Nov 19, 2023

Sentiment: Bullish

Type of Trade: Speculative

Industry: Lithium and Gold

Sector: Materials

As per our CEO interview in 17 November 2023.

Wildcat is an exploration company focussed on unlocking value by way of discovery targeting world class provinces across Australia. The company’s team has a successful track record and is focussed on exploiting the Tabba Tabba Lithium Project. The Tabba Tabba Lithium-Tantalum Project is situated 50km from Port Hedland, Western Australia, near some of the world’s largest hard-rock lithium mines. The district currently contributes about 20% of the global lithium supply.

✅ Tabba Tabba pegmatites have high potential for lithium mineralisation. Three of the four holes drilled outside the Tabba Tabba tantalum resource intersected pegmatite, revealing high-grade lithium intercepts, including 8m at 1.42% Li2O, 16m at 0.9% Li2O, and 1m at 2.00% Li2O.

✅ The project is believed to have over 100Mt of Li2O reserves as per two Tier 1 Deposit (+ two more emerging) have showed significant intercepts and thickness increasing to the north and at depth.

To put in perspective, the following shows similar projects resources from other listed ASX companies:

  • (ASX: SYA) – Sayona’s NAL mineral resources of 58.3Mt.
  • (ASX: CXO) – Core Lithium Finiss Project project 30.6Mt@1.31% Li2O + 10.1Mt@1.48% Li20 at BP22 and
  • (ASX: LRS) – Latin Resources, Colina Project 45.19Mt, at 1.32% Li2O
  • (ASX: AKE) – James Bay, 110.2million tonnes (Mt) @1.3% Li2O2 
  • (ASX: LTR) – Kathleen Valley 156Mt@1.4% Li2O + 15mt@1% Li2O

Wildcat Resources has recently raised $100m via Share Placement at 76c. The company has issued $131,578,948 extra shares. The funds will be used for further exploration, drilling, resources evaluation, permitting and project development studies such as mining, baseline and heritage), business development at its Tabba Tabba Lithium Project, continue exploration at the Bolt Cutler Lithium Project in WA, the Mt Adrah Gold Project ain NSW as well as other exploration projects, general working capital and corporate costs.

✅ Tabba Tabba project is located close to port and infrastructure.

✅ Wildcat to increase from three rigs drilling to seven in the new year.

✅ 34 holes in the lab (from giant Leia orebody)

✅ 8 new holes completed per week.

✅ Expecting to announce results every two to three weeks.

✅ Resources Estimation to be completed by mid 2024 (Jul-Aug).

Technical Analysis

The stock has moved 3000% within the last 12 months, which represented incredible good result for these early stage investors. With about 1.2m shares on issue post raise and 208m options and performance rights, there is still high potential for the stock price to move further since the company is very well cashed up. Obviously the upside is far lower than the past 12 months incredible rally and it is directly related to the quality of the upcoming drilling results.

The stock is trading at FOMO levels, 20% above the SMA40 and 200% above the SMA250.

Understanding the company’s pipeline is critical to success.

The most recent capital raising at 76c is likely to added a floor on the stock should the upcoming results are positive.

Should I Buy (ASX: WC8) Now?

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