LRV - Larvotto Resources

Larvotto Resources Limited (ASX Code: LRV) lodged a prospectus to raise up to $6 million and list on ASX. The offer in the prospectus was for 30 million shares at an offer price of $0.20 per share, with an attaching option on a one for two basis and a 3 year term.

Larvotto is an emerging exploration company with a portfolio of copper, cobalt and gold projects operating in Australia and New Zealand. The Company has three project areas;

• Mount Isa, Queensland, focused on copper, gold and cobalt,
• the Eyre Project directly east of Norseman, WA with nickel, gold, copper and PGE potential,
• an advanced epithermal gold opportunity in the north island of New Zealand.

Larvotto Managing Director, Mr Ron Heeks, said at the launch of the PDS:

With an ASX listing nearly complete, the company will commence work on its Mt Isa Copper project, New Zealand based Ohakuri Gold project and West Australian gold and base metals project at Eyre, east of Norseman.

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Listed today, opened at 14c and keeping well off the IPO price, with the high so far of 14.5c

Larvotto Resources up 33% to 16c today on news that they are targetting lithium and base metals at their Eyre Project in WA via a geochemical sampling program that is due to commence "in early January 2022". Just the mention of lithium was enough to get the share price moving this morning, but the Eyre Project is in infancy and the market may be getting ahead of itself here.

it's good news, but without some kind of follow up announcmement I expect that the share price will soften in the coming days as traders exit.

LRV need to format their announcements a little better. Their padding and border settings are out of whack with this one, and it's not a good look.

greggles said:

Just the mention of lithium was enough

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Going to be a theme for some time i think, i followed this one in from the IPO. I don't normally buy at going public, but took the hint from Lowell Resources and bought a couple of days after launch.
All these juniors are going to have to be creative when it comes to developing base metal projects effectively without being sidetracked by the hint of Lithium.

Thats two days now of above average volume, in fact double the usual average.
Exploring for base metals (Mt Isa ) and Lithium (Norseman, WA), close to Liontown's Buldania deposit.

Huge volume today with no news, nothing i could see, not the first time this has happened either.
I took some profit accordingly, and trimmed the position today.
Lowell Resources are the largest shareholder and Soul Patts are in the top 20 too.
I'm assuming its rumours of Lithium to make the price jump that much.

Response:

• An article published by mining journalist Barry Fitzgerald in an on-line article in Livewire on 14 April 2022 highlighted the Company’s portfolio inclusive of copper, gold and lithium, and associated current commodity prices, which may be a factor in the share price and trading performance of the Company.
• On 6 April 2022 the Company announced that it had applied for an exploration licence adjoining its Eyre Project in Western Australia, adjoining other nearby lithium prospects, and on 4 April 2022 provided a Corporate Presentation summarising the Company’s key projects.
• The Company announced on 10 March 2022 that drilling will commence at it’s Ohakuri gold project, located in the North Island of New Zealand. Although drilling has commenced, there are as yet no results to report. The Company will report results accordingly when they have been received and compiled.

- and , some scurrilous chatfeed somewhere?

greggles said:

Just the mention of lithium was enough to get the share price moving this morning,

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.... And now...

18 April .... LRV has unearthed “bonanza grade” results from drilling at the Merivale South REE prospect, within its Eyre project in Western Australia.

The company recently completed aircore drilling at the prospect with assays returning up to 1.26% (12,611 parts per million) total rare earth oxides (TREO) with 3,787ppm magnetic REO.

One highlight intercept was 6m at 3,223ppm TREO from 19m, with 16.6% neodymium and praseodymium (NdPr) and 3.2% dysprosium, including 1m at 7,057ppm TREO from 22m, with 18.3% NdPr and 2.86% dysprosium.

Another intercept returned 12m at 2,326ppm TREO from 12m, with 16.7% NdPr and 3.7% dysprosium, including 1m at 12,616ppm TREO from 20m, with 22.24% NdPr and 1.56% dysprosium.

Drilling focused on a 500m section of an 8km anomaly that was identified via historical exploration.

Larvotto managing director Ron Heeks said the intercepts were “exceptionally high-grade” for ionic clay REE – noting mineralisation was found at shallow depths and remained open in all directions.

He said soil geochemical results indicate the higher-grade core of the anomaly extends longer than 3km, within the wider 8km of strike.

... hit 28c when announced before dropping back over last 3 days

Since listing

Got to 35c, closed at 32.5c or 50% up

Dona Ferentes said:

18 April .... LRV has unearthed “bonanza grade”

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Wish the term bonanza wasn't used. Makes me yahoo

yee haw.

publicists at it again...
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Larvotto has made a deal to acquire the Hillgrove gold-antimony mine near Armidale in NSW for the knockdown price of $8 million, including $4.89m in replacement environmental bonds.

The acquisition comes just ahead of Larvotto’s second anniversary on the ASX. For the vast majority of juniors, the two year anniversary comes up without a resource being established, and with funds from the IPO running out.

Larvotto’s Hillgrove acquisition breaks that pattern and means the stock is set for a re-rating as it sets about re-establishing Hillgrove as a significant producer from its 1 million ounces of gold and 90,000 tonnes of high-value antimony mine.

The good fortune has been at the expense of the formerly ASX-listed Red River Resources which went in to administration last year.

Red River acquired Hillgrove in 2019 and proceeded to spend $20 million on exploration and resource definition, as well processing tailings from the historic mining operation, ahead of completing a re-start study based on the hard-rock resource.

But Hillgrove had to be parked up in the September quarter last year when Red River hit trouble at its main undertaking, the Thalanga zinc-copper-lead mining operation in near Charters Towers in north Queensland
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LRV was trading mid-week at 10.5c a share for a market cap of $23 million after shares associated with the acquisition are taken into account.

¿Third time lucky?? ... since listing:

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and the caution ...
A feature of the Larvotto’s pick up of Hillgrove is that the funding package (share placement and rights issue at 7c a share) will see the Chinese investment group Gage Capital emerge with 19.9% of the company, and commodity trader Trafigura with 15%.

Gage had been talking to Larvotto before the Hillgrove acquisition .. as it rated the company’s existing exploration assets near Mt Isa (copper/gold/cobalt), in New Zealand’s North island (gold), and in Western Australia (gold/nickel/PGEs).

Given the Hillgrove pickup, it could be suggested that those exploration interests now come for free given Larvotto’s modest post Hillgrove market cap of $23 million.

It is hard and often fruitless to follow "Pig in Poke" stocks - this company has looked at REE, Au, Cu, Li amongst many - but occasionally something may emerge.
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International eyes on Australia’s largest antimony deposit​

TIM BOND

Big players in the global critical minerals industry have invested $US8 million ($12.17 million) in funding to Larvotto Resources’ Hillgrove gold-antimony project in New South Wales.

The non-binding contract, signed with both Xcelsior Capital and Wogen Resources, will see the former party loan $US4 million for antimony offtake and gold concentrate marketing rights from Larvotto’s Hillgrove project.
Xcelsior will provide a further $US4 million working capital loan to fund Larvotto through to the updated ore reserve statement and bankable feasibility study for Hillgrove.
Xcelsior chief executive officer Liam Farley had nothing but praise for the Hillgrove project.

“The Hillgrove gold and antimony project represents an opportunity to finance the development of a high quality, brownfield asset with significant sunk capital.
“(Hilgrove) will be a leading producer of antimony, a critical metal with limited western supply that is increasingly important to the energy transition through its use in the solar industry.”

Under the agreement, Wogen Resources, a leading antimony trading house with 50 years of international presence, will provide exclusive off-take sales and distribution services globally once production commences.

“The Wogen Xcelsior combination has been selected from a group of potential financing and offtake partners,” Larvotto managing director Ron Heeks said. “Wogen is a UK based metals trading company with an established presence in the antimony market and Xcelsior a specialist critical minerals investor.
“For them to consider funding the development of the company is a massive endorsement of the project.”

With the latest cash injection, Larvotto is fully funded to move to project financing for Hillgrove while maintaining exploration on its other projects.

Dona Ferentes said:

It is hard and often fruitless to follow "Pig in Poke" stocks - this company has looked at REE, Au, Cu, Li amongst many - but occasionally something may emerge.

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add Antimony to the list? up and retrace on latest news.

market cap $15m ...

Highlights
• 2,036m diamond drilling program completed, designed to extend high-grade mineralisation at Bakers Creek
• Abundant grains of visible native gold identified in quartz-carbonate breccias and quartz-carbonate veins
• Assay results expected in early April

still $0.07

Dona Ferentes said:

• Assay results expected in early April

still $0.07

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nice licks going through today.

and at 3:52pm,

Security Code: LRV
Pause in Trading
Trading in the securities of the entity will be temporarily paused pending a further announcement.

today's action

up again this morning.... and a reply to ASX query

2. Is there any other explanation that LRV may have for the recent trading in its securities?
LRV has been actively presenting at conferences to showcase the purchase and plans for its recently acquired 1.4Moz AuEq gold and antimony Hillgrove Project. Significant increases recently in both the gold and antimony price and the rise in relevance of critical minerals has increased the exposure and potential of this development ready project.

The Company has also recently released that visible gold was noted in drilling from the Bakers Creek exploration program and that a concentrate offtake company is undertaking Due Diligence to potentially provide US$8M in funding to progress the Hillgrove Project. The Company has received insufficient assays from the drilling program at Bakers Creek at this point to be able to release meaningful results.

The Company has had a significant shareholder, which invested in the Company’s lithium potential, selling over the past several months and this has constrained the share price. The Company believes that the share overhang has now been removed.

The Company’s share price has recently traded well above the 8.7c reached on 3 April 2024.

3. Please advise whether any samples of the drilling exploration programme that the Company is currently undertaking (or has recently undertaken) have been sent to the laboratory? If yes, please provide the exact date on which the drill cores were sent to the laboratories.
Refer to the table (mainly April - DF)

4. As at 3 April 2024, the interpretation of this information was incomplete and undergoing further review by our technical team. The intention of the Company was to report the results of the drill programmes once all information on assay results had been received and interpreted, so as to provide a complete and full assessment of the drill results to the market. We believe this approach is appropriate, and typical industry practice.
The Company expects to be in a position to release the results of this drilling programme by 16 May 2024.

5. Please advise when the drilling was completed.
Drilling at Bakers Creek, Hillgrove in New South Wales was completed 12 March 2024.

6. Please advise what arrangements (if any) LRV has in place to maintain confidentiality of its assayresults? Please provide detailed information.
All drilling samples are submitted using 6-digit sample numbers. At no point is hole number or location provided outside of the Company. Results are relayed from the laboratory to the Larvotto Database Administrator (DBA) who combines analytical results with geology and survey controls. Larvotto has a single DBA who is the only person with access to the software and the software is password protected. Once combined the results are predominantly viewed onscreen with some paper plotting of information when required for interpretation of geology and anomalism in results. Information is stored in password protected databases and on Microsoft Teams which only allows staff to access information relevant to their requirements

Dona Ferentes said:

Highlights
• Assay results expected in early April

still $0.07

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mid month and still waiting. ... A bit of capitulation today .... lost the highs

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....not gonna win any tipping comp if it drops 10 per cent before stumps

Dona Ferentes said:

mid month and still waiting. ... A bit of capitulation today .... lost the highs
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....not gonna win any tipping comp if it drops 10 per cent before stumps

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and .. out of TH .

Larvotto has successfully raised $2,000,000 to accelerate development studies and exploration at the recently acquired Hillgrove gold-antimony project (100%-owned) in New South Wales, Australia while DD continues.

The Company is currently completing exclusive due diligence with Wogen Resources Ltd and Xcelsior Capital Ltd, expected to take approximately 60 days. The US$8M financing package will enable Larvotto to complete a Bankable Feasibility Study and progress towards project financing and mining operations at Hillgrove, significantly de-risking the project. The Xcelsior/Wogen DD team are currently on site at Hillgrove with the Larvotto Board and Hillgrove management.
Prior to selecting Xcelsior/Wogen, Larvotto received strong interest from multiple international commodity houses to provide non-dilutive, debt financing solutions for the development of Hillgrove, providing strong third-party endorsements.
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they call it non dilutive, but $0.075 is lower than where it's been. Now $0.089, and it was 10c

Dona Ferentes said:

¿Third time lucky ??

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pay dirt


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Managing Director, Ron Heeks commented,
“The drilling program at Bakers Creek yielded exceptional high-grade intercepts, returning significant high-grade results. This work highlights the wealth of mineralised structures within the Hillgrove field. Bakers Creek has historically produced over 300,000 ounces of high-grade gold.
. From our interpretation of these mined areas, we concluded there should be further extension to the ore shoots. The standout result of 31m at 65.8 g/t Au has clearly demonstrated that the mineralisation does extend to depth while maintaining excellent grades. We believe that other adjacent mineralised zones will also extend to depth in a similar way, and we look forward to testing these with upcoming drill programs, providing confidence that we can add further resources at Hillgrove from deeper zones. These stunning results also provide the Company with positive momentum as we near completion of the metallurgical study and the release of our initial Ore Reserve Estimate for the Hillgrove Project. "
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and share price rallied 50 per cent
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now here's the thing... I tipped this for April, but didn't for May comp.