Sunday Edition: 6th July

Disclosure: This information is general in nature about speculative investments and does not constitute personal advice. It does not consider your objectives, financial situation, or needs.

Here in our “Sunday Edition”, we send you a quick summary of what we wrote, read, and watched during the week.

Yesterday’s Saturday Edition

Commentary: A very green week in small caps - unloved, beaten down stocks have been rising from July 1st. An update on the “6 key events” that could start a small cap market bull run before mid-July.

Read our Saturday Weekender note here: Beaten Down Stocks Start to Bounce

EchoIQ (ASX:EIQ)

EIQ has developed an AI detection software that helps cardiologists detect heart diseases.

Late last year, EIQ received FDA clearance to use its technology to detect Aortic Stenosis (AS) - a type of heart disease.

Now, EIQ is undertaking clinical validation studiesfor its technology to detect Heart Failure with the world renowned Mayo Clinic... the next step towards a second disease with FDA clearance.

The addressable market for Heart Failure is expected to be ten times bigger than Aortic Stenosis and FDA clearance for Heart Failure is still on track for this calendar year.

Lightning Minerals (ASX:L1M)

This week L1M raised $2M and announced the proposed acquisition of a portfolio of gold and copper exploration assets in Queensland and NSW.

We Invested in this raise, as did L1M Directors.

In the short term, we think the most interesting project is the Mt Turner project in Queensland where L1M has commenced site preparations on a 1,000m drill program.

Permits are already in place, so L1M can get straight into drilling.

Immediate drilling will test directly underneath historical pits that have been previously mined for gold, that sit along a 14.5km fault line.

Watch L1M MD Alex Biggs talk through the acquisition here:

TechGen Metals (ASX:TG1)

Microcap explorer TG1 signed Heritage Agreements this week over its Blue Devil copper project which has two giant electromagnetic anomalies that have never been drilled before (TG1 is aiming to change this).

Rock chips grade as high as 50.5% copper and 18g/t gold.

A heritage survey is scheduled for late July, with TG1 drilling to follow shortly after.

TG1’sgeophysics program was also successfully completed this week at its early-stage WA copper-gold-antimony project Mt Boggola, revealing two geophysics anomalies for TG1 to drill test:

Heritage surveys are still required over this second project for TG1 as well before the company can drill.

Global Uranium and Enrichment (ASX:GUE)

Drilling contractors are now officially engaged and GUE is expected to begin drilling its newly acquired USA uranium project in three weeks time.

GUE recently went into a 50/50 Joint Venture with NASDAQ listed Snow Lake Resources (NASDAQ: LITM) on this asset, an advanced In-Situ Recovery (ISR) uranium project located in the Powder River Basin of Wyoming, the premier US uranium basin.

GUE’s project is surrounded by existing uranium projects held by UEC and the $30BN Cameco.

It's ~ 15km from Cameco’s Smith Ranch Mill, one of the largest uranium production facilities in the US.

GUE plans to drill ~38,000m with the stated goal of better defining the project’s exploration target of 24.4 Mlb to 51.3 Mlb of uranium.

88 Energy (ASX:88E)

88E and its JV Partner Monitor Exploration were granted a 12 month licence extension over its onshore petroleum exploration asset in Namibia.

A new work programme was approved as part of that extension, targeting pre-drill de-risking.

Late last year, 88E completed a 203km 2D seismic survey on the project and identified 10 independent structural closures across the project.

Next 88E will conduct some more airborne geophysics over the project in preparation for a certified prospective resource report.

Here’s the ‘air tractor’ (or plane...?) 88E will use to run those airborne surveys:

While that happens, we are also watching regional peer ReconAfrica’s drilling program closely which is scheduled to start this month.

Recon raised C$19M a few weeks ago, which was upsized from C$10M originally sought, demonstrating the interest in the region.

Any success for Recon would be good news for 88E.

St George Mining (ASX:SGQ)

Right now SGQ is drilling for rare earths and niobium next door to the world’s largest niobium producer in Brazil.

SGQ has already defined globally significant JORC resource estimates of 40.64Mt @ 4.13% TREO and 41.2Mt @ 0.68% Nb2O5.

However the resource is open in all directions and there is significant mineralisation below 100m that hasn’t been included in resource estimates... so those estimates could get much bigger off current drilling.

While drilling continues, SGQ just commenced additional geophysical surveys in parallel to try to get a better understanding of the project area.

SGQ has budgeted for about 10,000m of drilling in this current program, and the geophysics will help SGQ identify the best place to drill (and allocate its capital).

GTI Energy (ASX:GTR)

This week GTR closed a $4.5M capital raise at 0.35c per share, a ~16.7% premium to its last closing price.

Cornerstoning the raise was NASDAQ listed Snow Lake Resources (NASDAQ: LITM), who also have a 50/50 JV with GUE next door.

As part of the deal Snow Lake will take a 9.99% stake in GTR, as well as be eligible for a board seat.

GTR has also flagged a name and ticker code change plus a share consolidation to occur over the coming months, pending shareholder approval.

Island Pharmaceuticals (ASX:ILA)

This week ILA appointed Jason Caroll as its new non-executive chairman, a few weeks after it published the results of its Phase 2a/b clinical trial on Dengue Fever.

Caroll is one of ILA’s largest shareholders and his involvement is a big reason why we Invested in ILA.

Caroll is the CEO of TRYP Therapeutics and a 32-year veteran of the biotech industry - we hope that his experience will help to steer the ILA ship in a successful direction.

AML3D Ltd (ASX:AL3)

The US “Big Beautiful Bill” passed the Senate late in the week.

It’s set to allocate over a US$1BN to improve US ship building processes and efficiency.

On Monday we wrote a deep dive on the impact of this bill on our Investment AL3.

AL3’s metal 3D printing technology quickly and cheaply “3D prints” complex industrial parts for the ship building and defence industry.

AL3 is already in use by US based suppliers to the US Navy.

The Big Beautiful Bill specifically calls out US$450M for “additive manufacturing for wire production and machining capacity for the shipbuilding industrial base”:

(Source: Big Beautiful Bill page 110)

(Source: Big Beautiful Bill page 134)

AL3 just might be in the right place at the right time for Trump's push to reindustrialise the US and “make US shipbuilding great again”.

Read more: AL3: USA “Big Beautiful Bill” vote in a few days to unlock US $1BN in funding... for tech like AL3’s?

Canyon Resources (ASX:CAY)

CAY is on track to build its mine and ship its first delivery of bauxite early next year.

“Production” is what every small cap mining junior sets out to achieve, but very few make it.

(it takes roughly 17 years for a company to go from exploration through to production according to S&P Global)

CAY’s project is a Tier 1 project with an estimated 1 billion tonne JORC resource with an ore reserve of 109Mt in Cameroon, Africa.

CAY’s number one shareholder has been accumulating a position over the last few years, and now sits at 56.19% of the company after exercising more options on Thursday:

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.

Here is the major activity CAY has completed over the last few weeks:

• New CEO Peter Secker officially commenced his position, to oversee the construction of the mine and first bauxite production (Source)
• Secured A$24M from the exercise of options from major shareholder Eagle Eye Asset Management - Eagle Eye now own 56.19% of CAY (Source)
• Secured a US$140M credit facility from AFG Bank Cameroon (one of Cameroon’s top financial institutions). (Source)
• Ordered locomotives (train carriages) - with first deliveries due Q1 2026 (trains are expensive... ordering trains is a pretty strong sign that things are progressing well). (Source)
• Appointed a contractor to start construction on the Inland Rail Facility this month. (Source)
• Appointed a contractor to start road construction this month. (Source)
• Mining contractor and Ore Haulage contractor ready to mobilise by end of the year. (Source)

Read more: CAY On Track to Ship First Bauxite in Early 2026

Sun Silver (ASX:SS1)

Earlier this week our Investment Sun Silver (ASX:SS1) announced a 70m intercept which included a 10,548g/t silver equivalent interval.

It’s the highest silver grade ever hit on SS1’s project (so far...)

...and the highest grade silver hit we have seen anywhere on the ASX this year.

This is SS1’s first drill result of its 2025 drilling campaign.

So more results are coming.

It is also a drill hole OUTSIDE of SS1’s existing 480 million ounces of silver equivalent JORC resource, in Nevada, USA.

Meaning potential further silver resource growth.

And potentially more higher silver grade to the north east.

Read more: SS1: Announces 70m intercept with a 10,548g/t silver equivalent interval... outside of its 480 million ounce JORC resource

Resolution Minerals (ASX:RML)

RML kicked off its exploration program this week right next door to the biggest antimony (plus one of the biggest gold) projects in the USA - $2BN Perpetua Resources.

Drilling is scheduled for next month.

The working theory is that RML’s rocks might stem from the same intrusion as Perpetua Resources’ million ounce gold and 200 million lb antimony resource next door:

RML’s project historically was mined for both antimony and tungsten, and the company also is prospective for gold and silver...

Antimony and tungsten are trading at record highs after Chinese export bans.

And precious metals gold and silver are testing new highs too, probably on global uncertainty.

RML also secured the services of the former Senior Geologist at Perpetua Resources into its team - Austin Zinsser.

Zinsser said “[RML’s] Horse Heaven project reminds me of where Perpetua’s Stibnite Project was when I joined [12 years ago]”.

We’re hoping that RML can come up with the goods in this upcoming drilling program.

Read more: RML: Drilling early next month - Antimony, gold, silver, tungsten in USA next door to ~$2BN Perpetua Resources. Perpetua geologist joins RML...

Watch more: On Monday morning at 11AM AEST, RML will be hosting a webinar to run through all the latest news. Register here to attend

Titan Minerals (ASX:TTM)

TTM just restarted a 6,000m drill program on its Dynasty gold-silver-copper project in Ecuador.

Most of the drilling to date on TTM’s Dynasty asset has been targeting shallow high grade gold and silver (down to 200m depths) - with 82% of the current resource estimate above 200m depths.

TTM confirmed that it would run geophysical surveys to try and locate the source of all the near surface mineralisation.

It could be a giant copper-gold porphyry which feeds the gold and silver TTM has already found...

We want to see TTM show that mineralisation extends well beyond its current resource footprint through extensional hits and more gold at depth.

A JORC resource estimate upgrade is targeted for this quarter...

Read: What’s lurking below the 3.1M oz. gold and 22M oz. silver? TTM going copper porphyry hunting to find the source

Pro Medicus runs to $300 so fast investors can’t catch up (AFR)

If you want to know what success looks like for a small-cap medtech company look no further than Pro Medicus, who has had a monumental rise over the past 10 years.

This week Pro Medicus reached a new high of $310 per share and market cap of $33BN.

This puts it in the top 20 largest companies on the ASX by market cap - larger than Coles, Santos and Qantas.

Pro Medicus shares rose 10% this week off the back of the company securing two key deals totaling US$190M.

These are the kinds of “mega deals” that technology companies can secure if they sell into the US healthcare system.

The US accounts for about 60 cents of every dollar spent on healthcare globally - so it is the right place to develop and sell cutting edge technologies to hospitals.

There are two companies in our Portfolio that are looking to become the ‘next Pro Medicus’, the next major medtech story on the ASX:

• OneView Healthcare (ASX:ONE) [$190M Market Cap] - sells patient experience technology to hospitals that help make hospitals run better and more efficiently. ONE has a partnership with the largest seller of hospital beds in the US - Baxter.
• EchoIQ (ASX:EIQ) [$160M Market Cap] - has developed an AI technology that works alongside cardiologists to help increase detection rates for serious heart conditions that might otherwise get missed.

Of course the past performance of Pro Medicus is not an indicator of future performance of ONE and EIQ. Caution should be exercised in assessing past performance. Small caps stocks, like all other financial products, are subject to market forces and unpredictable events that may adversely affect future performance.

We are hoping to see some major deals with hospitals or hospital networks from ONE and EIQ in the coming months/years.

Military demand strains metal supply chains (Chemistry World)

“Conflict and trade disputes have disrupted global supplies of specialist metals like hafnium, antimony and rare earths”

The supply and demand dynamics for niche minerals are very different to big market commodities.

If you imagine the size of the iron ore industry as a swimming pool, the market for antimony or rare earths would be a mere drop in the pool.

The opportunity, however, is that even though the market for these minerals is incredibly small, the outsized importance of these minerals mean that they are incredibly valuable.

Particularly to defence industries.

According to the article “global military spending hit $2.4 trillion in 2023, almost 7% higher than 2022.”

This has put a strain on these highly important niche critical minerals.

Governments around the world have started to talk about stockpiling rare earths and at the recent Quad partners meeting “critical minerals” were seen as a priority,

Our Investments looking to develop rare earths projects including:

• SGQ - currently drilling for rare earths and niobium in Brazil
• ION - developing a battery recycling technology to extract rare earths (amongst other valuable commodities) from e-waste

Our companies exploring for antimony include:

• RML - next door to Perpetua Resources, the only antimony resource in the US
• SS1 - undertaking a large-scale re-assay program for antimony at its giant 480 million ounce silver equivalent project in the US
• TG1 - just completed geophysics over one of its WA listing assets that was prospective for antimony with electromagnetic targets identified.

Caution should be exercised in assessing the prospects of these companies.

Just because there is an increase in global defence spending or critical minerals, doesn’t gaurantee that any of this benefit will flow to these specific small cap companies.

Small caps stocks, like all other financial products, are subject to market forces and unpredictable events that may adversely affect future performance

Silver Stories from Sierra Madre | Simon Catt x John Skeet

Listen to Mithril Silver & Gold (ASX:MTH) managing director John Skeet and Arlington Group’s Simon Catt discuss the company’s Mexican silver project in the link above.

Here is the direct quote from Simon where he recalls when Colin Jones (technical advisor to the project) saying:

“The worst-case scenario is... two or three million ounces. That was the downside. And he said maybe it could be a Fruta del Norte... 13 or 14 million ounces at 7 g [on the upside]”

12 Day War, Socialism Wins in NYC, Stocks All-Time High, AI Copyright, Science Corner (All In Podcast)

This week on the all in podcast in the Science Corner segment renowned biotech investor David Friedburg talks about the power of exosomes in de-aging technology (around the 1 hour and 8 minute mark).

Our early stage biotech investment Inoviq (ASX:IIQ) is developing various exosome technologies for cancer diagnosis and cancer therapy.

(they haven’t quite tested for de-aging just yet).

But what IIQ does have - if exosomes become the next frontier of biotech advancement - is a product which is currently used in the market called ExoNet, which captures exosomes.

Exosomes are tiny messengers between cells and almost 1/200th of the size of a cell (so are incredibly hard to develop technologies for).

This is where IIQ’s tech helps.

So, if this new exosome de-aging technology takes off, we expect there to be increased interest in IIQ’s exosome capture technology.

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.