Trinex Reports A$0.78M Cash, Plans March Drilling at Dudley Lithium Project
Trinex Minerals corrects its quarterly report and reveals promising exploration progress at the Dudley Lithium Project, while managing a lean cash position and leadership changes.
- Correction of rounding error in December 2024 quarterly report
- Key Landowner Access Agreement executed for Dudley Lithium Project
- 1,200 soil samples collected, revealing multiple lithium anomalies
- RC drilling planned for March 2025 quarter
- Cash balance at A$0.78 million with cost-cutting measures underway
Quarterly Report Revision and Corporate Update
Trinex Minerals Limited (ASX: TX3) has issued a revised Appendix 5B for the quarter ended 31 December 2024, correcting a rounding error and providing comprehensive responses to outstanding sections. The company also announced a key leadership change with Ms Su-Mei Sain transitioning from Executive Director to Non-Executive Director while retaining her role as Company Secretary. Managing Director Will Dix has taken a 15% pay cut to support cash flow management amid a tight cash balance of A$0.78 million at quarter-end.
Progress at Dudley Lithium Project
Late November 2024 saw the completion of an extensive 1,200 soil sample program using Mobile Metal Ion (MMI) geochemistry, designed to detect lithium and pathfinder elements such as rubidium, cesium, and tantalum. Results released after quarter-end highlighted multiple strong anomalies coincident with the 80-meter-thick Dudley pegmatite and several other prospective targets across the project area, many in previously unexplored zones obscured by weathering or gravel cover.
Upcoming Drilling and Exploration Plans
Trinex has submitted an Exploration Program for Environment Protection and Rehabilitation (E-PEPR) application for Reverse Circulation (RC) drilling, anticipated to commence in the March 2025 quarter. The drilling will target the identified pegmatites and soil anomalies beneath the weathered surface, aiming to intersect fresh rock at depths of 20-30 meters. The company also plans to extend the MMI soil sampling to fill gaps and expand coverage onto adjacent properties, pending access agreements.
Canadian Lithium and Uranium Projects
Beyond Australia, Trinex continues to advance its Canadian portfolio. The Halo-Yuri Lithium Project in the Northwest Territories is progressing with a Land Use Permit application under government review. The East Yellowknife Lithium Project acquisition is expected to complete in the March quarter, expanding Trinex’s footprint in a prolific lithium region. Additionally, the Gibbons Creek Uranium Project in Saskatchewan remains under an option earn-in agreement, with ongoing geophysical surveys identifying multiple conductors for follow-up.
Financial Position and Outlook
Trinex reported exploration and evaluation expenditure of approximately A$451,000 for the quarter, with no substantive mining or development costs. The company’s cash runway is estimated at under two quarters, prompting active cost management and preparations for a capital raise in the near term. Director payments totaled A$155,000 during the quarter, reflecting the company’s lean operational structure.
Managing Director Will Dix emphasized the significance of the Dudley Project’s early exploration success and the upcoming drilling campaign as pivotal milestones. However, the company’s ability to sustain operations and advance its projects hinges on securing additional funding, a process currently underway.
Bottom Line?
Trinex’s exploration momentum at Dudley is promising, but its tight cash position and upcoming capital raise will be critical to watch.
Questions in the middle?
- Will the upcoming RC drilling at Dudley confirm the lithium anomalies detected in soil sampling?
- How will Trinex manage its cash flow and funding needs beyond the next quarter?
- What impact will the leadership changes have on the company’s strategic direction and execution?
