Cash Constraints Pose Risks as Ausmon Pushes Rare Earths and Base Metals Exploration

Exploration Momentum Builds in Rare Earths and Base Metals

Ausmon Resources Limited has provided a comprehensive update on its exploration activities for the December 2024 quarter, underscoring its commitment to advancing rare earth elements (REE) and base metals projects across multiple Australian jurisdictions. The company is actively preparing for a series of drilling campaigns slated for 2025, targeting promising mineralisation in South Australia, New South Wales, and Queensland.

In South Australia’s Limestone Coast region, Ausmon holds six granted tenements covering over 4,300 square kilometres within the Murray and Otway Basins. These areas are prospective for REEs, particularly within the Loxton/Parilla Sands and Padthaway Formation. The company has submitted Environmental Protection and Rehabilitation Program (EPEPR) applications to the Department of Energy and Mining (DEM) for drilling along road verges at Mt Rough, Kingston, and Wolseley tenements, with plans to commence aircore drilling in the first quarter of 2025.

Notably, at the Parrakie tenement, Ausmon completed two drilling programs in 2024, successfully intersecting the target Loxton/Parilla Sands in all 100 holes drilled. Assay results revealed encouraging total rare earth oxides (TREO) grades, with several intervals exceeding 1,000 ppm TREO and a standout zirconium intersection of 4,400 ppm. These results align with regional resource estimates reported by Australian Rare Earths, reinforcing the area’s potential as a significant REE province.

Base Metals Exploration Near Broken Hill Gains Focus

In New South Wales, Ausmon’s cobalt, lead, zinc, silver, and copper exploration near Broken Hill remains a strategic priority. The company’s five tenements in this region, including Enmore, Eureka, and Mt Darling, cover approximately 685 square kilometres in proximity to established cobalt development projects. While fieldwork was limited during the quarter, Ausmon is preparing to resume reverse circulation (RC) and diamond drilling at the Enmore tenement in the second quarter of 2025, following a revised drilling strategy to overcome previous technical challenges.

Additional exploration efforts include fine fraction soil sampling and geological mapping to refine targets associated with chargeability anomalies identified in recent geophysical surveys. The company is also reviewing historic data to better understand the mineralisation potential within these Palaeoproterozoic rocks, which have demonstrated IOCG and Broken Hill-type mineralisation styles.

Queensland Rare Earths Project Set for Initial Fieldwork

Ausmon’s newly granted Turkey Hill tenement in the Drummond Basin of Central Queensland marks an expansion of its REE footprint. The 320 square kilometre project targets surficial clay and iron-manganese pisolite deposits, potentially enriched by adjacent alkali granitic intrusions known for tin, tungsten, and rare earth elements. The company plans to initiate surface scanning and mapping activities in mid-February 2025, employing portable XRF technology to rapidly assess regolith geochemistry ahead of more detailed drilling.

Financial Position Reflects Exploration Investment and Funding Needs

Financially, Ausmon reported a net cash outflow of $93,000 from operating activities during the quarter, with total exploration and evaluation expenditure amounting to $16,000. The company ended the period with $26,000 in cash and access to an unsecured $1.6 million loan facility, of which $855,000 was drawn. With total available funding of approximately $771,000 and estimated expenditure rates, Ausmon has around six quarters of funding runway, underscoring the need to manage cash prudently as exploration activities ramp up.

Payments to related parties were minimal, reflecting standard director fees and office rent contributions. The company continues to comply with the 2012 JORC Code for reporting exploration results, with competent person statements provided by its consultant geologist, Mark Derriman.

Overall, Ausmon Resources is advancing a multi-pronged exploration strategy focused on high-demand critical minerals, positioning itself to capitalize on emerging opportunities in the rare earths and base metals sectors. The coming months will be pivotal as drilling programs commence and assay results are awaited, potentially unlocking value for shareholders.