Sunday Edition: 15th February

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. Any forward-looking statements are uncertain and not a guaranteed outcome.

Below you can find everything we wrote about last week, plus some interesting stuff we came across on our travels.

Read what we wrote in yesterday’s Saturday note - click here to read.

Quick Takes: LKY, CND, VKA, BMG, PFE, MTH, KAU, TG1, GGE, KNI, SGQ

Deep Dives: RML, PNN, BPM, EMD, NC1

LKY (OTC: LKYRF) identified possible extensions to its Desert Antimony Mine project in California, USA.

LKY identified unmapped extensions to known mineralised areas following on from recent LIDAR surveys that suggest mineralisation trends east-west beyond the old workings.

Drilling on rare earth targets is expected "imminently" before the rig is expected to move to these new antimony targets.

So LKY will be aiming to expand the footprint of this new mineralisation soon.

Also, LKY joined the Critical Minerals Innovation hub in the US, opening the door to future funding/collaboration opportunities in the US.

This consortium is focused on securing local supply chains for the clean energy economy.

Membership grants LKY access to collaborate with top US national laboratories on Department of Energy (DOE) funded R&D projects.

Initially, the focus will be on advancing rare earth separation technologies and exploring novel antimony oxide applications for its historic Desert Antimony Mine restart.

CND found a possible extension to its single biggest offshore oil prospect in Peru.

A 341 million barrel prospective resource extension from its Raya West prospect, bringing the total for the "Greater Raya prospect" to over 900 million barrels.

This addition boosts CND's share in total offshore prospective oil resources to over ~2.7BN barrels, alongside its 80% stake in a 1 Tcf discovered gas field as it seeks farm-out partners.

VKA started a geophysical survey on its Linka tungsten project in Nevada, USA.

The geophysical survey is utilising ground gravity (across 0.5km2) and magnetic surveys (2.2km2) to map subsurface mineralisation.

This modern exploration approach aims to identify extensions to the historic open pit mine which produced ~123kt at 0.54% tungsten, these results are expected in mid-March.

BMG confirmed drilling at its 518K ounce Abercromby project would start “on or about 24 February 2026”.

A 10,000m drill program at its 100%-owned Abercromby project in WA will commence on or about February 24, 2026.

This aims to expand the existing 518k ounce gold resource by testing for depth extensions and targets to the south, with the potential to uncover a "Never Never" style high grade deposit.

PFE finished the first modern exploration program across its US silver-antimony project in over 100 years.

1,408 soil samples and 47 rock samples were collected, uncovering previously unmapped historic workings that suggest the district's mineralisation may be more extensive than initially thought.

Results are expected within the next ~6 weeks and will be used to define drill targets.

MTH (OTC: MTIRF | TSX: MSG) put out a general exploration update for its project in Mexico.

MTH has defined a new "large silver-rich zone" at Target 5, where previous sampling returned grades up to 4,520g/t silver.

Concurrently, MTH has commenced a 3,000m Phase IV drill program at its existing 373koz gold and 11Moz silver resource (Target 1) to test for extensions to the west and down dip to the east.

KAU defined a resource at one of the waste dumps sitting on its Maldon gold project in Victoria.

A "Strategic Plan" is being developed for its 100%-owned Maldon gold processing plant in Victoria, which is currently operating below its 200ktpa capacity.

KAU has defined a 8,649oz gold resource in waste dumps at the Maldon project, potentially unlocking ~$62M in gold (at ~A$7,200/oz) to feed the plant and another waste dump to be tested.

With the Henty mine in Tasmania generating steady cash flow, KAU aims to leverage this spare processing capacity to generate additional revenue.

TG1 acquired more land at its WA copper-gold-antimony target.

The additional land at its Mount Boggola copper-gold-antimony project in WA, just days before drilling is set to commence.

Earthworks were completed last week, and TG1 plans to drill single holes into 4 targets, including the main MB1 target.

This will test high-chargeability IP anomalies that historic drilling by Newcrest narrowly missed.

GGE sampled visible antimony from its project in Utah, USA.

The option on this project was acquired just last week and the samples were collected near the border with American Tungsten and Antimony's project.

This supports GGE's theory that the neighbouring mineralised system extends into their ground. And the results from the 20 samples taken are currently pending.

KNI is now days away from drilling its gold-silver and base metals project in NSW.

The Commonwealth gold-silver-base metals project is in NSW, with a 6-hole, 1,200m diamond drill program scheduled to start around February 14.

The campaign will test for high-grade extensions around the known resource of ~89koz gold and ~3.3Moz silver, aiming to replicate historic hits like 7m @ 6.3g/t gold and 496g/t silver.

SGQ received further state government support for its rare earths and niobium from its project in Brazil.

The State of Minas Gerais has now granted SGQ a preferential tax regime for its Araxa Project, exempting equipment and materials from state goods tax (up to 18%) for both pilot and full-scale plants.

This support, combined with the joint venture with CEFET University to build a large-scale pilot plant, significantly de-risks the project's development and strengthens its position within Brazil's domestic critical minerals supply chain.

Drilling is ongoing with a resource upgrade expected this quarter.

Resolution Minerals (ASX:RML | OTC: RLMLF)

RML has exposure to:

1. USA critical minerals - specifically military metals antimony and tungsten, AND;
2. Precious metal gold - now with two discoveries (that could actually be connected to one another)

Next door to one of the USA’s gold and critical minerals national champions - $4.9BN Perpetua Resources:

(source)

RML is attempting to become “Perpetua 2.0” and so far with the gold prospects, it may actually be onto something.

15 weeks ago, RML hit a giant 189.2m @ 1.3g/tonne gold discovery hole from its project in Idaho, USA.

A few days after that RML followed up with 253m @ 1.5g/tonne and 265.2m @ 0.6g/tonne.

Those are discovery intercepts usually seen in the early days of multi million ounce discoveries.

Then earlier this week, RML hit a second discovery intercept - 172.2m @ 0.463g/tonne gold, with the hole ending in mineralisation.

So now we know there is gold across ~1.5km of strike - with multiple holes ending in mineralisation at 250m+ depths:

(source)

What we don't know is if the two discoveries are part of one larger system...

OR if they are two independent structures.

Luckily RML had the following image in this week’s announcement showing us a few different scenarios:

(source)

RML is already permitted for another 45 holes - all of which the company plans to drill in 2026 (starting as early as May).

So we shouldn't have to wait too long to find out which one it ends up looking like.

Read more: RML hits a second gold discovery - ending in mineralisation, across 1.5km of strike

Power Minerals (ASX:PNN)

PNN owns 100% of a rare earths/niobium block that covers the entirety of an interpreted carbonatite intrusive in Brazil.

Carbonatites are the type of structures that host the world’s biggest operating rare earths projects.

MP Materials’ Mountain Pass mine in California is a hard rock carbonatite deposit.

Lynas’ Mount Weld in Western Australia is a hard rock carbonatite deposit.

And the mine currently responsible for producing ~80% of the world’s niobium (also in Brazil) is a hard rock carbonatite deposit.

PNN holds all of the ground covering what it is interpreting as a “carbonatite intrusive complex”:

(source)(source)

PNN has spent the last ~8 months poking shallow holes into the project, hitting intercepts like ~51m with 1.16% rare earth oxide grades (from surface). (source)

And just last week PNN started drilling with a heavier rig capable of testing targets at depth.

Over the next few months, we will have assay results from the deeper holes.

We have been looking forward to this because it will mean PNN can test for at depth extensions to the rare earths intersected by the shallow holes.

AND we can get a better sense of what sits inside PNN’s “carbonatite complex”:

(source)

With the RC drilling we want to see PNN drill deep and extend all of those shallow hits.

So far, a large part of the ~5.8km^2 carbonatite is untested so there is potential for a substantial deposit to be uncovered IF the deeper drilling comes in.

Eventually, we want to see all of that data flow into a maiden resource on the project “in the current quarter”. (source)

Read more: PNN starts 10,000m rare earths & niobium drill program - maiden resource due this quarter

BPM Minerals (ASX:BPM)

BPM just got granted the ground covering its “Bonnie and Clyde” target in WA, and a 50-hole drill program is already in the works.

Those are the two targets sitting across a ~6km long gold in soil anomaly that have NEVER been drilled before - where BPM can go for a “moonshot” new discovery.

Big enough of a target to attract two resource funds - Tribeca Investment Partners and Terra Capital - onto BPM’s register.

The two funds anchored BPM’s $3.5M raise this week at 23c per share. (We also participated)

(source)

Bonnie and Clyde sit across an area so large it’s comparable to that of the 8Moz Tropicana deposit owned by $77BN AngloGold and $6.3BN Regis Resources.

AND the Glenburg discovery - which has re-rated Benz Mining’s share price by over 600% in the last year.

(Source)

As if Bonnie and Clyde weren’t interesting enough already...

BPM reviewed old exploration data (including an old diamond drillhole) and said that another one of its prospects (Dragonfly) is:

“interpreted as part of the broader Bonnie & Clyde mineralised system” and more importantly:

The “historical diamond core from Dragonfly confirms Tropicana-style mineralisation”.

So, BPM has a target with a footprint large enough to be a major gold system and the geology looks like it may share similarities with a known mega discovery in the region.

And now it has two big NEW institutional investors along for the ride too - Tribeca Investment Partners and Terra Capital.

It's not often we see institutional investors like these two come onto the register of a pre-discovery junior explorer.

Which tells us they are liking what they see with Bonnie and Clyde.

Read more: Ground granted on an 8Moz Tropicana look-alike, two new institutional backers, and drilling in March

Emyria (ASX:EMD)

EMD has positioned itself as a first mover, building out a network of private clinics providing psychedelic‐assisted treatments for mental health.

EMD is a first-mover and specialist operator in a small (but very fast growing) market for psychedelic mental health care.

(sort of like being the first and only petrol station network when cars were first invented)

The first mover advantage is why we think major private health insurer Medibank and the Department of Veterans’ Affairs (DVA) are paying for EMD’s treatments.

EMD is currently in scale-up mode - currently opening up new clinics all around Australia to meet increasing demand.

EMD is capped at $44M and had $10.5M cash in the bank at 31 Dec 2025.

EMD already has:

• A clinic in Perth at full capacity (and currently being expanded) - now with 5 approved psychiatrists (up from 2), 39 trained therapists, and a fourth treatment room about to come online
• A clinic operating in Brisbane - with first insurer-funded patients nearing completion
• A clinic opening in Victoria at Avive Health's Mornington Peninsula hospital - expected to open next quarter, AND
• Over 100 patients screened, actively receiving treatment or waiting to start - (with a further 67 patients booked for screening this quarter - nearly double the numbers we were seeing a few months ago). (source)

All while EMD is looking to grow its national footprint - especially across the east coast of Australia. (source)

The growth model is pretty simple to follow - the more clinics EMD opens (or expands existing clinics), the more dosing that can happen, which ultimately means more revenue.

The two big wildcards for how fast EMD’s expansion plays out are:

1. How many “payers” emerge for EMD’s treatment protocol - EMD already has Medibank and the Department of Veterans’ Affairs onboard as payers. EMD just needs to convince more institutions (e.g. insurance and/or government organisations) to fund the treatment for patients who need it.
2. The indications that get legalised for psychedelic treatments - at the moment EMD can treat PTSD and Treatment Resistant Depression. The more indications that get legalised, the more EMD’s addressable market grows.

The payers ultimately create demand, and the “new indications” point towards blue sky upside - the more conditions EMD can treat, the bigger the market becomes for the company.

The following slide from EMD’s most recent presentation illustrated those two points pretty well:

(source)

What we want to see over the coming months are more of those circles move from the “scoping” stage into the “active” stage.

Read more: First mover in psychedelics - EMD's clinics are at capacity, major payers are onboard, and the data shows the treatment works

Nico Resources (ASX:NC1)

Three weeks ago, we said:

"Our new Investment in NC1 is essentially like a leveraged bet on the nickel price surging, and the economics of NC1's asset improving significantly in parallel"

We also said:

"We think countries could soon rethink selling/sharing their nickel supply for strategic and military reasons"

This week Indonesia made the biggest supply intervention the nickel market has seen in years.

Indonesia ordered the world's largest nickel mine to slash its production quota by 71%.

(source)(source)(source)

More broadly, Indonesia has now put in place nickel production quotas countrywide for 2026 of 260-270 million tonnes - down from 379 million tonnes last year.

That's roughly a one-third cut to production from the country that controls ~50-60% of the world's nickel supply.

Supply disruptions from the world’s biggest producer?

They are now happening in the nickel market.

Nickel prices which have been depressed due to oversupply out of Indonesia are now up around 20% from 6 months ago and over 26% since mid December.

(source) (source)(source)(source)

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 that’s before any of the producers have actually responded to the quotas and cut production.

We expect the full impact should be felt in the market over the next 10 months.

We think the short-term macro outlook is getting a lot stronger for our Investment NC1.

(not to mention the longer term demand outlook for nickel from the billions of AI humanoid robots that are coming - more on that in in the link below).

NC1 owns 100% of one of the largest undeveloped nickel projects on the planet.

In fact it's one of the four biggest - and of those four projects, NC1’s has the highest grade:

(source)

NC1’s project has an initial reserve of 1.56 million tonnes of contained nickel, capable of producing approximately 40,000t of nickel and 3,000t of cobalt annually.

NC1’s asset is genuinely “Tier 1” in terms of size/scale - that term gets thrown around a fair bit with small caps, but this is a real monster - if built, it is capable of producing nickel for over 40+ years.

NC1’s project also sits amongst the group of assets that would be operating in the lowest cost quartile of any asset globally.

Which we hope makes it an attractive new source of supply when the world goes looking for it.

Read more: A 71% production cut at the world's biggest nickel mine - NC1 owns one of the biggest undeveloped nickel projects globally...

Bloomberg - Barrick intends to spin off its~US$62BN North American gold assets into a new IPO by late 2026, aiming to unlock value despite opposition from partner Newmont.

The new North American spin out company could be on the hunt for newer assets, and BKB’s Independence Project sits next door to one of Barrick's large JV’d projects in Nevada.

Bloomberg - US Treasury Secretary Scott Bessent blamed "unruly" Chinese speculative trading for recent gold price swings, calling the market's record peak and subsequent volatility a "classical, speculative blowoff."

The New Money - UAMY and USAS have formed an Idaho joint venture to build a processing plant for antimony, silver, and copper, boosting domestic supply of these critical defence minerals. UAMY’s official release is here.

This could be interesting for our US critical minerals investments, especially those relatively nearby including RML which could potentially be a source of feedstock for this plant. RML recently acquired some processing infrastructure of its own near its own Idaho based project last year.

ABC - Australia announced $739M in funding which will include some toward MDMA-assisted PTSD therapy for veterans, focusing on social rehabilitation and family reintegration to combat the veteran mental health crisis.

The article itself appears to reference EMD’s treatment, listing the cheapest course costing around $30k. EMD also recently put out data to suggest its treatment is not only cheapest but more effective than the traditional treatment avenues.

PUR is hosting a webinar on Tuesday 17th February 2025, 11:00am AEDT, click here to register. This will involve a company update on the lithium and gold projects followed by a Q&A. PUR recently released a PFS on its lithium project, our coverage on that here.

BMG - Emerging Western Australian Gold Producer, Investor Webinar 10 February 2026

TTM - Multi-million Ounce Gold - Silver Project set to be Unlocked, Investor Presentation | February 2026

GEN - Mining Indaba, Cape Town - February 2026

CAY - Developing a Global Tier One Bauxite Project - February 2026

ONE - Full Year Results 2025

BMG Resources (ASX: BMG) Investor Webinar | Strategy, Drill Program & 12 Month Milestones

Ray Dalio: How to Survive the Coming Civil War and Plot to Use Debt and CBDCs to Enslave You

Ignoring the title, we’ve linked to a part of the video where Ray talks about his thoughts for gold portfolio allocation in today’s market. He thinks that people should be looking to allocate up to 15% - which if it began to happen, would cause a massive bull market. He goes on to mention that gold does well when currency does poorly (which appears to be exactly what is currently happening).

ONE Chief Product Officer Niall O'Neill posted with some updates on what's been happening with ONE’s products having recently had a demo session following on from the Q4 update.

Niall has mentioned to keep an eye out on ONE’s LinkedIn page for more on “Ovie”, ONE’s AI product/tool.

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.