-JORC) aside... on Friday AVM announced more results from its Victorian gold project.

We Invested in AVM for the silver because we think the silver price is going to keep running hard and will take silver stocks with it...

So far so good.

...but AVM’s gold results on its “side project” are now getting our attention too.

Sort of like when your side salad at a restaurant is surprisingly good.

(its helps that gold prices are also hitting new all time highs nearly every day this week)

AVM just re-assayed two previous hits from the project and actually UPGRADED the two best results to...

• 3.4m at 68.2g/t gold from 187m and
• a monster 1.3 metres hit at 305.8g/t gold from 169.6m depth.

Read more: AVM: Our new silver stock - also delivering ultra high grade gold hits like Falcon Metals?

UniQure: How QURE Stock Rises 10x To $500?

Trump Plans New Tariff Push With 100% Rate on Patented Drugs - Bloomberg

Odd Lots: Ozan Tarman on What's Driving The Non-Stop Rise in Gold and Tech - Bloomberg

Peru: Westlawn acquires interest in the Z-61, Z-62, and Z-63 blocks offshore Peru in farmout deal with Chevron

This news is of particular interest to CND as it has some oil & gas assets in offshore Peru, and shows the potential interest from companies to farm-in to the region.

CND holds 80% of an estimated 1 TCF discovered gas field and ~3BN barrels of undrilled prospective oil resources in offshore Peru - and is on the lookout for a farm-in partner.

If you want to see what can happen when an under the radar oil & gas stock gets a farm-in deal, take a look at Finder Energy this week:

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.

Lula Concludes New York Trip Riding High After Trump Shout-Out - Bloomberg

Interesting SGQ’s Managing Director John Prineas was in New York around the exact same time... I wonder if President Lula knew that he had the Executive Chairman of one the highest potential Brazilian rare earths projects there as well...

Exclusive: G7 weighs price floors for rare earths to counter China's dominance, sources say | Reuters

St George Mining research update - Pitt Street Research

CAY, capital raise presentation.

Investor conference call scheduled for Tuesday 30th September: Sign Up Here

SGQ RIU Resources presentation:

Pursuit Minerals MD/CEO Aaron Revelle Presents at Resource Rising Stars Conference, Gold Coast

Episode 101 - Mining 101: Jargon made simple... by experts

A word of caution...

While we aim to highlight developments in the small cap space, investing in early-stage and small cap companies - like those we cover - is inherently risky.

These companies often face funding challenges, regulatory hurdles, and market volatility. Announcements may reflect aspirations more than guaranteed outcomes.

Things can, and often do, change.

Just because a company has signed a deal, released drill results, or appointed a new director doesn’t mean success is assured.

Always assume delays, cost overruns, or results that don’t pan out.

We’re here to share insights, not offer personal financial advice - so please do your own research and speak with a licensed adviser before acting on anything mentioned.

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Bye for now.