ASX:RML

- Resolution Minerals Ltd

RML has exposure to three of our current favourite macro themes.

Critical/defence minerals (antimony and tungsten), precious metals (gold and silver) and USA based resource projects.

RML’s project has a non-JORC historical gold resource of ~286k ounces.

RML’s project produced Antimony in the early 1920s and Tungsten between 1971 and 1985.

The project has been drilled several times over the last few decades but none of the modern exploration assayed for antimony or tungsten.

Rock chip sampling on site is showing RML’s project could host gold-silver-antimony and tungsten mineralisation.

Perpetua has received almost $2BN in funding support from the US government and is building a high grade, low cost gold mine which will also be the biggest producer of antimony in the USA.

Perpetua’s project will be the only source of antimony production in the USA and will be producing over 450k ounces of gold per annum.

Perpetua is up by over 1,000% over the last 24 months and RML is right next door.

RML’s exploration theory is based around its project being part of an "Intrusion Related Gold System” (sometimes referred to as an IRGS).

RML’s theory is that whatever source structure generated Perpetua’s resource, could also be pushing out mineralisation into RML’s ground.

Over the last 8 weeks, Dateline Resources (DTR) has run by over 5,000%, Trigg Minerals has run by ~300%, and Locksley Resources (LKY) is up more than 600%.

Concerns over Chinese export bans and the Trump administration loosening permitting handbrakes have meant ASX investors are more willing to buy into US based critical minerals projects.

The market is currently rewarding US based critical metals projects - RML could also attract this capital inflow to fund progress at its project.

Right now, about 85% of antimony supply comes from China, Russia and Tajikistan.

China is the biggest supplier at ~55% of global supply... and ~6 months ago it threatened export controls on antimony supply which sparked a rally to new all time highs.

China also dominates ~80% of the global tungsten market and perceived supply risk has taken tungsten prices to 12 year highs

Gold is currently trading near all time highs and is up ~100% over the last 12 months.

Silver is also breaking out above 14 year highs AND it looks like it wants to run to new all time highs.

RML already has drilling permits granted and can start drilling straight away.

Drill permits in the US can take months to get and can mean investor attention starts to move away from a company because of the long lead times.

RML wont have any of this and can start drilling immediately.

There are a number of Executive Orders that Trump has released since being in office that have encouraged domestic production of critical minerals.

Including, the Immediate Measures to Increase American Mineral Production, and nominating a number of projects for the FAST-41 program.

This program improves the timeliness and transparency of federal environmental reviews for infrastructure projects.

Although RML’s project is still at the exploration stage, if the company can define a meaningful resource, then larger investors who are interested in building a mine will know that there is an expedited pathway through to development.

Next door neighbour Perpetua Resources has received commitments from the US government for almost US$2BN to get its projects online.

We think there is a chance RML receives US government support for its project.

We looked at the buyout terms the vendors paid to the previous owners of this project and saw that there was a milestone payment tied to government funding support >US$5M. Clearly this was something the old owners thought was possible...