Operational Setbacks Stall Barra Lithium Drilling as Summit Focuses on Equador Expansion

Equador Project Permitting and Exploration Progress

Summit Minerals Limited (ASX:SUM) has taken decisive steps forward in its critical minerals portfolio with notable advancements in its Brazilian Equador Niobium and Tantalum Project. The company has submitted all necessary documentation for stage 1 drilling permits, a key regulatory milestone that paves the way for on-ground exploration activities expected to commence in early 2025.

Despite the permitting process extending longer than initially anticipated, due to the project spanning three municipalities, Summit’s in-country legal advisors have successfully navigated these complexities, positioning the company to begin drilling pending approval. This regulatory progress underscores Summit’s methodical approach to unlocking value in high-demand commodities.

Encouraging Assay Results Bolster Project Potential

Complementing the permitting progress, Summit reported highly encouraging assay results from the recently acquired Quadrangle tenement, which adjoins the Equador North mining lease. Surface samples revealed niobium pentoxide (Nb2O5) grades exceeding 40% in some instances, alongside tantalum pentoxide (Ta2O5) and significant concentrations of rare earth elements (PREO). These results confirm the continuity of mineralised pegmatite formations across the expanded project area, enhancing the overall prospectivity.

To further delineate the mineralisation, Summit completed a drone-based aero-magnetic survey over the entire Equador Project during the quarter. While the pegmatites themselves are non-magnetic, their host rocks exhibit strong magnetic signatures, enabling the company to map strike directions and structural trends with unprecedented detail. This geophysical insight will be instrumental in guiding future drilling campaigns and resource definition.

Metallurgical Testing and Expanded Sampling Plans

Summit has engaged Perth-based Independent Metallurgical Operations (IMO) to conduct a metallurgical separation test program on samples from the bulk sampling campaign completed in September 2024. IMO’s expertise in niobium and rare earth element processing is expected to provide critical data on mineral separation and recovery potential, informing both the design of upcoming drilling programs and preliminary economic assessments.

Encouraged by assay outcomes, the company plans to undertake additional bulk sampling in 2025 across the newly acquired northern tenements. This expanded sampling will deepen geological understanding and support the planning of a comprehensive drilling program across the Equador tenements.

Barra Lithium Project Drilling Temporarily Suspended

In parallel, Summit initiated its maiden drilling program at the Barra Lithium Project, located approximately 10km west of its Juazeirinho Niobium Project. The Barra tenements are strategically positioned adjacent to an active lithium mine, with previous mining operations confirming the presence of lithium-bearing spodumene pegmatites.

Drilling commenced in December 2024 with plans for up to 3,000 meters of reverse circulation drilling aimed at tracing pegmatite extensions along strike. However, after just 24 meters, the program was interrupted due to hydraulic pump failures compounded by mechanical parts shortages and staff availability during the holiday period. As a result, drilling has been suspended and will be reassessed in 2025 in the context of other exploration priorities.

Corporate Developments Strengthen Leadership

Summit Minerals also announced key leadership changes during the quarter. Peter Allen, a mining executive with over two decades of experience in critical minerals, was appointed Non-Executive Chair effective 31 December 2024. Jamie Wright joined as a Non-Executive Director in October 2024, bringing valuable expertise from his tenure leading Global Lithium Resources Limited through an IPO and growth phase. These appointments reflect Summit’s commitment to strengthening governance as it advances its exploration agenda.

Summit’s Managing Director, Gower He, emphasised the company’s strategic focus: "Our achievements this Quarter reflect Summit Minerals' commitment to strategically advancing our portfolio of critical mineral projects. The progress at the Equador Niobium and Tantalum Project, including the submission of stage 1 drilling permits and the completion of aero-magnetic surveys, demonstrates our systematic approach to unlocking value in high-demand commodities. Due to rig mechanical issues, it is unfortunate the opportunistic scout drilling program at Barra was not completed. 2025 will be a big year for Equador as we focus our energy and efforts to fully explore the now expanded Equador Nb/REE Project."