Australasian Metals Limited has identified substantially elevated gallium (Ga) levels during a re-evaluation of data from its May Queen South Bauxite project. These findings have the potential to significantly increase the value of the May Queen South Bauxite deposits.
The increasing demand for gallium in the semiconductor industry is anticipated to open significant opportunities for the company.
Results showing elevated gallium levels
The May Queen South Bauxite Project, strategically situated in central Queensland, benefits from proximity to rail links that offer convenient access to both the Port of Bundaberg and the Port of Brisbane. The project boasts a JORC 2012-compliant Inferred Mineral Resource Estimate (MRE) of 54.9 million tonnes, with grades of 37.5 per cent total Al₂O₃, 5.2 per cent TiO₂, and 7.9 per cent reactive SiO₂.
Considering rising gallium prices, the company reassessed samples from last year’s exploration program using ALS’s ME-MS85 analytical method to identify elevated gallium content.
Data source: Company update
Sample Q23767, taken from an outcrop of brittle lateritic rock, yielded the highest gallium grade, measuring 145.5 g/t.
source: Company update
Gallium prices on the rise
Gallium prices have surged significantly in recent years, driven by increasing demand from the electronics and semiconductor industries. This versatile metal plays a critical role in producing compound semiconductor wafers used in integrated circuits, LEDs, laser diodes, photodetectors, and solar cells. Its unique properties, including a low melting point and the ability to form highly valuable compounds, make gallium essential for cutting-edge technologies.
China, which accounts for approximately 98 per cent of the global gallium supply, has further tightened its grip on the market. Recent factors like price-inelastic demand and China's export restrictions, introduced in August 2023, have exacerbated supply shortages. As a result, gallium prices have soared by 115.12 per cent since 2021, more than doubling over the period.
Gallium price worldwide from January 2018 to January 2024 (in U.S. dollars per kilogram)
Source: Statista
Here's what lies ahead for the company
Having secured recent historical data, including initial metallurgical test results for the project, the company is now advancing its exploration efforts. Size reduction, scrubbing, and sizing tests were conducted at Core Resources laboratory in Brisbane, using representative bulk samples weighing between 25 and 50 kg from the surface duricrust and bauxite resource. These tests aimed to explore the feasibility of producing a 'premium quality' Direct Shipping Ore (DSO) product through basic crushing, scrubbing, and screening techniques.
In addition, Atlantic Lithium Limited previously archived the sample pulps collected during resource drilling, which A8G is now retrieving. The company plans to reassess these samples and integrate the findings into its resource model to project the potential gallium resources within the current mineral resource estimate.
Furthermore, the company is leveraging its established network within Asia's downstream processing and offtake sectors. Active discussions are underway with potential partners and customers to solidify future collaborations.
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