Nimy Resources intersects gallium host rock at Block 3 discovery

Nimy Resources intersected gallium host rock during drilling at Block 3 project, which could become WA’s first producing mine.

The company is awaiting assays but says the host rock indicates the potential for high-grade gallium mineralisation. Pic: Getty Images.

• NIM hits gallium host rock at Block 3 discovery in WA

• Gallium is a critical mineral that has surged since China imposed export restrictions

• The company has immediately moved to the third phase of drilling.

Special Report: Nimy Resources has intersected gallium host rock during phase 2 drilling at its Block 3 project in WA.

The project is in the Mons greenstone belt, northwest of the Forrestania nickel and lithium district, where recent exploration uncovered the gallium opportunity.

This could lead to the junior becoming the first primary producer of the critical mineral in WA.

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.

Production is almost entirely sourced as a by-product of alumina and zinc refining but Nimy Resources (ASX:NIM)is hoping to change that with its Block 3 project, where it has uncovered gallium grades far higher than those typically associated with bauxite deposits.

Nine holes out of a total of 11 in the latest drilling program hit chlorite/mafic schist – which has been identified by CSIRO as the host rock for high-grade gallium mineralisation at the project.

While assays are pending, the company is confident of the potential to expand the extent of the discovery, and identify additional chlorite schist material along trend.

Unlocking full extent of gallium discovery

Notably, this style of deposit is the same from which gallium has been extracted from a mine in China and CSIRO thinks it could run between 400-800ppm gallium.

That could present an opportunity to significantly upgrade the economic prospects of a future resource through ore sorting.

Due to the success of second phase drilling, the company has immediately moved to phase 3, looking for gallium mineralisation beyond the original exploration target as well as the recently discovered outcropping schist.

In the background, Nimy is also conducting metallurgical testwork and progressing early-stage downstream discussions, an integrated approach that the company says reflects its commitment to unlocking the full potential of this emerging critical minerals opportunity.

“The consistent intersections of schistose material across completed drill holes at Block 3 is an exciting development that continues to reinforce the scale and potential of this high-grade gallium prospect,” managing director Luke Hampson said.

“Assays are pending and phase 3 drilling has commenced, we are well positioned to rapidly advance what is a significant critical minerals discovery in Western Australia.”

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.