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Nimy Resources adds weight to Block 3 gallium potential

Early geological logging supports the interpretation of a single, continuous mineralised trend running more than 1.5km between Block 3 West and East.

Nimy has expanded gallium potential at Block 3 along strike and at depth, extending west from the defined exploration target. Pic: Getty Images
Nimy has expanded gallium potential at Block 3 along strike and at depth, extending west from the defined exploration target. Pic: Getty Images
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Special report: Preliminary logging from second phase drilling has confirmed the presence of mafic schist zones in all holes in the newly defined Central Zone at Nimy’s Block 3 gallium project in WA.

This work validated extensive gallium-hosting lithologies, with the system remaining open along strike and at depth.

Chlorite schist zones intersected in the Central Zone have been verified by CSIRO as the main lithology associated with high-grade gallium potential at Block 3.

The consistent presence of chlorite schist across all drill holes lends further weight to Nimy’s (ASX:NIM) geological model of a high-grade system as reconnaissance fieldwork continues across the broader Block 3 prospect area.

Preliminary logging of recent intercepts at the Central Zone indicates the mineralised system is potentially continuous from Block 3 West to Block 3 East, totalling more than 1.5km of strike.

Mapping and sampling of further chlorite schist occurrences along strike is being conducted, as well as soil and rock geochemical surveys, with a focus on high-priority anomalies yet to be drill tested.

NIM said these anomalies represented compelling exploration targets and would be incorporated into future drill planning as part of the company’s systematic exploration strategy.

Background on Block 3

Block 3 is within the Mons greenstone belt, northwest of the Forrestania nickel-lithium district, where recent exploration uncovered the gallium opportunity.

The project boasts an exploration target of 9.6-14.3Mt at 39ppm to 78ppm gallium, positioning the company to potentially become Western Australia's first primary producer of the critical mineral.

Gallium, a specialty metal essential for computer chip production and widely used in electronics, AI and defence, has seen rising global interest following China’s 2023 export controls

While most gallium is produced as a secondary output from alumina and zinc operations, NIM is looking to establish a primary source at its Block 3 project, where standout grades have been identified.

Hallmarks of a critical metal discovery

NIM managing director Luke Hampson said the consistent intersection of mafic schist across all Central Zone drill holes indicated the continuity of the primary gallium host unit.

“With mineralisation remaining open along strike and at depth, and step-out drilling now testing newly identified outcropping zones, the project continues to demonstrate the hallmarks of a high-grade, critical metal discovery,” he said.

“As gallium emerges as a priority metal for semiconductors and defence technologies, securing supply is now a strategic imperative for Western economies.

“Block 3 positions Nimy at the forefront of the Western World’s response to this challenge,” Hampson added.

“Looking ahead, Nimy is actively progressing discussions with downstream partners to ensure optimising future processing pathways.”

What else is happening?

Initial holes from the phase 2 drilling program have been submitted to the laboratory for assaying, with phase 3 drilling being submitted to the laboratory in the coming days.

Phase 3 step-out drilling continues, targeting extensions beyond the initial outlined exploration target, which includes a newly identified, outcropping chlorite schist zone.

Reconnaissance exploration is advancing across the broader prospect area, with a focus on expanding the mineralised footprint and delineating additional chlorite schist-hosted targets along strike.

NIM expects the phase 2 drill assays to be released shortly.

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.

Original URL: https://www.theaustralian.com.au/business/stockhead/content/nimy-resources-adds-weight-to-block-3-gallium-potential/news-story/f42bb366ab9d82e6dabdac1d3a0aa392