LYN Announces Heritage Survey announced for West Arunta
Yesterday, our micro cap exploration Investment Lycaon Resources (ASX: LYN) announced their Aboriginal Heritage Survey has been scheduled at West Arunta for July 11, 2024.
The heritage survey will clear priority drill sites, areas for ground gravity surveys, and proposed access tracks into the project area.
Ground gravity surveys and drilling are then targeted to begin in Q3 2024, subject to approvals after the heritage survey.
More on LYN’s Stansmore Project
The Stansmore Project covers 173 sq km and contains several high-priority magnetic anomaly targets prospective for niobium-REE carbonatite or iron oxide copper gold (IOCG) deposits
Targets include the prominent 700m long Stansmore magnetic anomaly and the larger 3 km wide Volt anomaly, modelled from geophysical data
Two initial proposed drill holes have been designed to test the central peaks of these anomalies, with plans for 5 additional holes across the main targets
LYN received a $180,000 govt grant to drill test two of the proposed holes once approvals are in place
Why does this matter for LYN?
This announcement marks an important step forward as LYN advances towards its goal of drill testing the prominent geophysical targets at Stansmore.
One of the key reasons we invested was the similarity of these targets to the magnetic anomaly that led to WA1 Resources' recent rare earths discovery in the same region.
With a tight capital structure and relatively low ~$12M market cap, we think Lycaon offers leverage to any exploration success.
Confirmation of mineralization associated with the geophysical anomalies could be a significant catalyst for a re-rate.
How does this news impact our LYN Investment Memo?
As it has taken LYN a long time to get to this point, LYN is currently capped at ~$12M which means one of the key reasons we Invested in the company remains relevant:
Relatively low market cap leveraged to exploration success
We also see this scheduled heritage survey as advancing LYN closer to Objective #2:
Objective #2: Drilling at its niobium & rare earths project in WA.
We want to see LYN get on the ground and drill its project in the West Arunta region.
Finally, in terms of risk we see this as impacting the following:
Exploration risk
LYN is yet to make an economic discovery, with all of its projects considered early stage prospects. Inherently there is a risk that future drilling programs return nothing and LYN’s projects are considered stranded. There is plenty of time before drilling starts in 2023 - so there could be periods of share price weakness prior to drilling.
As drilling gets closer, there is always the chance that economic assays are not returned.
Click here to read our LYN Investment Memo in full
What’s next for LYN?
With the Heritage Surveys scheduled, we can expect to see the following from LYN:
Read more about LYN in our latest note:
LYN drilling targets mid-year next to WA1's West Arunta discovery
