Why Lanthanein Resources (ASX:LNR) more than doubled on December 6 2023

Lanthanein Resources (ASX:LNR), an ASX small cap explorer focused on rare earths, rose after signing a farm-in agreement, but not the typical kind you may think. Typically farm in agreements involve a major miner coming to the table to prospect at the smaller company’s project. In this instance, it is Lanthanein that has initiated a farm-in agreement, and it also may mark a change in direction for the company.

Lanthanein Resources (ASX:LNR) share price chart, log scale (Source: TradingView)

Lanthanein Resources pivoting to lithium

Lanthanein told investors it entered into a transaction to earn up to a 70% interest in the Lady Grey Lithium Project. This is 365km east of Perth and is directly adjacent to the nearby Earl Gray Mine. This operation has a resource of 189MT @ 1.53% lithium and is co-operated by SQM and Wesfarmers. And Lanthanein has not just been granted a small tenure, it has obtained 77km with ~18km of strike.

So now what?

Lanthanein told investors it would begin a drilling program in the first quarter of next year. It has an approved program for 193 Aircore and 53 RC (Reverse Circulation) drillholes, along with an extensive soil geochemistry program across other targets. There are also heritage approvals for expanded drill programs.

If the program is successful, there could be more upside in this one. However, as it is with all early stage explorers, shareholders can do nothing more at this stage than keep their fingers crossed.

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