Western Yilgarn picks up New Norcia bauxite-gallium asset

WYX is leveraging the gallium supply squeeze following China’s export restrictions by securing the New Norcia project, which also boasts bauxite exposure.

Western Yilgarn believes New Norcia provides scalability and the potential to increase bauxite tonnage and grade with gallium as a valuable byproduct. Pic: Getty Images

• Western Yilgarn secures the New Norcia bauxite-gallium project in WA

• It is strategically located close to major ports and infrastructure

• The company hopes to exploit the increasing demand for DSO bauxite with the gallium providing a potential credit to the project economics

Special report: Western Yilgarn is tapping into rising bauxite prices and opportunities created by the tightening gallium market with the acquisition of the New Norcia project.

The company has applied for an Exploration Licence (E70/6705) within WA’s Darling Range bauxite mineral field, about 25km north of its 97.1Mt Julimar West bauxite asset north of Perth.

Surface bauxite mineralisation has been defined over a 4.5km by 2km area at New Norcia with gallium mineralisation defined over 4km by 2.3km within laterite, typical of Darling Range bauxite deposits.

Extensive rock chip sampling and drilling in the eastern portion of the tenure delineated high-grade gallium results up to 134.4g/t from surface as well as up to 50.4% total aluminium oxide.

Western Yilgarn (ASX:WYX) reckons the project is attractively positioned to exploit the increasing demand for DSO bauxite – high-quality bauxite ore that can be shipped directly to a refinery for aluminium production – given its proximity to Perth as well as major ports and infrastructure including the Millendon Junction rail line.

Long-term gallium supply outside China

Gallium is a critical metal used in the defence industry and computer chip, semi-conductors, transistors, including light emitting diodes (LED), fibre optic cables, and solar cell and electronic circuitry.

During December 2024, China imposed a ban on exports of gallium, germanium and antimony to the United States, a day after the Biden administration imposed expanded restrictions on the sale of advanced US technology to China.

It isn’t found in its pure form but can be obtained as a by-product of aluminum and zinc production.

It is anticipated that US and European semiconductor chip makers will seek long-term supply contracts with future gallium suppliers outside China, including Australia.

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‘Potential for additional resource growth’

WYX director Pedro Kastellorizos said the New Norcia project provided the company with scalability and excellent potential to increase bauxite tonnage and grade through further exploration and metallurgical testwork.

“The location of the current resource is within trucking distance of a multi-user railway at a time of record alumina and bauxite prices,” he said.

“The extensive bauxite zones have the potential for additional resource growth along strike and depth, concentrating to the west and south of the current tenure.

“Western Yilgarn will be planning the next phase of drilling within the project’s untested zone with a view of expanding the current mineralised footprint.”

Based on the high-grade gallium delineated through drilling, Kastellorizos said the metal may also provide a substantial credit to the economics of the project.

What now?

Based on an extensive data review of surface and drilling geochemistry, WYX believes the project boasts exceptional growth potential with multiple targets west and south of the current tenure areas.

Regional mapping and interpretation of the Western Australia Geological Survey has delineated laterite and pisolitic gravels in which the bauxite occurs.

These areas will be systematically targeted as first-pass exploration.

All future exploration will focus on delineating the lateral and depth extent of the gallium mineralisation with a view of producing a JORC compliant resource.

This article was developed in collaboration with Western Yilgarn, 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.

Originally published as Western Yilgarn picks up New Norcia bauxite-gallium asset