Weekly Wrap: Albo Keeps the Keys, Drill Bits Turn and Licenses Land
Political stability, policy clarity, and drilling activity signal tailwinds for small-caps
Albo's hung onto the keys to The Lodge while Dutton scrambles to update his LinkedIn profile, but the small-cap mining sector hasn't missed a beat.
As the dust settles from Saturday's election landslide, investors will be watching Monday's market open with renewed interest, even as explorers keep turning drill bits, securing licences, and preparing for what Labor's return means for the resources landscape.
This week's highlights:
Bubalus Resources kicks off drilling at its Victorian gold-antimony target.
Top End Energy secures crucial operating licence for its Kansas hydrogen play.
What Labor's second term actually means for ASX mining stocks.
Bubalus drills into Victorian gold country
Bubalus Resources (ASX: BUS) has started drilling at its Crosbie South Prospect, putting the first holes into a high-priority gold-antimony target in the heart of Victoria's goldfields.
BUS is testing ground that sits neatly between two of Australia's standout high-grade mines: Agnico Eagle's Fosterville gold operation and Mandalay Resources' Costerfield gold-antimony producer.
The program includes 4-5 diamond holes for around 1,000m total.
Targeting rock chip assays that reported up to 19.1 g/t gold.
Early work points to a well-developed mineral system similar to nearby deposits.
Victoria’s goldfields have produced some of Australia's most spectacular high-grade discoveries, and Crosbie South sits within 20km of two multi-decade producers.
The drilling should wrap in four to five weeks, with updates expected as the program progresses. Given the combination of grade, location and scale, success here would immediately elevate BUS in the eyes of institutional investors.
We like BUS for their methodical approach – Crosbie South now, Crosbie North next quarter, and their newly acquired Avon Plains target in Q4. They've mapped out a year of continuous drilling across multiple exciting prospects, giving investors plenty to look forward to.
Top End Energy: Operator licence secured
Top End Energy (ASX: TEE) capped a big April by landing a crucial operating licence for its Serpentine natural hydrogen project in Kansas.
The licence allows TEE to initiate drilling permitting and positions TEE as an active player in a fast-emerging natural hydrogen hub.
The Kansas Corporation Commission's approval means TEE can now:
Submit their 'Intent to Drill' applications.
Push ahead with plans for their first 5,500 ft well targeting the Precambrian basement.
Keep expanding their strategic land position, now at 25,000 acres with sights on 30,000 by mid-year.
Continue with the independent resource assessment, being led by TRA.
The licence enables the company to formally lodge its drilling applications and gives TEE an edge over many domestic and international peers still navigating permitting bottlenecks.
TEE has locked down acreage right next to industry pioneer Koloma and ASX-listed HyTerra. The region has attracted serious players, including majors like Fortescue and Mitsubishi.
The company's first well location was chosen in Marshall County based on structural modelling and recently released Koloma data.
TEE's recent quarterly report revealed solid progress across several fronts. During the March quarter, they:
Completed its acquisition of the natural hydrogen project.
Boosted their land position by 25%, focusing on strategic areas near HyTerra and Koloma.
Engaged Teof Rodrigues & Associates to complete an independent resource estimate across all Kansas leases.
They've also brought in the right leadership, with Luke Velterop taking the helm as CEO. Having previously served as COO at HyTerra and founded Serpentine Energy (which TEE acquired), he brings valuable experience.
We sat down with Luke recently to discuss TEE's strategy as the natural hydrogen race heats up:
This week, HyTerra entered a trading halt while drilling their own Kansas hydrogen well. With results expected any day now and TEE holding adjacent ground, we could be about to witness a defining moment for natural hydrogen exploration in the region.
Trading at just a fraction of HyTerra's valuation while holding $5.1 million in the bank, TEE offers investors significant leverage if Kansas delivers on its natural hydrogen promise.
Labor's back: What it means for miners and resource stocks
Labor has comfortably retained government in Saturday's election. That's good for renewables but bad for nuclear.
We took a deep dive earlier this week into what elections historically mean for the ASX. You can catch that here: The Election Effect: What History Tells Us About Markets Post-Vote.
With nuclear energy in Australia now dead for the foreseeable future, the real question for resource investors is what Labor's second term means for their portfolios.
Labor's policy settings for mining are now clearer than they have been at any point in the past decade. The party has embraced a more active role in resource development, particularly in the downstream and processing stages of the supply chain.
Key policies now include:
Recommitting to its Critical Minerals Strategy, focusing on battery metals and strategic materials.
Fast-tracking environmental approvals for strategic projects through the newly formed 'Priority Approvals Taskforce'.
Processing and refining infrastructure is eligible for support through the $15 billion National Reconstruction Fund.
What caught many off guard was WA Nationals leader Mia Davies throwing her support behind Labor's mining tax proposals. This unexpected backing signals that royalty reform could find its way back onto the agenda during Albo's second term.
For ASX investors, two clear trends are emerging:
Companies building downstream capabilities (processing, refining, value-adding) are sitting pretty – likely to receive both funding support and regulatory fast-tracking.
High-margin producers with limited Australian processing may face more scrutiny and potential cost pressure if royalty reform is revived.
Governments worldwide are taking a similar tack these days. Rather than letting markets run wild, they're actively steering critical mineral supply chains.
For junior explorers, this shift means new doors opening. Government backing that simply wasn't available five years ago is now on the table, particularly for projects that align with national priorities in battery metals and clean energy.
The Wrap
Albo's return to The Lodge removes one layer of uncertainty from the market. Political clarity tends to be good for business even when the outcome isn't everyone's first choice.
Monday should bring a modest relief rally as traders digest the fact that we've avoided a hung parliament and can expect policy continuity.
For those following the small-cap resources space, the fundamentals now take centre stage. With drills turning at promising gold targets, hydrogen plays clearing regulatory hurdles, and policy increasingly favouring critical minerals development, the spotlight shifts to execution and results.
The political noise will fade quickly. The companies that deliver on their promises in the coming months will be the ones that reward investors, regardless of who's running Canberra.
That's our take on a significant week. We'll be back with more insights next Sunday.
