Audalia Completes 28-Hole Drilling, Raises $2M to Fund Medcalf Project

Exploration Progress at Medcalf

Audalia Resources Limited (ASX: ACP) has reported the completion of a reverse circulation (RC) drilling program at its Medcalf Project’s Egmont Prospect in Western Australia. The program, comprising 28 holes totaling 946 metres, was designed as a step-out from the 2022 JORC resource and successfully delineated pyroxenite mineralisation over a 250-metre strike length. This zone contains vanadium, titanium, and iron mineralisation, key elements for the company’s strategic focus.

Samples from each metre drilled have been dispatched to Intertek’s Perth laboratory for assay, with results anticipated in the upcoming quarter. These results will be critical in confirming the extent and grade of the mineralisation, potentially underpinning future resource upgrades and development plans.

Strategic Location and Project Overview

The Medcalf Project is situated approximately 470 kilometres southeast of Perth near Lake Johnston, within the southern end of the Archaean Lake Johnston greenstone belt. This geological setting is notable for its mineral potential, lying between significant mining regions such as Norseman-Wiluna and Forrestania-Southern Cross greenstone belts. The project area covers 38 square kilometres, including granted exploration licences, miscellaneous licences, general purpose licences, and a mining lease, all held 100% by Audalia.

Financial Position and Corporate Developments

On the financial front, Audalia has markedly improved its liquidity position. The company ended the quarter with $1.46 million in cash and cash equivalents, a substantial increase from $41,000 at the previous quarter’s end. This improvement follows a $2 million placement of 100 million shares at $0.02 each to a sophisticated investor, providing a vital capital injection to fund ongoing exploration and evaluation activities.

During the quarter, Audalia expended $505,000 on capitalised exploration and evaluation, reflecting its commitment to advancing the Medcalf Project. Payments to related parties, primarily for geological and engineering consulting services, remained consistent with prior quarters, underscoring operational continuity.

Funding Outlook and Operational Continuity

The company continues to assess funding alternatives to ensure the sustainability of its operations at Medcalf. With a total loan facility of $6 million available, including unsecured related party loans extended to July 2025, Audalia appears well-positioned to manage near-term financial obligations. However, the company’s future progress will hinge on the forthcoming assay results and its ability to secure further funding if required.

CEO Brent Butler, a seasoned geologist with over 40 years of experience, has provided his endorsement of the exploration results and the company’s reporting, lending confidence to stakeholders about the technical and corporate governance standards in place.

Looking Ahead

As Audalia awaits assay results from the Egmont drilling program, the market will be watching closely for indications of resource expansion or grade improvements. The company’s strengthened cash position and access to loan facilities provide a buffer as it navigates the next phase of exploration and potential development. How Audalia leverages these results and funding options will be pivotal in defining its trajectory in the competitive vanadium-titanium-iron sector.