Sunday Edition: 27th July

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.

Yesterday we wrote about SS1’s chances to be “the next VUL”.

Both companies picked up a big project, in the right location, just before the theme/commodity took off.

VUL with lithium in Europe before the 2020 lithium run, and SS1 with a US based silver and US critical metal (antimony) project.

The other way to ride a major macro wave is to pick up a project just as a macro theme has started to take off...

Like RML did a couple of months ago with its US-based gold, antimony, silver and tungsten project.

(next door to $2.9BN Perpetua’s gold and antimony project.)

RML has delivered a great run so far just as the US critical metals theme starts to kick into gear.

If you watch one video this week, watch the first 12 minutes of this interview with the MP Materials CEO.

A really good insight into the US government’s intention to support US critical minerals projects.

Read our Saturday Weekender note here: Nothing moves like a hot commodity.

Anyway - here’s what else happened last week:

Resolution Minerals (ASX:RML)

On Friday our USA Investment RML received shareholder approval for its acquisition of the Horse Heaven Antimony-Tungsten-Gold-Silver project.

RML is next door to the ~$2.9BN Perpetua Resources, which has the largest antimony project in North America, and a 4.8 million ounce gold reserve.

Now that RML shareholder approval has passed, it means that all of the key steps to complete the transaction have been satisfied, and completion is set to occur early this week

RML is scheduled to start drilling in August.

With past production of gold, antimony and tungsten on RML’s ground, and surface mineralisation present, we are looking forward to RML’s maiden drilling program here.

Earlier in the week, RML strengthened its team with some very familiar names to ASX small-cap investors.

Steve Promnitz (ex Lake Resources) and Brett Lynch (ex Sayona Mining).

Both have been behind some of the big micro cap success stories in recent years:

• Steve was behind Lake Resources which went from a micro cap capped at $1M to a $3BN company at one point.
• Brett was behind Sayona Mining which was also once capped in the billions of dollars (at the height of the lithium market).

Noting of course the past performance of those stocks is no indication of the future performance of RML.

Steve and Brett will spearhead RML’s go-to-market strategy in the US critical minerals sector, drawing on their experience scaling early-stage companies into billion-dollar enterprises.

Watch Jane Morgan interview the pair here, where they run through why they chose to join RML at this point in time:

Resolution Minerals (ASX:RML) - Steve Promnitz and Brett Lynch join RML - July 2025

And watch RML’s US CEO Craig Lindsay’s short video from site here where you can get a better understanding of the asset:

Solis Minerals (ASX:SLM)

Tiny explorer SLM is drilling for copper and gold right now in Peru.

This week, SLM hit more visual copper and gold from its second hole in the campaign.

SLM has now hit visual copper and gold across both holes.

SLM said that assay results from the first two holes are due in July/August - so likely only a few weeks away at most.

This will be where we will get a look at the lab assayed grades hit.

SLM’s drilling continues...

Condor Energy (ASX:CND)

The ~$16M capped CND holds ~80% of a giant offshore petroleum exploration block in Peru, and is surrounded by oil and gas super majors, TotalEnergies, Occidental Petroleum and Chevron.

This week CND had its exploration permit extended for another 12 months.

CND has been operating under a Technical Evaluation Permit (TEA) to complete data reprocessing work.

Following that work, CND has defined:

1. Piedra Redonda gas project - 2C contingent resource net to CND of ~802Bcf of gas - one of the largest undeveloped offshore gas discoveries on the west coast of South America.
2. Oil exploration targets - unrisked ~2.4BN barrel prospective resource net to CND across five targets (the single biggest being a ~800M barrel prospect).

With its exploration permit extended for another 12 months, we now wait for CND to progress its discussions with potential farm in partners for drill testing.

CND has previously said that a “farmout process” had “commenced with multiple parties in CND’s data room”.

Techgen Metals (ASX:TG1)

This week microcap copper/gold explorer TG1 published an update on a number of WA projects that it is working on.

Here is the update (ranked in order by the projects of most interest to us):

1. Blue Devil, WA (Copper, gold, silver) - After securing the “Heritage Agreement” earlier this month, heritage surveys are now booked in for the 30th of July - so this week. TG1 expects to drill its giant EM target following this work.
2. Mount Boggola, WA (copper, gold antimony) - TG1 recently completed geophysical surveys on this project. There are now two targets on the project worthy of following up with drilling. Heritage agreements are next.
3. El Donna gold project, WA (gold) - TG1 recently completed a 6,355m aircore drill program on this project. We weren't expecting a discovery hole here, given the drilling was mostly aircore but we don't mind the ~6m hits at 1.21 & 1.45g/t gold - definitely targets that could be followed up in the future.

GTI Energy (ASX: GTR)

GTR is getting much closer to drilling its US uranium project.

GTR just received federal approvals for its next round of drilling, next is state approvals expected in August.

GTR expects to be on the ground and drilling in September.

GTR’s Lo Herma project is ~16km away from Cameco’s Smith Ranch processing facility - the biggest ISR uranium processing facility in the USA.

GTR already has a ~8.57m lb uranium JORC resource estimate on the project.

With the next round of drilling GTR will be looking to upgrade that number AND the projects overall exploration target:

(Source)

Here’s Jane Morgan interviewing GTR Executive Director Bruce Lane on upcoming drilling plans:

GTI Energy (ASX:GTR) - Lo Herma Drilling Permit & Contract Confirmed - 24 July 2025

GTI Energy (ASX:GTR) - Lo Herma Drilling Permit & Contract Confirmed - 24 July 2025

GTR is also planning a name change to “American Uranium Ltd” and share consolidation, ahead of its drilling campaign.

GTR recently raised $4.5M which gives it a solid cash runway to execute on its plans, and with that capital raise it brought on NASDAQ listed Snow Lake Energy as a strategic cornerstone investor.

GTR has been trading around the $0.003-$0.004 range for a while now so it will be interesting to see how the market reacts to a 1:40 share consolidation with uranium drilling planned.

We like the company name change which pretty clearly reflects what GTR is going after and where...

Lightning Minerals (ASX:L1M)

This week L1M completed site visits at the gold-copper projects it is acquiring in Queensland.

Earlier this month L1M announced the acquisition of a suite of Australian gold-copper projects.

One of which is the Mt Turner gold project in Queensland - this is the project L1M will be drilling first.

Mt Turner sits on a 14km fault with historic gold pits and drill results up to 16m @ 6.5g/t Au.

L1M expects to be drilling Mt Turner straight after the company's EGM (general meeting) scheduled for 24th August to vote on the acquisition and the recent capital raise.

1,000m of drilling is planned across multiple targets.

Here’s the L1M team on site:

We wouldn’t want to meet these blokes out the front of a nightclub, don't think we would be let in.

St George Mining (ASX:SGQ)

On Friday our Brazilian rare earths-niobium Investment SGQ raised $5M at 3.8c per share.

AND with the extra cash is upscaling its current drill program.

SGQ will now be drilling with two additional diamond drill rigs - bringing the total to 5 rigs running concurrently...

SGQ also said that it was assessing opportunities to go into downstream partnerships in the USA for rare earths processing...

(Source)

If SGQ can establish a US downstream processing partnership, it may gain entry to the strong "America First" thematic, backed by unprecedented investments into critical mineral companies like MP Materials.

(who recently had hundreds of millions of dollars of Investment from the US government and Apple)

It's an interesting move which might lead to new levels of interest from the market...

AML3D (ASX:AL3)

Two weeks ago, the US Navy and AL3 signed a letter of intent (LOI) which outlined the US Navy’s forecasts of what it needs in the 3D printing space.

In that letter the US Navy said that it would need 100 new systems over the next five years, and that AL3 would play a “pivotal role” in helping to get there.

AL3 sells 3D printing systems in the United States to the defence and specialty manufacturing industries.

These systems “3D print” complex industrial metal parts on site for customers.

On Monday, AL3 made the first system sale of $1.2M since the letter of intent was signed.

So while the $1.2M system sale was the first, based on that letter there could be at least another 99 to come...

(But of course, the Navy could potentially use other suppliers)

Read more: $1.2M AL3 system sale into US Navy - US Navy wants another 99

Snow Lake Acquires Strategic Stakes in Multiple U.S. Critical Minerals Projects

This week Snow Lake Resources (NASDAQ:LITM) provided an update on its strategic investments in US-based critical minerals companies listed on the ASX.

Which coincidentally all happen to be stocks we are also Invested in.

So far Snow Lake has invested in three ASX-listed companies that we have in our Portfolio:

• RML - US-based antimony and gold exploration next door to $2.9BN capped Perpetua Resources
• GUE - North American uranium exploration projects, AND a major stake in a uranium enrichment technology
• GTR - Uranium exploration project in Wyoming USA

In the announcement Snow Lake says that it “continues its search for opportunities to acquire interests in U.S. based critical minerals projects with potential to be fast-tracked into production.”

We think that the ASX has a head start when it comes to raising capital for mining juniors.

The ASX is home to some of the world’s biggest mining companies - and some of the richest people in the country made their fortunes in mining.

ASX investors understand mining and like to invest in it.

The USA’s stock exchanges are just not that into metals and mining... yet.

What this means is that many early stage metals and mining projects from around the world find their way into ASX vehicles.

(including many US based critical metals projects, that until recently probably couldn't find enough interest to raise money and list in the USA)

The USA investor pool appears to be only just catching on to metals and mining opportunities now...

So could there be a wave of companies and individuals like Snow Lake investing in ASX-listed juniors with US-based projects?

We think so.

Read our full take on this topic here: ASX Miners Catching US Attention

Lithium bull market sends Pilbara Minerals and MinRes rocketing (AFR)

It’s been a good return to form for some of the lithium darlings this week.

Pilbara Minerals is up around 70% over the last two months and MinRes is up around 74% in that same time.

(noting that the past performance is not an indicator of future performance)

While this bounce-back in the major lithium players only claws back a fraction of the losses that have been suffered over the past 2 years, it may be a sign of bigger things to come for the lithium stories.

This week Canaccord Genuity published a research report on lithium stating that demand was “much stronger than previously expected”.

Canaccord states that at these current incentive levels for producing lithium, more supply will be needed to come online by 2027.

We think that this bounce back comes at the right time for our US-based lithium company PFE, who has signed a deal with EnergyX to sell its Smackover Lithium project for $40M ($6M cash and $34M in equity).

An increase in the value of lithium companies could either (1) lift the value of the EnergyX equity to PFE, or (2) encourage another bidder to step in and beat EnergyX’s initial offer.

Either way it should be good for PFE.

Another company in our Portfolio set to benefit is PUR, who has a lithium brine project in Argentina.

While many ASX-listed companies jettisoned their lithium projects and turned to other assets like gold, PUR has continued to develop its lithium project.

We think that a turn in the lithium sentiment suits a company like PUR, who has been “developing in the downturn”, rather than new companies that emerge in the hot market.

‘Not for everybody’: MDMA production for PTSD begins in Australia (AFR)

This week the AFR reported that an Australian-based company called Cortex completed its first production run of 10,000 capsules of medicinal MDMA in Australia.

This is the world's largest single batch of high-quality therapeutic MDMA and two years in the making.

Until now, the majority of medicinal MDMA has been produced overseas.

And we think that these new domestic manufacturing capabilities are good news for our Australian-based psychedelic therapy company Emyira (ASX:EMD).

EMD is the first company in Australia to have the regulatory approval to deliver psychedelic assisted therapies for mental health conditions like PTSD.

EMD got a shout out in that AFR article above as well:

This was attributable to the recent Medibank agreement with EMD, which sees Medibank cover the cost of psychedelic assisted therapy for PTSD in EMD clinics.

EMD is looking to scale up its therapy offering to the hundreds of thousands of Australians that suffer from PTSD, and securing a domestic supply of medicinal grade MDMA is a big step towards delivering this.

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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.