LYN: A look at the coming field season

Published 17-MAR-2023 14:52 P.M.

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Lycaon Resources (ASX:LYN) today provided an update on its planned exploration activities across its portfolio of WA exploration projects.

We’re Invested in LYN to see it make a discovery and for the coming field season, LYN has narrowed in on the following three project areas:

The Bow River nickel-copper sulphide prospect,
Stansmore niobium-rare earth elements (Nb-REE) and
The Gnewing Bore polymetallic prospect

With possibly three drilling programs to commence in the coming field season, we note that LYN is currently trading at a particularly low valuation.

Its share price is now at record lows of around 18.5c and the company has a market capitalisation of just $6.83M.

LYN has $2.85M in cash (as at 31 December), and we note that the company has an enterprise value of less than $4M.

The company has a healthy portfolio of early stage projects, including one with an intriguing WA1 Resources “look-alike” EM anomaly, here’s a quick rundown on what to expect from the three projects…

Bow River

LYN’s primary focus is the main target at the Bow River project in the East Kimberley region, which the company intends to drill after the wet season ends in May.

LYN has planned two deep drill holes to intersect the highest density gravity anomaly at the Bow River intrusion. This has been assessed to have the greatest likelihood of hosting nickel-copper sulphide mineralisation analogous to the nearbySavannah mine 60km to the south, which is owned by the ~$266M capped Panoramic Resources.

LYN is now working through access and approvals ahead of the planned drilling.

Gnewing Bore

LYN is also now working through the approvals processes required to enable the drilling of the Gnewing Bore prospect, a hydrothermal/epithermal gold-silver target. It expects to commence drilling in mid-2023.

The company intends to conduct an RC drilling program designed to test the 50m long, gossanous outcrop consisting of brecciated quartz material and iron oxides after sulphides,

While historical work points to high grade gold along with silver and copper potential, a lack of decent exploration work has been completed to sufficiently test the target’s potential.

Stansmore

The Stansmore Nb-REE project is in WA’s West Arunta region, a region, which is quickly becoming a significant rare earths and copper province.

The Stansmore carbonatite target consists of a regionally prominent 700m long magnetic feature analogous to WA1’s discoveries and Encounter’s Worsley prospect.

LYN is also now working through the approvals processes required to drill this prospect.