Sunday Edition: 9th November

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.

Happy Sunday...

Below is a summary and links for everything we wrote about last week, along with some other interesting content we found in relation to our Portfolio.

Quick Takes: TG1, MAN, LKY, WCE, AVM, PNN, PFE, JBY, CND, SGQ, SS1, HAR, CAY.

Deep Dives: LKY, RML, MTH, LSR, EMD.

In yesterday’s Saturday edition we wrote about:

• How the US critical minerals macro thematic is still very strong (despite market sentiment softening),
• Our “playbook” for small ASX stocks advancing US critical minerals projects - we even made it into a checklist - so you can assess how far advanced companies are in our playbook,
• Silver being added to the US critical minerals list, and;
• How we are looking at oil & gas stocks as value plays to add to our Portfolio.

Read the Saturday edition in full here: ASX Sentiment Turns Bearish, But the US Critical Minerals Story Stays Bullish

We have been talking a lot about the accelerating race between the US and China to be the leading global superpower...

... and how the winner in technology, AI and the mass manufacturing of autonomous AI war robots and drones will ultimately be the new global power.

(and how many critical military minerals the US is going to need to even just stay in this race - especially for the “mass manufacturing” part, and especially from a near zero start)

Here is an interesting 15 minute video we watched of Palmer Luckey, founder of US defence technology company Anduril, who talks about the future of warfare and deterrence, and what the US needs to do.

(we bet that watching a guy with a mullet, in thongs and a Hawaiian shirt, giving a TED talk on how the USA will need millions of autonomous AI war robots to stop World War 3 happening wasn’t on your 2025 bingo card)

(watch it here)

Anyway, let's get stuck into everything else we covered last week.

TG1 picked up new gold exploration ground in WA next to $6BN gold producer Ramelius Resources.

Once the exploration licenses are granted, microcap TG1 will be the second largest landholder in that region (second only to Ramelius). TG1’s license applications are only ~8km from Ramelius’ Dalgaranga plant, which was once tied to Spartan Resources’ $2.5BN turnaround story.

MAN signed a non-binding letter of intent (LOI) for offtake from its US lithium project.

MAN’s deal is with NASDAQ-listed Stardust Power who are planning to build a lithium refinery in Oklahoma. If the offtake becomes binding, it would secure a buyer for lithium from MAN’s project for an initial 12 years.

LKY signed a Memorandum of Understanding (MOU) with a processing partner for its US antimony project.

LKY’s deal is with Hazen Research, the same group that was responsible for producing LKY’s recent 100% American made antimony ingot. Given the pre existing working relationship, hopefully LKY and Hazen can scale up their processing capacity fairly quickly.

More on LKY below in the Deep Dives section.

WCE completed an initial five holes of its phase 2 drill program on its Elizabeth Hill silver project in WA.

WCE had visual native silver in all five holes - here’s one example:

(Source)

Now wait to see what comes from WCE’s assay results. A ~1,300m diamond drilling campaign continues and is expected to conclude mid-November.

AVM confirmed high grade silver in more than 6,300m of previously unsampled drill cores at one of its Yoquivo project in Mexico.

This was more than 50% of historic drilling completed to date, and was an easy (and cost effective) win for AVM to hopefully add to the 17.2 million ounce foreign resource estimate on the project. AVM is going for a resource upgrade and conversion to JORC status on the project in Q1 next year. A diamond drill rig is also on the way for drilling re-start too.

Later in the week, AVM brought a second diamond rig onto its Victorian exploration asset.

That was quick - only 8 days after hitting visual gold in the deepest ever hole drilled on the project.

If drilling from that second rig comes in and AVM makes additional discoveries parallel to its current target then the market could start drawing comparisons to $1.1BN Southern Cross Gold.

PNN completed a sampling program at its US rare earths project.

This is the first sampling program PNN’s done on the program - spot rock and stream sediment sampling was conducted. Fingers crossed the results (due next month) confirm (or improve on) the previous samples which showed the project had heavy rare earth potential. See more on what we are looking for in our PNN Investment in our heavy rare earth commentary from yesterday.

PFE provided an update on the value of its US lithium asset sale to US based private company EnergyX.

PFE acquired A$34M in EnergyX stock at US9.50 per share in exchange for its Arkansas lithium ground. EnergyX priced their recent capital raise in a range between US$10 to US$11... so PFE’s EnergyX stock could be worth ~A$39.75M at the most recent capital raise price.

PFE is currently capped at just ~$11M (and it still has a US silver-antimony asset).

JBY hit more gold below the shallow section of its 1.37M ounce gold JORC resource estimate in Nevada, USA.

Now there is gold in just about every direction, outside of the current resource footprint - the resource upgrade on that shallow resource will be an interesting one.

Later in the announcement JBY mentioned road access to the highest priority target area was finished and drilling would start very soon where rock chips had gold grades up to 16.6g/t.

CND signed a Memorandum of Understanding (MOU) on its 1 trillion cubic feet Piedra Redonda gas field offshore in Peru with leading local gas distributor Promigas Peru.

Promigas Peru will assess gas supply options from CND and assist in the evaluation of midstream and downstream opportunities.

Promigas Peru’s parent company Promigas supplies natural gas to 38% of the Columbian market and 94% of the market in Peru.

So effectively CND now has a giant gas distributor discussing potential offtakes from its project... The agreement this week provides the foundation for future monetisation pathways for CND.

SGQ settled all outstanding payments for its rare earth-niobium project in Brazil, ahead of schedule.

Fresh from a A$72.5M equity raising, SGQ now owns the largest and highest-grade carbonatite-hosted rare earth deposit in South America and second highest grade deposit in the Western world...

100% outright.

Oh and they are drilling with multiple rigs 24/7 - so the resource could get bigger pretty soon.

SS1 sampled antimony near surface inside its giant silver resource in Nevada, USA.

Hopefully that means the maiden antimony resource SS1 is working toward is getting bigger. That would make SS1’s a dual critical mineral exposure inside US borders after the US added silver to its critical minerals list.

Dual exposure could mean two shots at goal at attracting government funding/permitting support (and maybe more buying in SS1’s new US listing on the OTCQX.)

HAR kicked off a follow up drilling program on its gold project in Senegal.

HAR is following up its recent results which took HAR’s share price to a high of 20c and got the company to lock away a $14M capital raise.

If the second phase of aircore drilling delivers, then its all eyes on the deeper RC/Diamond drilling program HAR has already started planning for next year.

CAY put out a development update for its 1.1B tonne bauxite project in Cameroon.

This week CAY acknowledged some civil unrest post the recent election in Cameroon, but said that development was largely unimpacted and that the project was still on track for first production in Q1 2026, with first shipments in Q2 2026.

The incumbent president (who won the election) has been there since 1982 - so that could mean everything simmers down fairly quickly.

Locksley Resources (ASX:LKY)

LKY announced US$191M in potential financing support from the US Export-Import Bank (EXIM).

(Source)

The US Export-Import Bank is the official credit agency of the USA and currently has a mandate to finance projects to reduce US dependency on critical minerals coming out of China.

A big part of EXIM’s mandate is to help bring projects into production that can deliver critical raw materials into US industries.

As far as we know, LKY is the smallest company (by market cap) to have received EXIM support for a US critical minerals project.

The EXIM funding is intended for the development of LKY’s antimony and/or rare earths project in California, USA.

(the main two US critical minerals that China has been leveraging again the USA)

The next steps for LKY to unlock the funding is to progress the formal application (which triggers further DD) and also secure further funding support (for example from the US Government, US Department of War or institutional support).

LKY management says they will be in Washington in a couple of weeks to advance discussions.

Read more: US $191M funding from US Export Import Bank: LKY receives “Letter of Interest”

Resolution Minerals (ASX:RML)

RML followed up its giant gold discovery hole... with another giant extensional hit.

7 days prior RML announced a 189.2m @ 1.3 g/tonne discovery hole at its Horse Heaven project in Idaho.

Then this week RML announced 253.0m @ 1.5 g/tonne and 265.2m @ 0.60 g/tonne hits.

Those first three holes are now showing us RML’s discovery extends over at least ~75m and is open at depth.

7 drill hole results are still pending, and should be released by RML sequentially over the coming weeks.

IF RML delivers another one or two big drill results out of the upcoming assays - it will give the market an idea of the potential scale of just what RML could have found.

(the “post-discovery” drilling out around a discovery hole to figure out the size and extent of a new resource deposit is the most exciting AND terrifying part of moving out of “exploration” stage to “definition” stage)

(Source)

RML’s working theory had been that its project could host a similar style gold system to the one that hosts $4.5BN Perpetua Resources 6M oz gold ~200M lb antimony resource estimate.

The drill bit is now starting to prove this theory.

Read more: Three holes now in RML’s new gold discovery - 7 assays pending in the coming weeks

Mithril Silver and Gold (ASX:MTH)

MTH hit silver and gold in one of its exploration target areas (target 5).

MTH’s land area is enormous (70 square kilometers), and it’s dotted with hundreds of historical mines, surface workings and pits.

MTH’s theory is that it could all be part of one giant, high grade silver and gold system - but on a land area so big it's going to take some drilling to properly define.

According to a recent interview with MTH MD John Skeet and Technical Advisor Colin Jones, we will know the answer within the next 14 months. (source)

And according to John, “The worst case scenario is 2.5M ounces of gold equivalent”. (source)

MTH held $18.3M cash at the end of last quarter so is well funded to do this work.

40% of MTH shares are now held by global institutions, so it's got the right kind of long term backing to see this through.

MTH has two rigs on site right now and a third drill rig is arriving early next year to expedite all the drilling.

Mapping and sampling has defined continuous mineralisation stretching 9km across the southern half of the project, and 1,300m vertically.

(Source)

The little orange and black dots inside each Target Area are historical mines, adits and pits - that red line we drew above shows 2km distance.

To date, only 5% of the mapped project area has been drilled - and with that data, MTH has already defined a 373k ounce gold, 11M ounces of silver JORC resource estimate for the project.

(which is 529k ounces of gold equivalent)

Read more: MTH: How to find a giant, high grade silver and gold system

Lodestar Minerals (ASX:LSR)

LSR appointed ex-MP Materials and ex-Lynas technical leaders to its team.

A$15BN capped MP Materials and A$13.5BN capped Lynas are the two major rare earths mining and processing companies outside of China supplying global technology markets.

LSR owns an option on a heavy rare earths exploration project in Arizona, USA.

(Source)

Heavy rare earths are critical inputs into the key AI and military technologies that will likely determine the next global superpower/s:

• Artificial Intelligence (AI)
• AI-driven defence
• Autonomous war robots and drones
• Quantum computing, and
• Advanced energy technologies.

We think the long term trajectory has been set and it's for a building out of the domestic rare earths supply chain inside the US.

We note the recent Trump-Xi “12 month truce” where a temporary “cease fire” of sorts was agreed on various export controls, including rare earths.

For us, we don’t think the 12 month truce will slow the USA down at all in urgently rebuilding its domestic critical minerals supply.

Read more: LSR: Appoints ex-MP Materials and ex-Lynas technical leaders to its USA Heavy Rare Earths Project

Emyria (ASX:EMD)

EMD is the first company in the world to own and operate private clinics offering psychedelics to treat mental health issues.

A major part of EMD’s strategy is to secure “payers” for the treatment - convince institutions (e.g. insurance and/or government organisations) to fund the treatment for patients who need it.

Back in June, Medibank, the biggest private health insurer in Australia, announced a “payer agreement” with EMD, to fully fund EMD’s treatment for its eligible members.

And this last week we noticed a new “payer” has emerged...

The Department of Veteran Affairs announced that it would fully fund psychedelic treatment for eligible veterans for Treatment Resistant Depression and PTSD.

(Source)

BEFORE, for veterans to access EMD's services they would need to pay out-of-pocket themselves, and then attempt to seek reimbursement by directly negotiating with the Department of Veteran Affairs, and with an uncertain outcome to risk personally stumping up $30k...

NOW, the Department of Veteran Affairs has provided a pathway for those veterans to access this care without paying out-of-pocket and risk not being reimbursed.

This week, the Australian Minister for Veteran Affairs, Matt Keogh, visited EMD’s Empax centre in Perth - highlighting EMD’s role in providing care for veterans.

(Source)

Last year alone the Department of Veteran Affairs spent $300M on veteran mental health.

So it makes sense why they are now funding this type of care.

Read more: EMD: Psychedelics to treat mental health - yep, it’s happening. Dept of Veteran Affairs now paying for treatments.

FT - US Officials are exploring Global Dollarisation to Strengthen Greenback, eying Argentina amid Peso crisis and China’s push to reduce dollar use in emerging markets.

Bloomberg - Cambodia set to store China’s gold, advancing Beijing’s plan to challenge western bullion hubs and build a dollar-independent global financial system.

Bloomberg - Vietnam’s gold rush is on, with soaring prices sparking long queues as locals scramble for wedding gifts, wealth hoarding and navigating new post-monopoly rules.

FT - It’s now official, the US labels silver as a “critical mineral” signaling potential tariffs, federal support, and supply-chain prioritisation that could shake global markets.

AFR - Spodumene (the type of lithium mined from hard rock deposits) prices are up ~21% over the past fortnight to $US977 a tonne... forcing hedge funds that were positioned short the lithium sector to cover their shorts...

AFR - Geologist-turned-fund-manager Rick Squire leverages deep mining expertise to exploit ASX resource stocks including rare earths, delivering outsized returns through savvy early-stage picks. Some good ASX small cap portfolio construction ideas in this one.

Bloomberg - US Commerce and Pentagon back domestic rare-earth magnet producers with $1.2B in funding, aiming to challenge China’s dominance and secure critical supply chains for defense and industry

Bloomberg - Australia’s Gina Rinehart rides rare-earths boom, building a $1.8B portfolio outside China and positioning herself as a key player in the US-Australia critical minerals race.

Rare earths - MP Materials released its Q3 results - interestingly, there was a lot of chatter about sourcing of heavy rare earth feedstocks in the Q&A section of the earnings call.

AFR - African iron ore is surging as high-grade Gabonese deposits like GEN’s Baniaka project could outpace WA giants while also keeping costs low.

This one's a hell of a read... an in depth look at Rio Tinto’s Simandou iron ore project in Guinea as well as Fortescue's iron ore project in Gabon.

AFR - Resources are rebounding: gold, lithium, copper, iron ore, and rare earths surge as sentiment shifts and Australia’s undervalued sector may offer first-mover gains.

Emyria (ASX:EMD) - Initiation of Coverage: A Mind Altering Opportunity (Euroz Hartleys)

Emyria (ASX:EMD) - Department of Veteran Affairs to Commence Funding Psychedelic-Assisted Therapy (Euroz Hartleys)

Two weeks ago Euroz Hartleys initiated coverage on EMD, and the analyst quickly updated its price target this week on the back of the Department of Veteran Affairs news.

St George Mining (ASX: SGQ) - Drilling Success: This Is Getting Big! (MST Access)

We don't often see exclamation marks in analyst research report titles, so they must be bullish (not investment advice).

AML3D (ASX:AL3): Technology Facility in Adelaide, South Australia in October 2025

Leadership Talks with Kaiser Reef (ASX: KAU) Managing Director Brad Valiukas

Kerrie Matthews on Joining Locksley Resources (ASX: LKY) | Building a U.S. Mine-to-Market Future

Locksley Strategy Update: Mine to Market Antimony Pathway | Nathan Lude & Jane Morgan

Exploration Opportunity in Silver: Mithril Silver (ASX: MTH | TSXV: MSG) CEO on 2025 Outlook

How Two Oil Tycoon Bought Too Much Silver & Broke America (Almost)

And a special mention for this week (it isn’t a video, but we wanted to get this one in here)...

BPM Minerals (ASX: BPM) Technical Advisor and Exploration Manager Luke Blais was on site recently

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.