Chilwa Minerals Accelerates Drilling and Expands Lab Capacity Amid Strong Cash Position

Exploration Momentum Builds with Sonic Drilling

Chilwa Minerals Limited (ASX: CHW) has reported significant progress in its March 2025 quarterly activities, underscoring its commitment to advancing the Chilwa Critical Minerals Project in Malawi. The company has successfully deployed two sonic drilling rigs at the Mpyupyu and Bimbi deposits, achieving an average drilling rate of approximately 500 metres per week. Over 2,000 metres have been completed at Mpyupyu, with an additional 1,000 metres drilled at Bimbi, despite some weather-related interruptions.

This drilling activity is critical as Chilwa targets resource upgrades and aims to refine its understanding of the deposits’ potential. The Mpyupyu site, notable for its inferred deposits totalling over 20 million tonnes at varying grades, represents the project’s second-largest mineral sands resource.

Strategic Shift to South African Assay Laboratory

In a move to accelerate assay turnaround times, Chilwa has transitioned its assay work to LightDeepEarth (LDE), a Pretoria-based laboratory with a strong reputation servicing major African mining operations. This change addresses previous delays of up to six months experienced with the former provider. LDE will now handle assays for both Heavy Mineral Sands (HMS) and Rare Earth Elements (REE), streamlining the company’s analytical processes.

The company’s Competent Person, Mark Burnett of AMC Consultants, has approved the QA/QC protocols at LDE, ensuring data integrity as assay results for recent drilling batches are awaited.

Laboratory Expansion and Local Workforce Development

Responding to the increased drilling activity, Chilwa has expanded its sample preparation laboratory in Zalewa to operate two shifts, effectively doubling technician capacity. This expansion not only supports the operational demands of three rigs but also reflects Chilwa’s commitment to local community engagement by employing and training 16 local Malawian technicians.

The laboratory is equipped to prepare samples for both HMS and REE, aligning with the company’s twin parallel strategy to develop these commodities simultaneously. This dual approach is supported by dedicated geology teams and specialized drilling equipment tailored to each mineral type.

Positive Metallurgical and Exploration Results

Metallurgical testing at the Mposa deposit has yielded encouraging results, with the sands lithological unit showing approximately 90% valuable heavy minerals, including significant ilmenite and zircon content. These findings bolster confidence in the deposit’s economic potential.

Meanwhile, exploration for Rare Earth Elements and Niobium continues to advance. Soil sampling across 47 airborne geophysical anomalies has produced positive pathfinder geochemistry, supporting the presence of a carbonatite system. Diamond drilling at the Mposa REE target is underway, with results expected in the coming quarter.

Corporate and Government Engagement

Chilwa maintains a robust cash position of AUD 4.8 million, underpinning its exploration and development activities. The company successfully completed an extraordinary general meeting to ratify director and major shareholder participation in a recent capital raise.

Engagement with the Malawi government remains strong, with ongoing discussions regarding the Mining Development Agreement. The newly appointed Minister of Mines, Kenneth Zikhale Ng’oma, has expressed support for the project, reflecting the government’s broader strategy to boost mining alongside agriculture and tourism.