Resource Base Limited - Quarterly Activities and Cashflow Report - 29 July 2024
RBX (RBX) Share Update July 2024 Monday 29th
Resource Base Limited Reports Quarterly Activities and Cashflow
Resource Base Limited (ASX: RBX) has released its quarterly activities and cashflow report, highlighting significant progress in its lithium and rare earth element projects, as well as its current financial position.
Instant Summary:
- Completion of the 2024 summer field program at the Wali Project.
- Identification of clustered outcrops at Wali, confirming lithium-cesium-tantalum (LCT) pegmatites prospectivity.
- Pending lab results from a soil program over a 1.2km² area at Wali.
- Cash reserves of $585,000 as of 30 June 2024.
- Continued exploration efforts despite challenging market conditions.
James Bay Lithium Projects
The 2024 summer field program at the Wali Project aims to follow up on anomalous targets identified in 2023. The reconnaissance sampling at Wali delineated clustered outcrops with connected strike, confirming its prospectivity for Lithium-Cesium-Tantalum (LCT) pegmatites. The company completed a soil program over a highly prospective 1.2km² area at Wali, with lab results pending.
Corporate Activities
As of 30 June 2024, Resource Base Limited reported cash reserves of approximately $585,000. Despite challenging market conditions, the company continues to explore its assets in a cost-effective manner for shareholders. The company is also reviewing several complementary project opportunities.
Project Overviews
The Ernst Lake Lithium Project comprises 109 mineral claims totaling 5,631.72 hectares in the James Bay Region of Québec. Located along the Trieste formation, it is near recent lithium discoveries by Winsome Resources Limited. The Wali Lithium Project, with 100 mineral claims totaling 5,112 hectares, is located in the LaGrande sub-province and is underlain by source rock known to host lithium pegmatites.
Mitre Hill REE Project
The Mitre Hill Project is highly prospective for clay-hosted Rare Earth Elements (REE) within the southern margin of the Murray Basin. Drilling results have confirmed shallow mineralization across two tenements. The maiden JORC Inferred Mineral Resource estimate of 21 Mt @ 767 ppm TREO shows significant potential for growth. No work was undertaken at Mitre Hill during the June quarter.
Financial Summary
The company reported exploration expenditure of approximately $41,000 during the June quarter. Payments to related parties totaled $72,000, covering directors' fees and superannuation. The company's cash flow from operating activities showed a net outflow of $116,000 for the quarter.
The continued exploration efforts and identification of prospective zones at the Wali Project are positive indicators for Resource Base Limited's future growth. However, the company's limited cash reserves and ongoing expenditures may raise concerns among investors. The pending lab results from the soil program at Wali will be crucial in determining the project's potential and could significantly impact the company's stock price.
Investor Reaction:
Analysts have noted the company's strategic focus on cost-effective exploration and the potential of its lithium and REE projects. Investor sentiment remains cautiously optimistic, with a keen eye on the upcoming lab results from the Wali Project.
Conclusion:
Investors should monitor the pending lab results from the Wali Project and assess the company's ability to secure additional funding for continued exploration. Resource Base Limited's strategic response to market conditions and exploration outcomes will be key in maintaining investor confidence.