DY6 Metals Uncovers High-Grade Gallium at Tundulu Project in Malawi

Discovery Context

DY6 Metals Ltd (ASX: DY6) has announced a compelling new chapter in its exploration narrative with the identification of high-grade gallium mineralisation at the Tundulu Rare Earth and Phosphate project in Malawi. This revelation emerged from a detailed review of historical drilling data, which uncovered gallium grades from surface extending to significant depths within the carbonatite ring complex.

Significant Intercepts and Geological Setting

The standout intercepts include a remarkable 74 metres at 93.26 grams per tonne (g/t) Ga2O3 starting from 72 metres depth, featuring a 14-metre section grading 202.79 g/t Ga2O3 and a peak assay of 310.46 g/t Ga2O3. Other notable intersections from surface include 53 metres at 72.79 g/t Ga2O3 and 30 metres at 94.63 g/t Ga2O3, underscoring the deposit’s high-grade nature. The Tundulu project is geologically defined by a carbonatite ring complex within the Chilwa Alkaline Province, comprising multiple igneous centres with complex structural features that have influenced mineralisation distribution.

Exploration and Metallurgical Progress

Despite these promising results, only about 40% of the highly prospective area has been drill-tested, leaving substantial upside potential for further discovery. Gallium mineralisation remains open at depth, with some of the highest grades occurring within fresh rock below saprolite clays. DY6 has commissioned preliminary metallurgical testwork on bulk samples to assess the feasibility of producing separate rare earth and phosphate concentrates, with results anticipated in the coming weeks. This step is critical to understanding the economic viability of extracting gallium alongside rare earth elements.

Market Dynamics and Strategic Implications

The timing of this discovery is particularly significant given the recent surge in gallium prices, driven by escalating demand in the electronics and semiconductor sectors. Currently, global gallium supply is heavily reliant on China, which controls the vast majority of production. DY6’s findings at Tundulu could position the company as a strategic player in diversifying supply sources for this critical metal. The positive correlation observed between gallium and total rare earth oxides (TREO) in the deposit further enhances the project’s appeal.

Next Steps and Outlook

DY6 plans to continue exploration efforts, including rock chip sampling and resampling of historical trenches, while integrating and validating incomplete historical data. The company’s ongoing metallurgical testwork and future drilling campaigns will be pivotal in defining the resource and advancing the project towards development. Investors will be watching closely as DY6 seeks to unlock the full potential of Tundulu’s rare earth and gallium resources amid a tightening global supply landscape.