Resource Base Limited reports a solid cash position of $1.06 million and ongoing lithium exploration progress at its Wali and Ernst Lake projects in Quebec, alongside rare earth element developments in Australia.
- Cash reserves of $1.06 million as of December 31, 2024
- Placement raised $975,000 during the December quarter
- Exploration at Wali Project reveals promising lithium and gold anomalies
- Ernst Lake Project strategically located near recent lithium discoveries
- Mitre Hill REE Project shows potential for significant rare earth mineralisation
Financial Position and Capital Raising
Resource Base Limited (ASX: RBX) closed the December 2024 quarter with a cash balance of $1.06 million, bolstered by a successful placement that raised $975,000 before costs. This capital injection provides the company with an estimated 5.6 quarters of funding at current expenditure rates, underpinning ongoing exploration and corporate activities.
Wali Lithium Project: Geological Insights and Exploration Progress
The Wali Lithium Project, situated in the James Bay region of Quebec, encompasses 100 mineral claims over 51.12 square kilometres. Geologically positioned within the LaGrande sub-province of the Superior Province, the project benefits from proximity to Patriot Battery Metals’ Corvette prospect and lies along a volcanic belt hosting lithium pegmatite source rocks of the Vieux Comptoir Granitic Suite.
Exploration programs in 2023 and 2024 have identified a 1.2 km2 prospective zone with multiple pegmatitic outcrops yielding anomalous lithium in weathered rock chips. Soil sampling returned peak lithium grades of 20 ppm and notable gold anomalies up to 436 ppb within a fold hinge of the Guyer Formation greenstone, coinciding with a magnetic feature previously identified. These geochemical signatures suggest potential for mineralisation that warrants further investigation.
Ernst Lake Lithium Project: Strategic Location and Potential
Resource Base’s Ernst Lake Project covers 109 mineral claims totaling 56.31 square kilometres, located just 13 kilometres south of Winsome Resources’ Adina lithium discovery. Positioned along the Trieste formation within the same greenstone belt, Ernst Lake offers over 10 kilometres of strike prospective for lithium mineralisation. This adjacency to recent discoveries enhances the project’s strategic value and exploration appeal.
Mitre Hill Rare Earth Elements Project: Emerging Potential
In Australia, the Mitre Hill Project straddles the South Australia/Victoria border within the Murray Basin, a region the company believes could evolve into a globally significant rare earth element (REE) precinct. The maiden JORC Inferred Mineral Resource estimate stands at 21 million tonnes at 767 ppm total rare earth oxides (TREO), highlighting thick near-surface mineralisation. Although no drilling occurred during the quarter, previous aircore drilling suggests substantial upside potential as exploration continues.
Corporate and Operational Overview
The company’s December quarter exploration expenditure was modest at approximately $21,000, reflecting a focused approach to advancing key projects. Payments to related parties, including directors’ fees and superannuation, amounted to $68,000. The Annual General Meeting held in November 2024 saw all resolutions passed by poll, indicating stable governance.
Resource Base’s strategic positioning in lithium and rare earth elements markets, combined with its strengthened financial footing, sets the stage for potential growth as exploration results mature and new opportunities are evaluated.
Bottom Line?
With a solid cash buffer and promising early exploration results, Resource Base is poised to deepen its footprint in the competitive lithium and rare earth sectors.
Questions in the middle?
- Will further drilling at Wali confirm economically viable lithium and gold mineralisation?
- How will Resource Base prioritise development between its lithium projects and the Mitre Hill REE asset?
- What partnerships or funding strategies might the company pursue to accelerate exploration and resource definition?