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Highlights
Cobalt Blue produced 125 tonnes concentrate using a High-Pressure Grinding roll
Hammer Metals discovered pegmatites and lithium-bearing rock chips at the Yandal Project
GME is expecting the results of its sonic metallurgical program by the first quarter of 2023
Batteries play a vital role in several applications like consumer electronics and electric vehicles. The metals used as raw materials for manufacturing batteries are lithium, nickel, aluminium, manganese, tin, cobalt, etc.
The use of lithium-ion batteries is on the rise as the world makes efforts to lower carbon emissions. The current transition from fossil fuels will likely lead to shortages of battery metals used in electric vehicles. Geopolitical situations can also affect supply chains globally.
As per reports from the International Energy Agency (IEA), an electric car contains an average of 8.9 kg lithium and 39.9 kg nickel.
For the global adaptation of clean energy, battery metals can be considered the new oil. A step towards energy independence will require investing and building a domestic battery supply chain.
Several battery metal stocks are listed on the Australian Stock Exchange (ASX). Here, let us analyse the performance of the penny stocks with outstanding annual returns:
Data: ASX as of 7 December 2022
Cobalt Blue Holdings Ltd. (ASX:COB)
Cobalt Blue Holdings is a mining and mineral exploration company focused on advancing and developing cobalt mining operations in Australia. The company is committed to its Broken Hill Cobalt Project and trying to emerge as a premier producer of ethical cobalt globally. The targeted project life of Broken Hill is more than 20 years.
Recently, Cobalt Blue released a quarterly activity report. The report highlighted Broken Hill Cobalt Project (BHCP) updates, cobalt market trends, and cobalt in the waste streams project.
During the quarter, the company initiated concentrator work at its Demonstration Plant, BHCP. A total of 125 tonnes concentrate has been produced from 500 tonnes ore, with an average grade of gravity circuit concentrate at 4360 ppm cobalt. Ball mill will be used to prepare the finer feed material.
The demonstration plant has processed five tonnes of concentrate, and work is ongoing to improve off-gas handling to recover sulphur.
The company also completed the testing of the first sample from the Queensland Department of Resources regarding cobalt in waste streams.
Hammer Metals Ltd. (ASX:HMX)
Mineral exploration company Hammer Metals is currently developing two projects- Mount Isa and Bronzewing South Gold. The company deals with lithium, gold, copper and zinc exploration. Hammer Metals has a 2000 km2 tenement holding in Mt. Isa, considered one of the world’s largest base metal provinces.
The company announced the discovery of pegmatites and lithium-bearing rock chips at the Yandal project with an initial outcropping strike length of 200 metres. The Tapenade prospect has rock chips containing up to 0.65% lithium oxide.
The sampling was also conducted to check lithium, gold, nickel and rare earth anomalies. Preliminary portable XRF analyses of Kathleen Valley granite was done, and it was concluded that large intrusive complexes could produce lithium-caesium-tantalum (LCT) pegmatites.
Hammer Metals has also received the final assay results of the South Hope prospect, Mt Isa project. The results confirmed a wide zone of high-grade copper sulphide mineralisation. The first Reverse Circulation program was also concluded by drilling 11 holes across six discrete prospects.
The off-hole conductors at the South Hope prospect detected down-hole electromagnetic (DHEM) anomalies. The assay results of the New North Hope target rock chip samples have up to 44.4% copper.
GME Resources Ltd. (ASX:GME)
ASX-listed exploration and development company GME Resources Limited has nickel, cobalt, and gold interests in Western Australia. The company has 100% ownership of the globally significant NiWest nickel-cobalt (NiWest) project. The project has large, high-grade laterite resources of 85.2 million tonnes grading 1.03% nickel and 0.065% cobalt.
GME recently announced that bulk sample collection and the sonic metallurgical program are progressing at the NiWest nickel-cobalt project. The program will take around eight weeks to complete, and the results are expected in the first quarter of 2023. The Definitive Feasibility Study (DFS) will include front-end engineering.
Image: © Zhudifeng | Megapixl.com
The sonic drill sample will be used to check previous results achieved at Hepi, Mt. Kilkenny and Eucalytpus. The Wanbanna deposit hosting 111kt nickel and 7.2 kt cobalt will also be tested.
Alchemy Resources Ltd. (ASX:ALY)
Australian exploration company Alchemy Resources Limited works for growth via the discovery and development of gold, base metal, and battery metals. Alchemy has the Karoine Gold, Lake Rebecca Gold, and Bryah Basin projects in Western Australia. There are two projects in New South Wales: the Cobar Basin-Lachlan Fold Belt Project, and the West Lynn Project.
Alchemy recently completed the first pass, project-wide regional reconnaissance at the Lake Rebecca project. Pegmatites and granite intrusives were mapped across the site.
Lithify Pty Ltd presented the results of a targeting review and concluded that Lake Rebecca is highly prospective for lithium, gold, and lithium-caesium-tantalum (LCT) mineralisation on the Keith Kilkenny and Claypan shear zones.
Ardea Resources Ltd. (ASX:ARL)
Ardea Resources is a battery minerals exploration company based in Australia. Its main activities are in Western Australia. The Australian Federal Government awarded Major Project Status to Ardea’s 100%-owned Kalgoorlie Nickel Project (KNP).
Recently, an independent panel of experts from Digbee Environmental Social and Governance (ESG) awarded the overall ESG rating of BBB to the Kalgoorlie Nickel Project. The company feels it represents a strong commitment to integrating ESG and reporting transparency.
Ardea also conducted the initial assessment of LCT and rare earth element (REE) potential across its Eastern Goldfield and KNP tenements. Multiple pegmatites were mapped in the Perrinvale project.
