Nimy adds new key prospect for unique WA gallium discovery

Nimy Resources has identified outcrop similar to its exciting gallium discovery, as the prospectivity of its Mons belt continues to grow.

New gallium targets are emerging for Nimy at the Block 3 discovery. Pic: Getty Images

• Nimy Resources finds new gallium target ~480m from Block 3 East prospect in WA

• Chlorite schist outcrop will be fast-tracked for Phase 3 drilling as Phase 2 drilling to define a maiden resource continues

• Company aiming to become key distributor of critical semi-conductor ingredient controlled by China

 

Special Report: A landmark gallium find in a new greenstone belt in WA could be larger than first thought, with Nimy Resources announcing a new outcropping chlorite schist just 480m east of its Block 3 discovery.

Block 3 is part of the Mons greenstone belt, northwest of the Forrestania nickel and lithium district and around 370km north-east of Perth in WA’s Wheatbelt.

Exploration here has uncovered a unique gallium opportunity, which could eventually lead to the junior becoming the first primary producer of the metal in the West.

Interest in the specialty metal – a key component in computer chips critical to electronics, AI and defence – has surged since market leader China initiated export controls in 2023 in a major blow of the US-China trade war.

However, production is almost entirely sourced as a by-product of alumina and zinc refining.

Nimy Resources (ASX:NIM) is hoping to change that with its Block 3 project, where it has uncovered grades of gallium in drilling far higher than those typically associated with bauxite deposits.

Block 3 covers 3km by 1.5km dead in the centre of the 90km by 30km Mons belt, with an exploration target of 9.6-14.3Mt at 39-78ppm Ga.

Mineralogical assessments by the CSIRO show the mineralisation is likely contained within chlorotised schist, a style of deposit from which gallium has been extracted from one mine in China, and which CSIRO thinks could run between 400-800ppm gallium.

That could present an opportunity to significantly upgrade the economic prospects of a future resource – planned to be compiled in the coming months – through ore sorting.

Nimy has found a new target close to 500m from its Block 3 gallium discovery in WA. Pic: NIM

New extension

It’s important to note the outcropping chlorite schist is yet to be drill-tested.

That means it’s not yet clear what mineralisation lies within it.

But with just 10% of the broader prospect area tested to date and this outcrop lying outside of the reported exploration target area, it shows Block 3 could get much larger as drilling progresses.

Phase 2 drilling at Block 3 East is nearing completion, with Nimy’s confidence in the new prospect already strong enough to bring forward Phase 3 drilling to test the newly interpreted extension.

“The discovery of chlorite schist 480m to the east of 25PH024 (Nimy’s initial discovery drill pad) has the potential to add significantly to the Block 3 gallium resource once confirmed and drill tested,” Nimy managing director Luke Hampson said.

“Our immediate task is to incorporate the area to the Phase III drill program and confirm the observations of our geologists on the ground that the schist is mineralised and expands our gallium footprint significantly to the east.

“Nimy remains focused on delivering a JORC compliant gallium resource to underpin the development of our high-grade gallium discovery at Block 3.”

Emerging market

Gallium was once produced in WA, with French firm Rhone-Poulenc opening a plant adjacent to Alcoa’s Pinjarra alumina refinery in the late 1980s.

But the market was small and niche at the time for the commodity, which sits on the critical minerals list of the US, EU, Australia, India, Japan, Korea and UK.

While the market was worth US$2.45bn in 2024, it could grow to US$21.5bn within a decade, highlighting the size of the prize for early movers like Nimy.

The company is well-capitalised after raising $2.75m last week to bankroll drilling at Mons, with the first samples from form the Phase 2 program already at the labs for assay.

Metallurgical testwork has also begun in partnership with Curtin University and its famous WA School of Mines.

This article was developed in collaboration with Nimy Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.