DY6 Metals Unveils High-Grade Gallium Potential at Tundulu Project

DY6 Metals has updated its discovery of high-grade gallium mineralisation at the Tundulu Rare Earth and Phosphate Project in Malawi, revealing significant drill intercepts and ongoing metallurgical testwork that could position the company in a critical minerals market dominated by China.

  • High-grade gallium mineralisation identified from surface and at depth
  • Significant drill intercepts include 74m at 93.26g/t Ga2O3 and 14m at 202.79g/t Ga2O3
  • Only ~40% of the prospective area has been drill-tested to date
  • Gallium prices rising due to electronics and semiconductor demand
  • Preliminary metallurgical testwork underway with results expected soon
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Discovery Context and Historical Data

DY6 Metals Ltd (ASX: DY6) has provided an updated announcement on the high-grade gallium potential at its Tundulu Rare Earth and Phosphate Project in Malawi. The update incorporates additional disclosure, including detailed JORC Table 1 information, relating to historical drilling and assay data. The company’s review of historical drill results, primarily from 2014 programs conducted by Mota Engil Minerals & Mining, has uncovered significant gallium mineralisation from surface through to depth.

The historical drilling comprised both diamond and reverse circulation (RC) methods, with over 4,900 assays completed for gallium. Notably, 27.7% of these assays returned gallium oxide (Ga2O3) grades exceeding 40 g/t, highlighting the prospectivity of the Tundulu carbonatite ring complex. However, only about 40% of the highly prospective area has been drill-tested, leaving considerable scope for further exploration.

Significant Drill Intercepts and Mineralisation Characteristics

Among the standout intercepts reported are 74 metres at 93.26 g/t Ga2O3 and 1.56% total rare earth oxides (TREO) from 72 metres depth, including a high-grade 14-metre interval at 202.79 g/t Ga2O3. The highest assay within this interval reached an exceptional 310.46 g/t Ga2O3. Other notable intercepts include 53 metres at 72.79 g/t Ga2O3 from surface and 30 metres at 94.63 g/t Ga2O3 also from surface, underscoring the deposit’s potential for near-surface extraction.

Gallium mineralisation occurs both within saprolite clays near surface and at depth within fresh rock, with mineralisation remaining open at depth. This vertical continuity suggests that deeper zones, yet to be assayed, could further enhance the resource potential. The positive correlation between gallium and TREO grades also points to the possibility of co-developing these critical minerals.

Strategic Importance Amid Rising Gallium Demand

Gallium is a critical metal used extensively in electronics and semiconductor industries, with supply currently dominated by China. Recent years have seen a material increase in gallium prices, driven by growing demand for advanced technologies. DY6 Metals’ discovery at Tundulu could position the company strategically within this supply-constrained market.

Preliminary metallurgical testwork on bulk samples from the project is underway, conducted by Auralia Metallurgy in Perth. These tests aim to determine the feasibility of producing separate rare earth and phosphate concentrates, with results expected in the coming weeks. Successful metallurgical outcomes will be crucial for advancing the project towards development.

Next Steps and Exploration Outlook

DY6 Metals holds the Tundulu Exploration Licence through its wholly owned subsidiary Green Exploration Limited, with no known impediments to operation. The company plans to continue exploration activities, including rock chip sampling, resampling of old trenches, and further drilling to validate and expand the gallium mineralisation. Integration and validation of historical data remain priorities to underpin future resource estimates.

While the historical data is considered reliable and of good quality, the company cautions that further ground testing and confirmation work are required. The absence of recent drilling since 2014 means that upcoming exploration programs will be critical to confirming the deposit’s scale and grade continuity.

Bottom Line?

As DY6 Metals advances metallurgical testing and exploration, the Tundulu Project could emerge as a vital new source of gallium amid tightening global supply.

Questions in the middle?

  • How will upcoming metallurgical test results impact the project’s development timeline?
  • What is the potential scale of gallium resources once deeper zones are assayed?
  • How might DY6 Metals position itself amid global gallium supply dominated by China?