LYN on the Launch Pad: West Arunta Drilling to Begin
Final preparations at Lycaon Resources' Stansmore target, where drilling starts next week near recent major discoveries by WA1 and Encounter Resources
The drill rigs are rolling in. Our investment, Lycaon Resources (ASX: LYN), is just days away from punching the first holes ever into the Stansmore magnetic anomaly in WA's red-hot West Arunta region.
Monday brought the news we've been waiting for - earthworks have kicked off, clearing the path for drilling in one of Australia's most promising exploration addresses. By this time next week, Lycaon’s drill bits should be spinning.
The timing couldn't be more perfect. This once-quiet corner of WA has turned into an explorer's playground, and LYN is about to join the action.
The West Arunta Success Story
The West Arunta has already made headlines with WA1 Resources' astronomical run from 20c to $22 after hitting their target. Now, LYN is about to test a similar magnetic anomaly, sitting under just 120m of cover. For context, WA1's company-making discovery was at 162m, while Encounter Resources struck at 81m.
“We are extremely eager to get drilling underway in the coming week.”
- LYN Technical Director Thomas Langley
Why We Backed Lycaon Resources
We took our position in LYN back in July for two compelling reasons:
The company's valuation sat well below its West Arunta peers
The Stansmore target showed striking similarities to recent major discoveries
Since July, the share price has held steady while the company methodically prepared for this moment. With drilling about to begin, these could be the last few weeks LYN trades at current levels - assuming drilling success, of course.
The Target
The Stansmore anomaly stands out for two key reasons. First, it's identified as a potential IOCG (iron oxide copper gold) deposit - the type of system that can deliver company-making discoveries. Second, it shows notable similarities to the niobium-rich systems that transformed both WA1 and Encounter's market positions in the region.
LYN will be making history as this small-cap explorer becomes the first company to drill the Stansmore magnetic anomaly in the West Arunta. The Stansmore target is under shallow sand cover, representing an exciting step into uncharted territory.
Armed with detailed drilling plans from renowned geophysicist Terry Hoschke, the team is targeting a prominent magnetic anomaly starting from just 120m depth.
The advanced analysis has refined the drilling locations, targeting similar geological features to those that delivered those major niobium discoveries for WA1 and Encounter.
Regional Potential
West Arunta's reputation for success in drilling geophysical anomalies continues to grow. WA1's 2022 niobium discoveries turned this once-quiet corner of WA into a hotbed of exploration activity. Lycaon Resources holds additional high-priority targets near these recent discoveries, but right now, all eyes are on Stansmore.
Why This Matters
IOCG deposits, such as Australia's Olympic Dam and Ernest Henry mines, have historically proven transformative for companies due to their immense scale and economic significance.
It's early days, but the geophysical similarities between Stansmore and neighbouring discoveries in the West Arunta provide a compelling reason for optimism.
The Investment Case
For investors in junior explorers, these are the moments that count. LYN ticks our key boxes:
Promising target in a proven region
Experienced technical team
Active management
Current valuation well below peers
Multiple catalysts ahead
Exploration always involves risks, though. While we're confident in Stansmore's technical merits, we always advise readers to seek professional advice and do their own research before investing in small-caps.
