LYN completes heritage surveys in the West Arunta

Published 22-JUL-2024 12:34 P.M.

2 min read

Shares Held: 1,705,914

Options Held: 300,000

Our West Arunta exploration Investment Lycaon Resources (ASX: LYN) just completed a key permitting milestone on its project.

This morning LYN announced that heritage surveys had been complete - a clear permitting milestone for drilling which is planned for later this quarter.

LYN has $$4.6M cash in the bank (at 30 June 2024) and up to $180K in co-funding from the WA government to fund its drill program - which we think is coming at the perfect time.

West Arunta peer WA1 Resources recently hit a ~$1.2BN market cap & Encounter Resources has rallied to ~$400M market cap after its own discovery.

LYN is currently capped at $17M which we think leaves plenty of upside IF the company is able to make a discovery of its own.

LYN set to drill similar geophysical targets to WA1 and Encounter

LYN’s plan is similar to the two West Arunta majors WA1 Resources and Encounter Resources.

LYN has a set of geophysical anomalies that it plans to drill in the coming months.

Here is a side-by-side of LYN’s drill targets compared to WA1 Resources (pre-discovery):

LYN has also spent the last nine months refining the targets to better plan its drill program.

These are the set of anomalies that LYN is set to drill:

We are Invested in LYN to hopefully see the company replicate the success of its West Arunta neighbours - which forms the basis for our Big Bet as follows:

Our LYN “Big Bet”:

“LYN’s share price re-rates by over 1,000% off the back of a new discovery and the definition of a deposit significant enough to move into development studies”

NOTE: our “Big Bet” is what we HOPE the ultimate success scenario looks like for this particular Investment over the long term (3+ years). There is a lot of work to be done, many risks involved - just some of which we list in our LYN Investment Memo . Success will require a significant amount of luck. There is no guarantee that our Big Bet will ever come true.

How today’s news relates to our LYN Investment Memo:

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.

Milestones
🔲 Commence drilling
🔲 Assay results

Source: “What do we expect LYN to deliver” Section - LYN Investment Memo 30 Nov 2022.

Today’s news is a key milestone for LYN to start drilling its project.

Sometimes heritage clearance and land access delays can mean drill programs are delayed by months (and sometimes years).

We think LYN’s heritage clearance comes at a good time given the interest in the West Arunta explorers of late.