LYN starts Ground Gravity Survey - drilling in June

Published 08-MAY-2023 15:00 P.M.

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Our early stage exploration Investment, Lycaon Resources (ASX:LYN), launched a ground gravity survey at its Nickel Copper Project in the Western Australia.

The ground gravity survey follows up on a previous Helicopter Electromagnetic survey at the LYN’s nearby Gnewing Bore project (see all of LYN’s projects below):

Historical drill hits at the Bow River project look quite promising:

10m @ 1.1% Cu, 0.5% Ni (DDH107)
11.5m @ 1.2% Cu, 0.5% Ni (DDH103)
3m @ 0.97% Cu, 1.3% Ni (DDH102)

In order to follow up on these hits and potentially prove that the mineralisation here extends at depth (>150m) LYN has started a ground gravity survey at the project.

Drilling is planned for June of this year, pending heritage and flora surveys.

We think that if LYN can build on existing historical drill results in a meaningful way - there could be scope for LYN to re-rate given it has a current market cap of ~$5.1M, a cash balance of $2.7M as of 31 March, which leaves it with a low EV of ~$2.4M.

Below is a map outlining the 6km gravity anomaly that LYN is seeking to get a greater understanding of with the survey announced today:

LYN drew parallels with the anomaly and the anomaly that gave rise to Panoramic’s 13Mt @ 1.56% Ni Savannah Mine which lies ~60km south of the Bow River project.

LYN is building on Panoramic's success drilling deeper at its Savannah mine - after drilling deep lying EM conductors Panoramic made the Savannah North discovery in 2014.

For context on the discovery - Savannah North ended up being 4x bigger than the initial Savannah discovery.

In short, the Savannah project blossomed as a whole when Panoramic discovered that there was more mineralisation at depth at Savannah North.

What’s next for LYN?

After a significant quiet period since our Initial Investment in November of last year, we’re looking forward to this drilling program in June.

Also of note, is LYN’s Stansmore Carbonatite Project in the West Arunta region, last year WA1 Resources surged ~2,300% after making a niobium and rare earths discovery with a similar looking EM anomaly to the one LYN has in the West Arunta region, that was subsequently successful drill tested.

Plenty of activity to look forward to from LYN in 2023.