LYN's Drills Poised to Spin After Heritage Green Light
Final hurdle cleared: Lycaon Resources are set to break ground in the red-hot West Arunta region as they join the race for critical mineral riches.
Western Australia's West Arunta is about to get even hotter.
In huge news for our investment, Lycaon Resources (ASX: LYN) has received Heritage Approval, with drills expected to be spinning on their promising niobium targets as soon as next month.
Why is Heritage Approval important?
For those new to the mining game, Heritage Approval is often the final hurdle before drilling can begin – often a make-or-break moment for junior explorers. This approval signifies that LYN has the green light to proceed with its exploration plans, a crucial step in potentially unlocking the value we saw when we first invested.
The West Arunta: Australia's hottest exploration region
Lycaon is now cleared to drill niobium targets in the West Arunta that look a lot like the ones that sent the share prices of nearby WA1 Resources (ASX: WA1) and Encounter Resources (ASX: ENR) through the roof. These promising targets were a cornerstone of our initial investment thesis.
The West Arunta is the hottest exploration spot on the planet right now, and LYN is in the thick of it. The countdown to drilling their Stansmore, Volt, and Ions targets has now officially begun.
To sweeten the deal, the WA Government has chipped in $180,000 through the Exploration Incentive Scheme (EIS) to help LYN cover those drilling costs. This co-funded drilling program isn't just financial support – it's a nod to the exploration potential of LYN's West Arunta project.
Here's where it gets really interesting:
LYN is currently trading at a modest 25c
LYN's market cap is just $13 million
Compare this to WA1 ($908 million) and ENR ($207 million), whose values skyrocketed after their discoveries
We're looking at some serious upside potential if those drills hit.
The drilling targets: What makes them exciting?
The number one reason we invested in LYN was the targets. To break it down simply:
LYN's targets are near-identical to those of WA1 and ENR
Drilling will focus on a regionally prominent pipe-like feature
500m wide
Starts 120m below the surface
Similar attributes to WA1 and ENR's successful niobium discoveries
Geophysical expert Terry Hoschke, who assisted Encounter Resources before their discovery, has provided encouraging analysis of LYN's targets. When a veteran who's seen it all gets excited, we pay attention.
What's next for LYN?
With Heritage Approval in hand, LYN can start calling drilling contractors to test these targets as soon as possible. We anticipate drilling starting in 4-6 weeks, which in the world of small-cap mining is practically tomorrow.
LYN's Technical Director, Thomas Langley, puts it best:
"As we have seen with WA1's and Encounter's recent drill results in the region, this area has proven to have a very good strike rate of success in drilling regionally significant geophysical anomalies like our Stansmore target … We aim to emulate the success of WA1 in making a major discovery in the West Arunta region."
This is a major milestone for the company, made possible only with the Parna Ngururrpa traditional owners' approval. It's a win-win situation, fostering positive relationships while unlocking the region's potential.
Why we're bullish on LYN
This latest news reinforces why we're bullish on LYN. Let's recap:
Tantalising targets in a hot exploration region
Healthy bank balance of over $4 million
Co-funded drilling program
Tight share structure
A modest $13 million valuation with significant upside potential
Remember, we saw WA1's share price increase by over 11,000% – yes, 11,000% – from pre-drilling to resource-defining drilling in under two years.
Will LYN be the next big success story in the West Arunta?
While there are no guarantees in exploration, we're set with our investment and eager to see those drills start turning.
Grab your popcorn; the LYN show is about to begin, and you won't want to miss a minute of it.
What to watch for
As investors, it's always important to look for active companies with near-term plans. These companies represent potential near-term shareholder returns.
With Heritage Approval now received, LYN is just that.
As this story unfolds, keep an eye on:
The start of drilling operations
Any preliminary results or observations from the drill sites
Assay results as they come in
Changes in trading volume or share price movements
If LYN can replicate the similar success of WA1 and ENR, this could see the share price multiply many times over.
- Equities Club, July 3
Wait, what’s niobium again?
For a deeper dive, head to our piece from July. The quick version: niobium is a critical mineral with a bright future. It's not just about stronger, lighter steel anymore. From electric vehicles to MRI machines, niobium is becoming indispensable in high-tech industries.
With supply heavily concentrated - about 80% comes from a single mine in Brazil - governments are keen to diversify sources. That's why discoveries like those of WA1 and ENR have turned heads - and why we're watching LYN so closely.
In short, the world's going to need a lot of niobium over the next few decades. LYN might just be in the right place at the right time.
