The upcoming ASX stocks under $1 but having potential to grow significantly in the long term are
Wildcat Resources Limited (ASX: WC8)
Wildcat Resources Limited is making impressive developments in advancing its major lithium pegmatite discovery, with over 116,000 meters of drilling completed since July 2023. In the September quarter, the company announced good results from the first phase of metallurgical testing at the Leia pegmatite. These tests produced a spodumene concentrate grading 5.5% Li2O with recovery rates between 79% and 84%, derived from 288kg of pegmatite with head grades ranging from 1.0% to 1.4% Li2O. Additional high-grade lithium zones have also been identified at the Chewy North and Han pegmatites in the hanging wall of Leia, highlighting the resource potential across the broader project area.
With a cash balance of approximately $69.3 million as of 30 September 2024, Wildcat is well funded to maintain its aggressive exploration and development strategy. This financial strength supports the continued advancement of its flagship Tabba project, where much of the critical, long-lead-time study work has already been completed. In a particularly encouraging development, initial water analysis at Tabba has shown neutral pH and low total dissolved solids (TDS), comparable to the Perth tap water used in earlier metallurgical testing. This suggests that future testing may proceed with minimal adjustments, supporting efficiency in ongoing work.
Looking ahead, Wildcat is expected to enter the second phase of metallurgical testing while accelerating exploration and target generation at the Bolt Cutter and Mt Adrah projects. These activities are aligned with the company’s roadmap towards completing a Pre-Feasibility Study (PFS) and progressing to a Definitive Feasibility Study (DFS) in the next year, developments that will further support Tabba Tabba’s commercial viability and potential resource scale.
Strategically located in a region accounting for over 20% of global lithium supply, Tabba Tabba stands out as a highly promising project. As the company demonstrates successful exploration and metallurgical outcomes, the project’s rapid advancement could significantly elevate Wildcat’s valuation. This makes Wildcat an attractive investment relative to peers and well-suited for portfolios looking to benefit from lithium’s long-term growth trajectory.
In summary, Wildcat Resources is positioned to leverage several near- to medium-term catalysts as it advances its core projects, led by Tabba Tabba. With a clear pathway to feasibility milestones, a solid balance sheet, and a promising market environment, the company is well-positioned for value creation and significant upside potential, building a compelling case for shareholder returns.
Horizon Gold Limited (ASX: HRN)
Horizon Gold Limited provided an update on its activities for the quarter ending 30 September 2024, with a primary focus on advancing the Gum Creek Gold Project in Western Australia. The company has initiated work on the Feasibility Study, targeting improvements in mining schedules, resource interpolation, and processing efficiency. This includes assessing resource models for several deposits and consulting with mining contractors to update cost assumptions. The feasibility study aims to refine capital expenditure estimates and explore cost-saving measures, such as re-evaluating dewatering costs and processing plant throughput rates.
To support the Feasibility Study, Horizon has planned geotechnical drilling to enhance open pit design and resource drilling to further define and expand its deposits. Approximately 1,900 meters of geotechnical drilling will provide valuable data for pit designs, while 10,000 meters of infill and extensional drilling will aim to improve resource confidence, particularly at high-potential areas such as the Wedge and Hawk prospects. The company is confident that further drilling could significantly extend the 10-year mine life outlined in the Scoping Study.
The Gum Creek Gold Project holds considerable upside, with the potential for underground mining to extend the life of the operation. Horizon has identified several deposits, including Swan/Swift, Kingfisher, and Omega, as strong candidates for underground mining, though economic evaluation work for these is still in progress. Additionally, drilling at 12 other resource areas not included in the Scoping Study could significantly increase the overall resource base and improve the project's economics.
Horizon Gold also provided an update on its investment in Alto Metals Limited (AME), which owns the Sandstone Gold Project. Horizon holds an 8.4% stake in AME, which has seen its share price rise following a proposed acquisition by Brightstar Resources Limited. The investment, initially valued at $3.17 million, has increased in value to $3.65 million, and Horizon is reviewing its position. In addition, Horizon secured a short-term loan facility of $1.5 million from major shareholder Zeta Resources to support its operations while reviewing the AME investment.
(Source: Company’s Report)
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