Among ASX listed companies, two penny stocks are undergoing developments which can open these to good growth potential.
Aldoro Resources Ltd (ASX: ARN)
Aldoro Resources Ltd (ASX: ARN) is a mineral exploration and development company with projects across Australia and Namibia. The company focuses on its Kameelburg (REE-Nb), Narndee (Ni-Cu-PGE), Niobe (Rb-Li), and Wyemandoo (Rb-Li-W, Ni-Cu-PGE-Au) projects. In Namibia, the Kameelburg project saw the successful renewal of three Exclusive Prospecting Licenses, allowing further exploration. The company launched a 5,000-meter drilling program at Kameelburg and received positive assay results indicating extensive Niobium mineralization across a 262-meter sampling line. The company bought two portable diamond drill rigs to help with exploration. These rigs will help accelerate resource delineation at Kameelburg in 2025 while benefiting the local community by creating job and training opportunities.
In Western Australia, the company is advancing its Niobe Rubidium-Lithium project, located near Mount Magnet. This project is moving from a Prospecting Licence to a Mining Licence. Six pegmatitic bodies have been identified, and an inferred resource of 4.615Mt at 0.17% Rb2O and 0.07% Li2O has been declared. The company is actively continuing this project with the aim of securing the mining licence, which will allow for the next stages of development. The company is conducting a review of the Wyemandoo project, through plans to analyze promising rock chip samples to further evaluate its potential.
At the Narndee project, the company is evaluating the outstanding potential for base metals and gold. A caveat has been lodged on one of its tenements to secure potential royalty rights linked to a previous acquisition. The company is focused on advancing its diamond drilling program at Kameelburg, aiming to establish a resource estimate and further drill deeper to assess commercial-grade mineralization, positioning the project for growth in 2025.
American Rare Earths Limited (ARR)
American Rare Earths Ltd (ASX: ARR) completed important steps in its operations during the six months ending December 2024. The company’s exploration efforts at the Halleck Creek Project, particularly at the Cowboy State Mine, showed promising results with some of the highest recorded total rare earth oxide (TREO) grades in the region. This exploration success was further boosted by the expansion into new areas like Bluegrass and Sommers Flat. The drilling results, which showed 148 meters at 4,451 ppm TREO, confirmed the presence of high-quality rare earth minerals. This could lead to an increase in the resources at Halleck Creek.
The company received significant financial support, including a $7.1 million grant from the Wyoming Energy Authority and a letter from EXIM Bank offering up to $456 million. They also created a U.S. branch called Wyoming Rare (USA) Inc. and set up a new facility at the Western Research Institute in Wyoming. This facility will be used for storing drill samples, running operations, and possibly setting up a pilot plant. This solidified ARR’s U.S. presence and supported the ongoing development of its key projects. Major investments and collaborations were made with financial support from BMO Capital Markets, paving the way for ongoing growth.
Through January of 2025, the company had been granted approval to commence test mining at Halleck Creek, representing a significant step towards pilot plant processing and eventual commercial development in the future. The company further grew its mineral resource estimate at Halleck Creek by 12.2% to stand at 2.63 billion tonnes at 3,292 ppm TREO. A new scoping study confirmed the project's economic potential, with base and expanded production scenarios showcasing strong financial returns. ARR plans to bring development forward quickly, with first production in 2029. Wyoming's location for the project provides a strategic benefit to ARR in securing the U.S. supply chain for rare earths.
(Source: Company Announcements)
Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.
