Funding Uncertainty Looms as Burley Navigates Approvals and Land Access Challenges
Burley Minerals Ltd reports significant progress in its Western Australian iron ore projects, highlighted by promising high-grade assay results and imminent drilling campaigns, while actively exploring strategic funding options amid recent sector M&A activity.
- High-grade iron ore assays from Cane Bore and Broad Flat Well projects
- Maiden drilling program at Cane Bore pending regulatory and heritage approvals
- Broad Flat Well drilling confirms mineralisation continuity with strong Fe grades
- Chubb Lithium Project in Quebec remains on hold pending ground disturbance permit
- Company assessing strategic funding options amid recent Pilbara iron ore M&A deals
Exploration Progress in Western Australia
Burley Minerals Ltd (ASX: BUR) has delivered a robust update for the December 2024 quarter, underscoring its advancing iron ore exploration efforts in the Pilbara region of Western Australia. The company’s Cane Bore Iron Project, where Burley holds 100% interest, saw the granting of Exploration License E08/3424 in September 2024, enabling a maiden drilling program anticipated to commence in March 2025, pending final approvals.
Geological mapping and extensive rock-chip sampling over the Cane Bore CID (Channel Iron Deposit) areas have yielded encouraging high-grade iron assay results, with samples averaging 50.7% Fe and peaking at 56.9% Fe. These results have identified four drilling targets spanning an 11-kilometre strike and covering more than 5.5 million square meters of iron-ore mesa formations, some rising up to 20 meters above the surrounding terrain.
Broad Flat Well Drilling Confirms Mineralisation
At the Broad Flat Well Iron Project, also 100% owned by Burley, a maiden reverse circulation drilling program completed in July 2024 delivered significant intercepts, including multiple intervals exceeding 50% Fe, with the highest assay reporting 6 meters at 54.5% Fe from surface. These results confirm the continuity of CID-style mineralisation across six target areas, reinforcing the project’s potential as a viable iron ore resource.
Lithium Project in Quebec Deferred
On the lithium front, Burley’s Chubb Lithium Project in Quebec, Canada, remains strategically positioned within a prolific lithium province near operating mines such as Sayona Mining’s North America Lithium operation. While the company secured a ground disturbance permit during the quarter, active exploration work has been deferred, reflecting a cautious approach amid evolving market conditions.
Corporate and Funding Outlook
Financially, Burley reported a cash balance of $763,000 as of 31 December 2024, down from $1.34 million the previous quarter, with additional tax receivables expected to bolster liquidity in the coming months. The company is actively assessing strategic funding options to support its iron ore projects, particularly in light of recent mergers and acquisitions in the West Pilbara iron ore sector, including Fortescue’s takeover of Red Hawk Mining and CZR Resources’ asset sale.
Burley has engaged with potential strategic partners under confidentiality agreements but has yet to formalise binding arrangements. This measured approach aims to balance the need for capital with preserving upside potential for shareholders as exploration advances.
Challenges and Next Steps
Access issues persist at the Yerecoin Iron Project, where Burley holds a 70% interest, due to ongoing land access disputes requiring resolution through warden’s court proceedings. Meanwhile, the company awaits final regulatory approvals for its Cane Bore drilling program and plans to initiate heritage surveys with Traditional Owner groups imminently.
Overall, Burley Minerals is positioning itself to capitalize on its iron ore assets with promising exploration results and a strategic funding review that could unlock further value. The coming quarters will be critical as drilling results and funding outcomes unfold.
Bottom Line?
Burley’s upcoming drilling campaigns and funding decisions will be pivotal in defining its trajectory amid a consolidating Pilbara iron ore landscape.
Questions in the middle?
- Will Burley secure the necessary approvals and commence drilling at Cane Bore as planned in March 2025?
- How will Burley’s strategic funding efforts evolve in response to recent M&A activity in the Pilbara iron ore sector?
- What impact will ongoing land access disputes at Yerecoin have on Burley’s resource development timeline?