The S&P/ASX Small Ordinaries fell sharply after the opening bell as surging oil prices, rising bond yields and escalating conflict between the US and Iran weakened demand for riskier assets.
At 10.05 am AEST, the XSO was down 60.5 points, or 1.73%, at 3,427.20. The index opened at its previous close of 3,487.70, then fell immediately.
The decline extends a reversal from the XSO’s late-August peak of almost 3,600. The index has now fallen nearly 5% from that level, erasing most of the gains recorded during the first three weeks of August and returning towards the lower end of its one-month range.
At 3,427.20, the XSO remains 7.6% above its 52-week low of 3,184.50 but is about 14.5% below its 52-week high of 4,007.10.
Despite the challenging market backdrop, several ASX-listed small caps continue to advance exploration, infrastructure and processing programs across gold, copper, critical minerals and natural gas. You can read about the following and more throughout the day.
Lightning defines new Mt Turner gold targets
Lightning Minerals Ltd (ASX:L1M, FRA:YZ1) has defined two gold target areas within the 5-kilometre Western Zone of its wholly owned Mt Turner Project in northern Queensland.
The northern target comprises a 1,000-metre gold anomaly associated with a broader 1,400-metre multi-element footprint. The gold anomaly remains open to the south and east.
Four sub-parallel gold-in-soil trends extending for 200–300 metres have been outlined in the southern target area, with a peak result of 330 parts per billion gold.
Rock-chip sampling returned 1.19 g/t gold and 38.8 g/t silver from mineralised rhyolite breccia. Historical reconnaissance sampling produced individual results of up to 15.35 g/t gold, 198 g/t silver and 22% copper.
Lightning plans to undertake a low-cost follow-up program during the current exploration season.
Nova reports progress on Alaska access road
Nova Minerals Corp (ASX:NVA, NYSE-A:NVA, FRA:QM30) has reported that geotechnical drilling is underway for the proposed West Susitna Access Road in Alaska.
The Alaska Industrial Development and Export Authority has authorised up to US$25 million to advance drilling and other project work during 2026 and 2027.
The planned 78.5-mile, all-weather road would connect Nova’s Estelle Gold and Critical Minerals Project with its proposed antimony refinery at Port MacKenzie.
It would link with a separate 22-mile Alaska Department of Transportation and Public Facilities road project, including a bridge across the Susitna River, to provide access to the existing road network.
Most of the 2026 geotechnical drilling at key material sites and bridge crossings has been completed or is nearing completion, while several environmental studies have also been concluded.
St George starts Araxá pilot study
St George Mining Ltd (ASX:SGQ, FRA:S0G, OTC:SGQMF) has begun pilot-scale beneficiation testing on material from its wholly owned Araxá Niobium and Rare Earths Project in Minas Gerais, Brazil.
The four-to-six-week study at CIT-SENAI is using about 9 tonnes of near-surface saprolite material. It follows initial flotation work that produced a high-grade niobium concentrate and rare-earth-enriched tailings.
Locked-cycle testing will evaluate recycle streams to further optimise grades and recoveries. The niobium concentrate will undergo downstream testing targeting ferroniobium, while the tailings will be assessed for products including mixed rare earth carbonate or rare earth oxalate.
Results are expected in the fourth quarter of 2026 and will support development of a potential dual niobium and rare earth processing flowsheet.
Construction of St George’s own pilot plant has also started following receipt of the required environmental and building permits.
Tamboran begins gas facility commissioning
Tamboran Resources Corporation (NYSE:TBN, ASX:TBN, OTC:TBNRL, FRA:O8R)has begun commissioning the Sturt Plateau Compression Facility using gas from wells on the Shenandoah South 2 pad.
The facility is owned by a 50/50 joint venture between Tamboran and Daly Waters Infrastructure and will process gas from the Shenandoah South Pilot Project for the Northern Territory market.
It will have capacity to process up to 50 terajoules per day, including 40 terajoules contracted to the Northern Territory Government under a long-term take-or-pay agreement.
Construction remains on schedule and within the gross P50 budget of A$141 million.
Tamboran has separately signed a non-binding memorandum of understanding with Liberty Energy to extend their hydraulic fracture stimulation and wireline services relationship in the Beetaloo Basin.
Solis starts Cinto copper drilling
Solis Minerals Ltd (TSX-V:SLMN, ASX:SLM, OTCQB:SLMFF, FRA:08WA) has commenced diamond drilling at its wholly owned Cinto Copper Project in southern Peru.
The initial program will comprise about five holes for 2,500 metres, testing potential copper porphyry mineralisation identified from coincident geochemical and geophysical targets.
Priority areas include three targets outlined by an induced polarisation survey and zones associated with surface samples grading as high as 8.7% copper.
Cinto is close to several large copper operations, including Toquepala, Quellaveco and Cuajone.
Drilling will run alongside Solis’ program at the Mandacaru Lithium Project in Brazil, where assay results are expected during September.