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Global Lithium (ASX:GL1) has joined the ranks of lithium miners turning to other metals as the great lithium rerate makes uneconomic another project.
On Wednesday, the company acquired Octava Minerals’ (ASX:OCT) Talga Project, prospective for gold and base metals. That play is located in the Western Australia Pilbara region, covering some 20sq.km per Octava’s website.
Shares were nearly +13% higher at 2.30pm Sydney time on Wednesday.
In exchange for $200,000 – and an equivalent $200K worth of shares – Global Lithium has now picked up the asset to continue development on-site while gold prices remain at record levels (in terms of one year performance).
This, Global stated, aligns with its overall strategy to target “non-lithium mineral prospectivity across its largely unexplored portfolio of tenements.”
The acquisition notably consolidates for the stock a 12km gold trend based on geochem anomalies at the project; geotechs also have their eyes on copper potential – an increasingly familiar combo to see.
At this time, while copper prices have eased a little through 2024, copper is well above its pre-COVID levels and gold needn’t be revisited. But lithium remains in the doldrums, and it mightn’t ever hit early 2020’s levels again.
Meanwhile, Rare earth anchor metal neodymium remains flat YoY and only marginally higher than pre-COVID; uranium recently dipped below US$80/lb; and even palladium is down nearly -10% YoY despite a late October surge in prices.
If palladium is anything to go by, the amount of time which export restrictions and geopolitics can uplift trader sentiment for metals appears to be getting shorter and shorter as these events become more common.
So, in that context – Global Lithium’s move to acquire a copper-gold play absolutely makes sense, and, that’s why you’re seeing so many companies target that combo.
After all, it’s rational.
“There is no better time for Global Lithium to consolidate and investigate the prospectivity of Talga… market conditions for gold and base metals are very favourable,” GL1 exec chair Ron Mitchell said.
No kidding.
GL1 last traded at 20.5cps; 1Y returns are down -82%.
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