Sunday Edition: 5th October

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...

EXR, HAR, ILA, IIQ, LKY, PFE, AVM, JBY, IVR, RCM, PUR

Yesterday we explained why we’ve been quickly adding ASX listed silver stocks to our Portfolio over the last 4 weeks in our Saturday note.

Over the coming 12 months all will be revealed...

Will it be cabbages or glory for us?

Charting expert Michael Oliver reckons “silver is going to go vertical” - it would be great if he is right.

(no guarantees of course)

But what about the OTHER current macro investment theme driving small ASX stocks - U.S critical metals?

The US government and newly named “Department of War” are rushing to secure “critical metals” inside US borders

...and now even outside the US:

(source)

We already have LKY and RML... the early ASX listed movers in US based critical metals projects...

Are there any other US critical metals stocks we are missing?

Before the theme really starts kicking off?

Let us know by replying to this email...

Down below, there’s also some other interesting stuff we watched and read.

Happy Sunday...

EXR’s JV partner announced that drilling had commenced on the Diona-1 well in Queensland.

EXR is free carried for a 49% stake in the project which sits ~1km from a tie-in point to existing gas pipeline infrastructure.

A discovery here could be commercialised relatively quickly... On Thursday there was another update saying that the key target reservoirs would be “intersected soon” which means results shouldn't be far away now.

HAR awarded a drilling contract ahead of the upcoming drilling program expected to begin this month on its USA gold project.

HAR’s plan is to drill up to 2,500m of HQ core diamond drilling, aiming to convert the historic high grade non JORC resource estimate of 286,000 oz @ 9.28g/t gold into JORC compliance.

With the market chasing gold stocks now, if we see anything like those historic drillcores that were re-assayed (intercepts like 1.3m @ 108g/t gold and 3.7m @ 108.7g/t gold), we have a feeling the market may start to pay more attention to HAR.

ILA is set to find out in around two months time if its Marburg treatment drug could be a $200-$500M cash generator within the next year.

Documents were submitted to the FDA to support its case that it should be approved to use the FDA’s Animal Rule, which would allow its drug Galidesivir to be fast-tracked by the regulator.

This may come with a tradeable Priority Review Voucher (valued on average at US$150M) and/or a US government stockpiling deal which can be worth well above the US$100M’s.

ILA expects to hear back on this on or before November 12th (US time) - now less than 45 days away.

IIQ had some of its data published in a peer reviewed journal for its exosome-based platform technology.

The proof of concept data was published in the Journal of Visualised Experiments (JoVE), showing both the in vitro (in test tubes) cancer-killing efficacy of its engineered CAR-T-exosomes and also the scalability of its EXO-ACE manufacturing platform.

This comes on the back of IIQ last week announcing that its therapeutic killed more than 90% of cancer cells in-vitro (in test tube).

LKY has expanded and accelerated its collaboration program with Rice University for antimony processing.

The program began around 6 weeks ago. The new expanded program will include the testing of multiple antimony feedstocks from various sources, including from LKY’s Mojave project & from another ASX listed company EV Resources.

Interestingly there was a mention of discussions being underway with an additional mining group to further evaluate the DeepSolv technology...

Also this week, LKY announced it had received approval for an expanded exploration program at its Desert Antimony Mine.

And LKY expects to be drilling its El Campo rare earths project this quarter...

PFE completed the $40M sale of its US lithium asset to US based EnergyX.

The deal involves $2M cash upfront, $2M to be received in both 9 and 18 months time plus shares in EnergyX currently valued at $34M (noting this is a private company so the valuation can be a little opaque).

The deal means PFE will get a bit of a cash boost and capacity now to chase new projects - we note PFE has made it clear they are looking at US based projects, particularly those based on the US critical minerals theme, which as you should know we are a big fan...

EIQ released a big update this week that covered several fronts relating to its AI-based heart disease detection product.

An increase in usage of its AI detection software, a trial with a leading global device manufacturer, a study with the Mayo Clinic, ScImage partnership update, SARC MedIQ update, the hiring of 2 new strategic advisors that could open up sales opportunities and a NEDA study underway.

Oh, and also plans to expand into the European Union where heart disease is estimated to cost €29BN annually...

AVM raised $13M to accelerate exploration across its portfolio of Mexican silver and Victorian gold projects.

The raise was supported by a few metals focused global funds, including Jupiter Asset management and Tribeca Investment Partners (who between them took $6.5M of the total $13M), plus Lowell Resources Fund and APAC Resources participated.

We also managed to secure an allocation in this raise, and we look forward to seeing what AVM can deliver over the coming months.

James Bay Minerals (ASX: JBY): Our new Small Cap Pick of the Year

“Pick of the Year” is a label we reserve for companies that we think have the highest potential to deliver us outsized returns.

Especially our Next Investors “Small Cap Pick of the Year”.

Our first Next Investors Small Cap Pick of the Year in 2020 was Vulcan Energy Resources - it was up over 8,000% at its peak, it still remains up 2,900%.

Vulcan is probably our best ever Investment result.

Our 2024 Small Cap Pick of the Year, Sun Silver has hit new all time highs this week, up over 600%.

(past performance is not an indicator of future performance)

So our latest “Small Cap Pick of the Year” has big shoes to fill...

JBY is our 2025 Small Cap Pick of The Year.

This week JBY announced the acquisition of a previously producing, high grade silver project, in Texas, USA.

17.5M ounces of silver (non-JORC) resource estimate AND a $150M processing plant and infrastructure in Texas, USA.

Geologically, it actually sits on Mexico’s famous Sierra Madre belt, which is home to some of the world’s biggest silver producers, BUT JBY’s project sits just INSIDE US borders.

JBY’s 17.5M ounce foreign resource estimate is at an average silver grade of 289g/t.

(this is a VERY high grade when it comes to silver projects)

With plenty of exploration upside. JBY says it is planning to drill before Christmas...

Read more: Our 2025 Next Investors Small Cap Pick of the Year: James Bay Minerals (ASX: JBY)

Investigator Resources (ASX:IVR): New Investment

We added IVR to the Portfolio this week.

IVR is an advanced stage, silver development stock.

We Invested in IVR to see it produce its ‘first silver bar’.

IVR first made its silver discovery way back in the last silver bull market of 2011.

Since then its been working up this now advanced silver project (14 years!) - diligently plugging away before silver has once again “become cool” again in 2025 and started getting market attention.

IVR owns 100% of one of Australia’s highest grade pure play silver projects, located in South Australia.

It has a 57M ounce silver JORC resource estimate with an average grade of 73g/t.

Now that silver is coming back, the company is gearing up to develop its project into a mine and rev up its exploration to grow its silver resource (this week’s capital raise gives them the cash runway for this).

IVR recently bought on a new Managing Director, Lachlan Wallace, former CEO and MD of Hillgrove Resources where he led the design, permitting, financing and restart of the Kanamantoo copper mine, also in South Australia...

We are backing him to bring another mine into production with IVR.

Read more: Our New Investment: Investigator Resources (ASX: IVR)

Rapid Critical Metals (ASX:RCM)

One of our latest silver Investments is RCM.

RCM has an estimated 67M ounces of high grade silver equivalent resources (at around 400 g/t AgEq) in NSW, across three projects.

RCM is Australia’s highest grade, undeveloped, silver equivalent company.

RCM is targeting 100M ounces of silver equivalent resource estimates, via organic growth (which means drilling out its current assets - and RCM is drilling right now).

Three big institutions came in on the last capital raise, which is when we Invested:

Sprott, Tribeca and Jupiter Asset Management - combined they will own 25.5% of the RCM register by early November (more on these guys in the link below).

Read more: RCM: Now drilling to expand 67 million ounce silver equivalent resource as silver price breaks new records every day.

Pursuit Minerals (ASX:PUR):

With gold near record highs, what better time for PUR to acquire a large gold exploration asset...

This week PUR acquired 100^km2 of ground in the Santa Cruz Province of Argentina, one of the world’s premier precious metals provinces.

This province is host to ~30 million ounces of gold equivalent discoveries including Newmont’s Cerro Negro 8Moz gold mine (which is roughly 100km away from PUR’s project).

PUR wants to make a Tier 1 precious metals discovery here - a new multi-million ounce find.

All the ingredients are here: structure, mineralisation, geophysics, and geochemistry.

We are backing the PUR team to swing for the fences here and try to unlock a new gold discovery.

This won't be easy... exploration never is - but the rewards if successful are high.

PUR is planning to drill test its new asset this year.

PUR’s Chairman Tom Eadie knows his way around these kinds of gold assets. Tom is the Chairman of another ASX listed gold company Southern Cross Gold.

Southern Cross, for a long time, was misunderstood by the market... however, Southern Cross has gone from $3.80 to $8/share and a $1.8BN market cap under Tom Eadie’s stewardship.

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

The market has now come to appreciate the value of projects with high grade, thin, gold veins.

We think PUR Chairman Tom Eadie sees the similarities between PUR’s new project and his other company Southern Cross Gold...

... and the 8 million ounce Cerro Negro project and mine 100km up the road.

Read more: PUR: Acquires Gold Project in Argentina - Gold price smashing records

Watch more: The below video is a conversation between PUR CEO Aaron Revelle and Sean Sandilands from STK Markets a few days ago while the company was raising capital to fund this transaction.

STK Markets were strongly supportive of the recent PUR capital raise, having previously floated Southern Cross Gold... having done very well there backing Tom Eadie, it looks like they are keen to back PUR here with this new gold asset.

Pursuit Minerals - ASX Placement to Sophisticated and Professional Investors

U.S. to Take Equity Stake in Lithium Americas and its Nevada Mining Project - WSJ

WSJ - The US has made an unprecedented move into the electric future, by buying a stake in a Nevada lithium mine that could fuel the next lithium boom and tilt the global energy race.

With the US taking an interest in lithium stocks, we hope this is good news for PFE, who just closed a $40M deal with EnergyX who is building a DLE project in the Smackover region of the US.

Now that the deal is closed, PFE shareholders will hope that EnergyX can build up to a level where it will IPO on the NASDAQ, likely when the company is closer to production.

A few weeks back, EnergyX signed an agreement with Goldman Sachs, who will act as financial advisor to EnergyX in connection with potential partnerships... maybe that's also an indication that an IPO is getting closer for the company.

Energy Fuels Is Cashing Up To Expand Their Rare Earth Business | The New Money

The New Money - Energy Fuels (NYSE listed) is doubling down on rare earths with a US$550 million raising and a new Brazilian mine partnership, to fuel America’s push for critical minerals independence.

China Bans New BHP Iron Ore Cargoes, Escalating Pricing Dispute - Bloomberg

Bloomberg - China has escalated its pricing standoff with BHP by banning all iron ore shipments, a move that could rattle global supply chains and deepen tensions over the world’s most critical steelmaking ingredient.

Looks like China is unhappy with BHP and its iron ore prices. Good news for ex-BHP iron ore projects that China may look to to diversify its supply chain.

One that is in our Portfolio is Genmin (ASX:GEN), who has an iron ore project ready for development in Gabon... all it needs is financing and offtakes.

GEN’s share price has been on the move the last week coming from a low of $0.019 to a high of $0.034 and settling the week at $0.024.

We think that this macro news may be what is spurring the interest in the share price and speculators are betting that GEN is getting closer to a financing/offtake deal for its mine.

Exclusive | Pentagon Pushes to Double Missile Production for Potential China Conflict - WSJ

WSJ - Facing a potential China conflict, the Pentagon is pressuring US missile makers to double or quadruple production, aiming to bolster critical stockpiles with a $25 billion funding boost.

Zijin Gold Soars in Hong Kong Trading Debut After World's Biggest IPO Since May - Bloomberg

Bloomberg - Zijin Gold's US$3.2BN debut in Hong Kong marks the largest global IPO since May, with shares soaring up to 66%, signaling a strong investor appetite for China's gold mining sector.

Zijin, Gold Miners Stage Comeback as Equity Sales Surge to Record High - Bloomberg

Bloomberg - Zijin Gold's US$3.2BN IPO propels China's mining sector to a record US$20BN in equity sales this year, marking a powerful comeback as gold prices hit new highs.

Namibia’s offshore story is about to get even more interesting. Chevron has officially taken 80% and operatorship of PEL 82 in the Walvis Basin — a massive 11,400 km2 block sitting 72–300 km...

The project that Chevron has taken an 80% stake in is directly north of the block our Investment Grand Gulf Energy (ASX:GGE) has an exploration license application for.

Chevron will be drilling the Gemsbok well in 2026–2027 - any discovery here should be very interesting for micro cap GGE holders...

Validation Report on Elixir Energy’s Assets and Strategy | Elixir Energy Ltd (EXR.AX)

This introductory piece on EXR’s assets and strategic approach was authored by Jon Bishop.

Jon brings over two decades of highly respected research experience to this work.

He was formerly the Head of Research at Euroz Hartleys and more recently covered the resources sector at Jarden.

Prior to his career in finance, Jon began as a geologist at Woodside and has long been regarded as one of the leading voices on early-stage oil and gas companies in Australia. His independent perspective is widely valued among small cap institutions.

Worth a read...

Canyon Resources Ltd CEO Peter Secker gave a detailed update on the recent A$215m funding package and the exciting future of the Company

Arlington Rapallo 2025: Simon Catt Interviews Mithril Resources (John Skeet & Colin Jones)

In this video, Arlington Group Asset Management Ltd’s Simon Catt interviews John Skeet and Colin Jones from our Mexican silver Investment Mithril Resources (ASX:MTH).

In September Simon hosted a number of mining companies at Arlington Rapallo, a private gathering of mining leaders, institutional investors, and global thinkers, hosted in the elegant surroundings of Villa Porto Rapallo.

This video is one of those conversations.

Looks like an excellent meet up in a great location - maybe next year we will get an invite to the “Davos of Mining on the Italian Riviera”...

In this conversation they cover:

• Mithril’s $20M AUD cash balance and an expanded geological team of 8 on site.
• Building the groundwork: LiDAR, mapping, sampling, and mag surveys across a 70 km2 district.
• Drilling updates: Target 5 underway, Target 3 about to start, both potentially larger than bonanza-grade Target 1.
• District-scale perspective: multiple mineralised trends over 10 km, with gold-rich higher elevations and silver-rich lower zones.
• Comparisons to Palmarejo and Vizsla Silver and why Copper Queen could redraw the map.
• Discovery curve timing: why the next 12 months could deliver a breakthrough.

Along the way: barroom analogies, “rage baiting” T-shirts, and the challenge of choosing which discovery target to buy a drink for first.

RRS Gold Coast 2025 - Keynote Address from Hedley Widdup, Managing Director of Lion Selection Group

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.