WA Resources Strengthens Board and Advances Luni Project Amid Environmental and Technical Challenges
WA Resources Ltd reports significant progress in its West Arunta Project, delivering promising drilling results and metallurgical testwork that pave the way for an updated Mineral Resource estimate in 2025.
- Completed approximately 50,000m of drilling at Luni, focusing on high-grade northeast zone
- Metallurgical testwork yields high-grade niobium concentrate with 66.9% Nb2O5 at 99.9% recovery
- Ongoing environmental, hydrogeological, and geophysical studies support pre-development
- Appointment of Lee Bowers as Non-Executive Director strengthens corporate governance
- Cash balance remains robust at approximately $86.5 million as of December 31, 2024
Exploration Momentum at West Arunta
WA Resources Ltd (ASX: WA1) has delivered a robust quarterly update for the period ending December 31, 2024, underscoring its commitment to advancing the West Arunta Project in Western Australia. The company has now completed around 50,000 metres of drilling at the Luni niobium deposit, with a particular focus on resource definition in the north-eastern high-grade zone. This drilling campaign, employing diamond, sonic, and reverse circulation methods, aims to underpin an updated Mineral Resource estimate anticipated in the first half of 2025.
Notably, recent assay results have reinforced the continuity and quality of the niobium mineralisation, with standout intersections such as 20 metres at 6.4% Nb2O5 from 68 metres and 40 metres at 3.3% Nb2O5 from 65 metres. These findings enhance geological understanding and support ongoing geo-metallurgical domaining efforts.
Metallurgical Advances Bolster Project Viability
Complementing the drilling progress, WA Resources has reported encouraging metallurgical testwork outcomes. Initial variability testing on a composite sample from three drillholes in the northeast zone demonstrated excellent beneficiation results, achieving a locked cycle concentrate grade of 50.4% Nb2O5 at 57.6% recovery using a two-stage flotation process.
Further refining testwork has produced a clean, high-grade niobium concentrate with 66.9% Nb2O5 at an impressive 99.9% recovery rate. This refined concentrate meets the company’s target specifications, enabling progression to the final conversion stage into a ferroniobium end-product. These metallurgical milestones are critical in validating the proposed processing flowsheet and advancing the project towards development.
Supporting Studies and Corporate Developments
Beyond drilling and metallurgy, WA Resources continues to advance environmental surveys, hydrogeological investigations, and geophysical studies, all essential for comprehensive project evaluation and regulatory compliance. The company maintains active engagement with native title stakeholders and government bodies, reflecting a commitment to responsible development.
On the corporate front, the appointment of Lee Bowers as an independent Non-Executive Director brings seasoned expertise in global resources finance and equity markets to the board. Mr. Bowers’ background, including leadership roles at Macquarie Group and Royal Bank of Canada, is expected to enhance strategic oversight as WA Resources progresses its projects.
Financial Position and Outlook
WA Resources reported a strong cash position of approximately $86.5 million at quarter-end, providing a solid financial foundation to support ongoing exploration and pre-development activities. The company’s expenditure of $8.8 million during the quarter was focused exclusively on exploration and evaluation, with no development costs recorded yet.
Looking ahead, the market will be closely watching the updated Mineral Resource estimate for Luni expected in the first half of 2025, alongside further metallurgical optimisation and variability testing. These developments will be pivotal in shaping the project’s economic potential and investment appeal.
Bottom Line?
With drilling and metallurgical breakthroughs underway, WA Resources is poised to refine its resource base and advance towards development milestones in 2025.
Questions in the middle?
- How will the upcoming Mineral Resource update impact WA Resources’ project valuation and development timeline?
- What are the next steps in metallurgical optimisation to ensure consistent processing performance across the deposit?
- How might ongoing environmental and stakeholder engagements influence permitting and project execution?
