Morella Drills Up to 0.59% Rb2O and 255ppm Li2O, Secures A$1.4M Capital Raise
Morella Corporation reports significant rubidium and lithium mineralization at its Mt Edon and West Wodgina projects, backed by a successful A$1.4 million capital raise to accelerate exploration in Australia and Nevada.
- Significant rubidium mineralization in 15 of 17 drill holes at Mt Edon
- Lithium soil assays up to 255ppm at West Wodgina, identifying five new targets
- Raised approximately A$1.4 million to fund exploration and development
- Strategic collaboration with Interra Resources strengthens lithium asset evaluation
- Ongoing permit renewals and project advancements in Nevada
Exploration Breakthroughs at Mt Edon
Morella Corporation Limited (ASX: 1MC) has unveiled compelling results from its December 2024 quarter activities, spotlighting its Mt Edon Project in Western Australia. The company’s maiden Reverse Circulation drilling program at Mt Edon intersected pegmatites in 15 out of 17 holes, with rubidium oxide (Rb2O) grades reaching up to 0.59% and lithium oxide (Li2O) up to 0.63%. These figures not only surpass historical drilling from 2002 but also reveal a substantial expansion of mineralized zones, particularly within the northeast cluster and the main pegmatite body.
Mt Edon’s proximity to Everest Metals’ recently defined world-class rubidium resource adds strategic value, positioning Morella to potentially delineate a significant mineral resource. Rubidium, designated a critical mineral by the US Geological Survey, is scarce globally and increasingly sought after for advanced technologies including telecommunications, quantum computing, and emerging battery applications.
New Lithium Targets at West Wodgina
Complementing its rubidium success, Morella identified five new lithium targets at the West Wodgina Lithium Project through an extensive soil sampling program. Assays peaked at 255ppm Li2O, reinforcing the prospectivity of this tenure located near the world-class Wodgina Lithium Operation. The company plans to follow up with detailed assessments and drilling to validate these anomalies, aiming to capitalize on the growing demand for lithium in battery manufacturing.
Capital Raising and Strategic Partnerships
To underpin its exploration momentum, Morella successfully raised approximately A$1.4 million through a share placement to institutional and sophisticated investors. Notably, Interra Resources Limited, a Singapore-listed petroleum exploration company pivoting towards renewable energy, participated via a shortfall placement, strengthening the partnership and providing additional funding for lithium asset evaluation. The Morella board also plans to subscribe for shares subject to shareholder approval, signaling strong internal confidence in the company’s trajectory.
Advancements in Nevada Projects
Beyond Australia, Morella has renewed key permits for its Fish Lake Valley and North Big Smoky projects in Nevada, ensuring continuity of exploration activities. The company also secured a two-year extension on drilling permits, allowing further work under existing approvals. Rehabilitation of previous drill sites has been completed to the satisfaction of regulatory authorities, reflecting Morella’s commitment to responsible exploration practices.
Outlook and Next Steps
Looking ahead, Morella intends to intensify mapping and drilling at Mt Edon to better define mineralization extents and test strike and depth extensions. At West Wodgina, maiden drilling programs are planned to investigate the newly identified lithium targets. The company’s robust cash position, supported by recent capital raising, provides a runway of approximately 1.5 quarters at current expenditure levels, with management confident in securing additional funding as needed.
Morella’s dual focus on rubidium and lithium exploration in Tier 1 jurisdictions, combined with strategic partnerships and disciplined capital management, positions it well to contribute critical minerals essential for the global energy transition.
Bottom Line?
Morella’s strong drill results and fresh capital set the stage for accelerated exploration, but market dynamics and further assay outcomes will be key to watch.
Questions in the middle?
- How will Morella prioritize its exploration budget between rubidium and lithium targets?
- What are the timelines and expected scale for upcoming drilling programs at Mt Edon and West Wodgina?
- How might evolving battery technologies impact demand for rubidium and lithium from Morella’s projects?