Resources Top 5: Errawarra soars on gaining silver-rich ground

On the back of acquiring silver-rich tenements in WA’s Pilbara, Errawarra Resources is a major small cap mover, increasing 140% to 6.5c.

Errawarra is shimmering after acquiring silver-rich tenements, including the historical Elizabeth Hill mine. Pic: Getty Images

• Errawarra Resources has acquired a suite of silver-rich tenements in WA’s Pilbara

• Support has been received by Frontier Energy from the Australian government’s Capacity Investment Scheme 

• The Chvaletice project of Euro Manganese has been declared a strategic deposit by the Czech government

Your standout small cap resources stocks for Monday, March 24, 2025.

Errawarra Resources (ASX:ERW)

On the back of the acquisition of silver-rich tenements in WA’s Pilbara and strong silver market fundamentals, Errawarra Resources is a major small cap mover, increasing 140% to 6.5c.

The company signed binding agreements for the company to acquire 70% of the historical Elizabeth Hill silver project, 70% of the silver rights to the Pinderi Hills project tenement package and 70% of the ownership of three tenements or tenement applications surrounding the silver project.

The collective tenement package totalling 180km2 is in the Tier-1 mining jurisdiction of the West Pilbara, which has been drawing plenty of attention primarily due to the gold and copper-gold exploration successes of companies such as De Grey Mining and Artemis Resources.

Of particular interest in the package is the Elizabeth Hill mine which closed in 2000 due to low silver prices and from which 1.2Moz of silver was produced from 16kt of ore at a head grade of 2194 g/t Ag in only one year of production.

ARW, which is to be renamed West Coast Silver (ASX:WCE) subject to shareholder approval, is the first explorer to consolidate the additional highly prospective underexplored areas for silver mineralisation. 

This acquisition, which ERW described as transformational, is conditional upon meeting the conditions precedent and obtaining relevant approvals.

It ensures that the company is underpinned by a high-grade historical producing silver asset, with significant resource growth potential and future low-cost operational opportunities in a Tier-1 global mining jurisdiction.

The acquisition is in conjunction with a $3 million placement to existing shareholders and new investors including major fund investors.

“This is an exceptional opportunity for our shareholders, and we are fortunate to have secured an interest in the Elizabeth Hill silver project and extensions,” ERW’s chairman Thomas Reddicliffe said. 

“This will enhance our existing exploration projects in the same region of Western Australia with the addition of an interest in a high-grade past producing silver asset with growth potential not previously tested.

“The combination of existing high-grade silver intercepts signify growth potential and compelling exploration prospectivity at both near mine and regional targets. 

“With Elizabeth Hill being located on an approved mining lease, this presents an opportunity for the company to fast-track drilling and, if successful, mining supported by a buoyant silver market driven by strong investor demand and global issues.”

Safe-haven demand is one of the factors behind silver’s strength, albeit in the shadow of gold.

The metal’s dual role as a precious and industrial metal gives it unique characteristics as a safe-haven asset. 

Unlike gold, which is primarily valued for investment and jewellery, silver's extensive industrial applications provide an additional demand floor that can limit downside during economic expansions when traditional safe-haven demand might wane.

Frontier Energy (ASX:FHE)

The renewable energy intentions of Frontier Energy have been bolstered by support from the Australian Government’s Capacity Investment Scheme (CIS) for the Waroona Renewable Energy Project in WA.

Waroona is one of four WA renewable energy projects to secure support under the CIS, a revenue underwriting scheme aimed at accelerating investment in renewable energy and storage projects.

CIS provides a long-term revenue safety net for up to 15 years, that decreases financial risk for investors and debt financiers. Participation provides a revenue floor guaranteed by the Australian Government, which enhances the ability of the company to secure financing for the project’s development.

This support gives the Waroona project downside revenue protection, an essential requirement for any financing. If total revenue falls below an agreed floor price as determined in Frontier’s CIS tender, the government will provide top-up payments, therefore guaranteeing a minimum level of revenue.

It is the first tender for the CIS in Western Australia. More than 13.5GWh of applications submitted bids for the process, more than five times the final allocation of 2.6GWh.

Stage one development of the project is for 120MW of solar generation and 80MW 4.75 hr battery or 380Mwh (0.38GWh) of storage and Frontier continues to advance multiple funding initiatives for this stage.

Projects are assessed against several criteria, including expected time frame for delivery, ability to successfully participate in the Reserve Capacity Mechanism (RCM), system benefits and contribution to local and indigenous communities.

“This is a major step forward in the Waroona Project’s development and a vote of confidence that it is on track to play an important role in WA’s renewable energy transition,” Frontier CEO Adam Kiley said.

“The process to secure finance for development of the project continues to take shape and we are especially encouraged by the interest from large scale, global participants in the renewable energy sector from a range of funding options. 

“Our successful CIS application, through its revenue underwriting mechanism provides important assurance to financiers on revenue certainty, further strengthens our position in this process.

This CIS support has resulted in the FHE share price rising more than 48% to 14.5c.

Euro Manganese (ASX:EMN)

Manganese is another of the so-called critical minerals in the spotlight due to its use in electric vehicle batteries and this has been demonstrated by the Chvaletice project of Euro Manganese being declared a strategic deposit by the Czech government.

Investors have warmed to the recognition of manganese as a strategic and critical raw material for the Czech Republic, sending shares as much as 18.5% higher to 4.5c.

Obtaining this status is a crucial prerequisite for receiving a state investment incentive in the form of a grant and expedites the predictability of the permitting process.

“Being classified as a strategic deposit by the Czech government is a significant milestone for Euro Manganese and we appreciate the support and recognition of the importance of the Chvaletice manganese project,” interim CEO Marina Blahova said.

“This designation represents a significant catalyst for our development timeline and reflects the critical role our project plays in establishing local, sustainable raw material supply chains.

“This validates our team’s hard work and commitment, and strengthens our position as we continue to advance project development.”

Greenvale Energy (ASX:GRV)

Among a handful of ASX-listed companies banking on Australia warming to the advantages of uranium mining to power up nuclear energy is Greenvale Energy.

Although uranium mining is allowed in South Australia and the Northern Territory, other states allow exploration only, including in Queensland, while WA has a policy ban on new mines.

The Minerals Council of Australia advocates for the lifting of the nuclear energy ban in Australia, which was imposed 25 years ago, a decision its says has cost the nation significant global investment and scientific collaboration on new nuclear technologies.

Greenvale has staked a claim in Australia’s uranium potential with a portfolio of uranium exploration plays in the Northern Territory’s Pine Creek Mineral Field and its new Oasis uranium project in Queensland.

The company has wrapped up a $1.8m placement to begin exploring Oasis and for the next phase of exploration in the NT.

This was well supported by new and existing shareholders and was completed at 4.8c a share, representing a respective 21.2% and 18.6% discount to the 5-day VWAP and last close.

The company will also cap off test programs at its Alpha torbanite project in the Sunshine State, where it believes it can establish a commercial pathway to becoming a key domestic source of bitumen.

Executive chairman Neil Biddle said he was pleased with the significant level of investor interest and support for a raising which puts the company in a strong position to execute its 2025 growth strategy.

“With exploration set to ramp-up across our high-quality Australian uranium portfolio, including our maiden drill program at the Oasis Project, shareholders can look forward to a period of significant activity and news-flow in the coming months,” Biddle said.

Terra Metals (ASX:TM1)

Another positive move was made by critical minerals explorer Terra Metals, which was as much as 45% higher to 2.9c after producing high-grade concentrates from the Dante Reefs copper, gold and platinum group metals project in WA.

Metallurgical testwork has demonstrated the potential for Dante Reefs to produce three high-grade concentrates.

The concentrates were produced with excellent recovery rates, using simple and low-cost processing techniques. 

According to Terra Metals (ASX:TM1), the project has the potential to be a globally significant source of a range of commercially attractive products including copper-gold-PGM concentrate, vanadium-magnetite concentrate and titanium-ilmenite concentrate.

TM1 said the vanadium-magnetite concentrate, in particular, exceeded concentrate grades achieved by leading ASX vanadium resource projects, supporting the potential for competitive production of vanadium products, along with suitable feedstock to produce high-purity vanadium pentoxide flake. 

The titanium-ilmenite concentrate also exceeds concentration grades achieved through magnetic separation by leading hard rock ilmenite concentrate producers.

Phase 2 metallurgical testwork is now planned to optimise processing parameters, concentrate grades and metal recoveries.

“The metallurgical results demonstrate the economic potential of the project, highlighting the potential for the Dante Reefs to produce copper, gold, platinum, titanium and vanadium products,” TM1 managing director and CEO Thomas Line said.

“We have systematically approached the development and assessment of the Dante Reefs since the initial discovery was made last year. 

“We will continue our systematic development of the deposit, including Phase 2 optimisation testwork and delineation of a maiden resource.”

This article does not constitute financial product advice. You should consider obtaining independent financial advice before making any financial decisions. While Errawarra Resources, Greenvale Energy and Frontier Energy  are Stockhead advertisers, they did not sponsor this article.