According to a report from MiningNews.net, the Phase 2 drilling results from Nimy Resources' Mons project in Western Australia suggest the potential presence of a world-class gallium deposit, with the first four holes confirming continuous mineralization from the surface to a depth of 240 meters.
Analysis of key samples revealed a gallium grade of 0.0055% from the surface to a depth of 240 meters. Among them, a 56-meter ore body was encountered at a depth of 60 meters, with a grade of 0.0101%. The richest ore section is 1 meter thick, with a grade of 0.0285%.
Several holes did not penetrate the ore body.
The drilling focused on the eastern, western, and southern parts of the initial exploration target area, aiming for an ore reserve of 9.6 million to 14.7 million mt, with a grade of 0.0039-0.0078%, which is considered high-grade globally.
Luke Hampson, the company's manager, stated that they are prepared to complete the first resource estimate by the end of the year, and the value may significantly exceed the exploration target, especially considering that surface mapping has expanded the study area, and the two southernmost holes did not penetrate the ore body.
Unexpected discoveries were also made in two holes in the central part of Block 3, extending the strike length of the entire ore zone to 1.5 kilometers.
"To date, we have found high-grade gallium hosted in chlorite schist, far from the known mineralized areas," he said.
The company initiated Phase 2 drilling earlier this year. Given the discovery of new significant areas, the company will accelerate Phase 3 drilling based on preliminary reports.
Nevertheless, only a small portion of this 3 km by 1.5 km area has been verified.
Hampson was puzzled that exploration companies like Nimy have received calls from gallium buyers and circuit manufacturers who are constantly seeking new gallium sources.
"The Western world will not find any significant gallium supply for at least a year. If the market performs as expected, the associated gallium from zinc or bauxite will not meet the demand," he said.
"This is a sign of desperation, especially when end-users contact exploration companies."
Hampson revealed that the company has been negotiating possible development cooperation with companies from Europe, the US, and Asia.
Given the relatively small market size of gallium, securing appropriate downstream financing and technology partners is crucial.
Last year, the global demand for gallium was approximately 708 mt, and it is expected to reach 1,180 mt by 2030. Therefore, the first company to deliver a feasible project will become a significant producer.
A production plant with an annual output of 40-50 mt of gallium is expected to require an investment of $150 million, but the returns are evident.
Growing Demand
Nimy Resources collaborated with the Commonwealth Scientific and Industrial Research Organisation (CSIRO) of Australia to study the characteristics of its minerals, worked with Curtin University on beneficiation and smelting processes, and signed a non-binding agreement with M2i of the US to assist in the development and supply of gallium to the US government.
Nimy Resources initially engaged in copper-nickel exploration and discovered gallium while analyzing old copper mine prospects. There is also potential to discover base metals and rare earth elements around the Block 3 discovery.
The Mons Project is located within an 80-kilometer-long mineralized belt known as the Karroun Hill Belt.
Small Mining Field
Nimy is one of four companies listed on the Australian Securities Exchange (ASX) that have discovered gallium deposits. The other three companies include:
Victory Metals, which identified gallium resources in a clay-type deposit with 247.5 million mt of ore and a total rare earth oxide grade of 0.052%, containing 4,788 mt of gallium metal with a grade of 0.0026%.
Terrain Minerals, which initially delineated gallium resources in the Larin's Lane clay-type deposit with ore reserves ranging from 25 to 33 million mt and grades ranging from 0.0019% to 0.0021%.
RareX, which delineated high-grade gallium resources in the Cummins Range rare earth-gallium deposit in Western Australia and is considering the construction of a gallium smelter.
The four projects vary in terms of ore minerals and risk-return profiles.
