Resources Top 5: Chinese export controls light fire under tungsten plays

Tungsten-focused EQ Resources and Tungsten Mining have recorded big gains after China introduced export restrictions on several critical minerals.

China's move to restrict exports of more critical minerals has sent shares in tungsten-focused EQ Resources and Tungsten Mining soaring. Pic: Getty Images

• Tungsten producer EQ Resources climbs on China’s move to further restrict critical minerals exports

• OzAurum takes top spot again on visible gold in Mulgabbie North assay

• Top January resources gainer AusQuest up on strong volumes despite no news

Your standout small cap resources stocks for Wednesday, February 5, 2025.

EQ Resources (ASX:EQR) and Tungsten Mining (ASX:TGN)

China’s move to tighten export controls on several critical minerals – tungsten, tellurium, bismuth, molybdenum and indium – essential for high-tech and defence applications has proved to be a boon for the shares of tungsten-focused juniors.

EQ Resources, which produced 42,292 metric tonne units (422,920kg) of tungsten in concentrate during the second quarter of FY2025, was one of the clear leaders today.

This production was due to record output from its Saloro operations in Spain, which more than offset an output decline at Mt Carbine, Queensland, due to waste stripping efforts and lower-grade ore deliveries, as well as limitations of water supply due to below average rainfall in the beginning of the Far-North Queensland rain season.

It also has a five-year tungsten concentrate offtake agreement signed with US-owned fully integrated tungsten manufacturer Elmet Technologies in November 2024 that had previously been valued at ~$30m.

Importantly, this agreement provides both parties with a pathway to jointly work on US government funding opportunities that seek to enhance critical materials supply and further downstream integration of the EQR’s tungsten concentrate into the US tungsten supply chain, both of which have gained greater importance in wake of the Chinese restrictions.

Trailing behind is Tungsten Mining, which has no news out today.

In the December 2024 quarter, the company acquired the Mt Mulgine project assets held by Minjar Gold, giving it the rights to explore for all minerals including gold and other minerals beyond tungsten and molybdenum.

It completed the strategic engineering study, which highlighted premising development opportunities supported by completed drilling and testwork programs.

TGN also completed the acquisition of the remaining 80% in the Hatches Creek tungsten project from GWR Group.

Drilling completed at the project confirmed the continuity of mineralisation at the Hit or Miss target and Treasure targets while intersecting multiple zones of tungsten-copper mineralisation at the Green Diamond target.

OzAurum Resources (ASX:OZM)

After taking the top spot on Monday after reporting high-grade gold results from aircore drilling at its Mulgabbie North project, OzAurum is back in the spotlight after reporting that visible gold was reported from the top composite assay of 4m at 14.17g/t gold.

It added that up to 50% quartz was observed in multiple high-grade intervals, a hallmark of significant gold systems, and that there were hosted in favourable sandstone units within the Cross Fault area, similar to other major gold deposits in the Carosue Dam Basin.

“This exciting new discovery at Mulgabbie North marks a significant milestone for OzAurum,” managing director Andrew Pumphrey said.

“The high-grade gold intersected in MNOAC 705, with visible gold observed, confirms our geological model and reinforces our belief in the project's potential.”

The company expects a reverse circulation rig to arrive onsite late next week to conduct follow-up drilling while assays of more detailed 1m samples are also expected next week.

AusQuest (ASX:AQD) and CZR Resources (ASX:CZR)

Up on no news

AusQuest, the top resource gainer of January 2025, has seen big gains on strong volumes today despite having no news out.

The long-time ASX battler and prospect generator can thank its discovery of a large porphyry deposit at low altitude in Peru with the initial hole intersecting 348m at 0.26% copper and 0.06ppm gold from surface.

There are also signs that AQD is only just getting started here with the company noting that mineralisation at the Cangallo project remains open in all directions.

Cangallo is also close to significant infrastructure, adding to its potential for development as a low-capital copper play.

CZR Resources is also up on no news though it is drawing closer to the Foreign Investment Review Board’s expected decision on February 28, 2025, on whether to approve its Robe Mesa transaction.

The company had agreed in January 2024 to sell its 85% interest in the Robe Mesa iron ore deposit – part of the Yarraloola project in WA – to Miracle Iron, which is linked to Chinese interests for $102m.

A definitive feasibility study completed in October 2023 had outlined robust returns for a mine producing 3.5-5Mtpa iron ore over an eight year mine life.

At Stockhead, we tell it like it is. While OzAurum and Tungsten Mining are Stockhead advertisers, they did not sponsor this article.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as Resources Top 5: Chinese export controls light fire under tungsten plays