Errawarra Faces Funding Crunch While Advancing Lithium and Gold Exploration

Exploration Highlights at Andover West

Errawarra Resources Ltd (ASX: ERW) has reported significant progress in its lithium exploration efforts during the December 2024 quarter, particularly at its Andover West project located 30km southeast of Karratha. The company confirmed two strong anomalous lithium oxide (Li2O) soil trends within the Western Pegmatite swarm, representing a combined 3km strike extension to a known lithium pegmatite zone currently being drill tested by Raiden Resources on adjoining tenements.

These soil anomalies, with peak Li2O values reaching up to 356ppm, align closely with high-grade spodumene mineralisation identified nearby, underscoring the prospectivity of the area. Additionally, Errawarra is assessing gold potential at the White Quartz Hill prospect within the eastern part of the tenement, where historic data suggests a 5km strike of gold-associated structures.

Pinderi Hills JV Unveils Extensive Lithium Anomaly

In the West Pilbara, Errawarra manages a farm-in and joint venture with Alien Metals (AIM: UFO) focused on lithium rights across the Pinderi Hills tenements. The recent reconnaissance sampling program, comprising over 1,000 soil, rock chip, and stream sediment samples, revealed a substantial 6km2 lithium soil and stream anomaly. This footprint is characterized by linear and swarm-like lithium trends, indicative of lithium-bearing pegmatites.

Notably, a pegmatite rock chip sample within this anomaly returned 73ppm Li2O, while an isolated rock chip sample east of the main anomaly reported 288ppm Li2O with associated pathfinder elements such as cesium and tantalum. These findings provide a compelling basis for targeted follow-up exploration in the coming quarter.

Gold and Base Metals Focus at Errabiddy and Other Projects

Errawarra also advanced its gold exploration through a joint venture with Falcon Metals (ASX: FAL) on the Errabiddy project, covering approximately 1,000km2 in a highly prospective craton margin setting. The Olsen Well prospect within this tenure hosts a significant gold-in-soil anomaly extending 3km with peak values of 234ppb Au. Additionally, a new copper-gold soil anomaly at Parrot Bore is under investigation following recent reconnaissance sampling.

While no field activities were conducted at the Fraser Range nickel-copper-PGE project during the quarter, the company is evaluating strategic options including potential divestment or joint ventures. The Binti Binti/Gindalbi gold project continues to show promise with a newly identified gold anomaly under further review.

Financial Position and Forward Outlook

Errawarra reported a cash balance of $451,000 and held approximately $203,900 in tradeable securities as of December 31, 2024, totaling $654,900. The company acknowledges that this funding supports roughly two-thirds of a quarter’s operations at current expenditure levels. Management plans to moderate exploration spending while assessing recent results and refining future programs.

Looking ahead to the first quarter of 2025, Errawarra intends to focus on evaluating the White Quartz Hill gold prospect, ground investigations at Pinderi Hills, follow-up of copper-gold anomalies at Errabiddy, and further assessment of lithium drill results from Raiden Resources. The Fraser Range project remains under strategic review.

Errawarra’s approach reflects a disciplined balance between advancing high-potential green technology metals projects and prudent financial management amid a competitive exploration environment.