Lycaon Resources completes its first drilling program at the Stansmore Nb-REE target, revealing modest mineralization, while reinforcing its leadership with key board appointments and planned capital injections.
- Maiden drill program completed at Stansmore Nb-REE target with assay results received
- Best intercept: 1m at 425ppm Nb+Nd+Pr and 217ppm Y+Yb from 302m depth
- No further drilling planned at Stansmore following assessment of results
- Board strengthened by appointment of mining veteran Tony Rovira and director investments totalling $450,000
- Ongoing evaluation of additional geophysical targets and new project opportunities
Exploration Progress at Stansmore
Lycaon Resources Limited (ASX: LYN) has reported the completion of its maiden drilling campaign at the Stansmore Niobium-Rare Earth Elements (Nb-REE) target within the West Arunta Project. The single reverse circulation drillhole, STRC01, reached a depth of 324 metres, targeting a prominent 500m diameter magnetic anomaly considered analogous to mineralised carbonatite systems recently discovered by peers in the region.
Assay results, received after the quarter ended, revealed a best intercept of 1 metre grading 425ppm combined niobium and rare earth elements (Nb+Nd+Pr) and 217ppm yttrium and ytterbium (Y+Yb) at 302 metres depth. This zone was associated with sulphide mineralisation but was interpreted as shear-related and not indicative of significant carbonatite mineralisation. Consequently, Lycaon has decided not to pursue further drilling at this target for the time being.
Strategic Board and Capital Developments
In a notable corporate development, Lycaon strengthened its leadership team with the appointment of Tony Rovira as a Non-Executive Director effective January 1, 2025. Mr Rovira brings over four decades of mining industry experience, including a pivotal role in the discovery of the Andover Lithium Deposit and involvement in a landmark $1.7 billion takeover. His appointment signals a strategic push to leverage seasoned expertise in advancing Lycaon's projects.
Alongside Mr Rovira's appointment, fellow directors James Robinson and Mark Di Menna have committed to investing alongside him, collectively injecting $450,000 into the company via a placement at $0.09 per share. These placements are subject to shareholder approval at the upcoming general meeting scheduled for February 27, 2025. Additionally, the company proposes to issue 4 million options to directors as part of remuneration incentives, also pending shareholder consent.
Broader Project and Exploration Outlook
Beyond Stansmore, Lycaon continues to assess other geophysical targets within the West Arunta Project, maintaining a watchful eye on the region’s potential for carbonatite-hosted Nb-REE and intrusion-related gold-copper mineralisation. The company also holds interests in the Bow River Project in East Kimberley and the Myrnas Hill prospect in the Pilbara, with exploration activities planned to ramp up following tenement grants.
Financially, Lycaon reported exploration and evaluation expenditure of $135,000 for the quarter, with a healthy cash position of $4.03 million at period end, providing a runway of approximately 18 quarters at current burn rates. The company’s disciplined capital management and strategic board enhancements position it well for the next phase of exploration and potential value creation.
Looking Ahead
While the maiden drilling at Stansmore did not yield a breakthrough discovery, the results contribute valuable geological insights and help refine future exploration targets. The injection of experienced leadership and director investment underscores confidence in Lycaon’s broader strategy. Market participants will be watching closely as the company advances its portfolio and awaits shareholder decisions on the proposed capital raising and incentive schemes.
Bottom Line?
Lycaon’s maiden drilling sets a foundation, but the real test lies in leveraging new leadership and capital to unlock West Arunta’s potential.
Questions in the middle?
- Will further drilling at other West Arunta targets reveal economically viable Nb-REE mineralisation?
- How will the new board composition influence Lycaon’s strategic direction and project prioritisation?
- What are the implications of the proposed share placements and options for existing shareholders?