Greenwing Faces Regulatory and Funding Challenges Amid Lithium Resource Growth

San Jorge Lithium Project: A Growing Lithium Asset in Argentina

Greenwing Resources Ltd (ASX:GW1) has delivered a significant update on its San Jorge Lithium Project in Argentina, reinforcing its position in the lithium triangle with a maiden Mineral Resource Estimate (MRE) of 1.07 million tonnes of Lithium Carbonate Equivalent (LCE). This resource comprises 0.67 Mt of Indicated and 0.4 Mt of Inferred resources at an initial lithium grade of 195 mg/L. The project covers a substantial tenement package of 38,600 hectares, including the San Francisco Salar, where the lithium brine extends well beyond the visible salar boundaries.

During the quarter, Greenwing completed Magnetotelluric (MT) and Transient Electromagnetic (TEM) geophysical surveys that confirmed the lithium-bearing brine extends at least 4 km west and 5 km north of the salar, remaining open at depths beyond 400 meters. These findings suggest a material expansion potential for both tonnage and grade, positioning San Jorge as a compelling lithium asset amid growing global demand.

Complementing the resource growth, Greenwing has advanced processing test work with leading Direct Lithium Extraction (DLE) technology providers IBC Advanced Technologies and Xtralit, confirming the brine’s amenability to efficient lithium recovery methods. This technical progress supports the company’s strategy to develop a scalable and cost-effective lithium operation.

Madagascar Portfolio: Navigating Regulatory Changes and Unlocking Value

Greenwing’s Madagascar assets remain a key part of its critical minerals portfolio, encompassing the Graphmada Graphite Mining Complex, the Andapa Graphite Project, and the Millie’s Reward Hard Rock Lithium Project. The Graphmada complex, with a robust Mineral Resource of 61.9 Mt at 4.5% fixed carbon, is currently on care and maintenance but retains strategic value given global supply chain shifts and export restrictions from China.

The company is actively engaging with Madagascar’s evolving mining legislation to update agreements and secure tenure, particularly for the Millie’s Reward lithium project. Recent auger drilling at Andapa confirmed continuous shallow graphite mineralisation over significant strike lengths, setting the stage for more extensive drilling programs.

Que River Project: Updated Resource and Exploration Upside in Tasmania

In Tasmania, Greenwing released an updated Mineral Resource Estimate for its Que River polymetallic project, which hosts zinc, lead, copper, gold, and silver mineralisation. The project benefits from proximity to operating mines and infrastructure, including the Hellyer Mine and Rosebery processing facilities. The updated resource highlights open pit and underground potential, with several high-grade zones identified for further evaluation.

Greenwing is reviewing extensive historical data and drilling results to identify extensions and new lenses of mineralisation, aiming to optimise the project’s development potential amid rising metal prices and improved processing technologies.

Corporate and Financial Developments

To support its growth initiatives, Greenwing completed an equity raising to secure up to $3.5 million, comprising placements to professional investors and a share purchase plan for existing shareholders. The company also appointed Chris Godfrey as Chief Operating Officer, bringing extensive operational experience across mining sectors in Australia.

Financially, Greenwing reported net cash outflows of $98,000 in exploration and evaluation activities during the quarter, with a cash balance of $126,000 and access to a $1 million unsecured loan facility. Excluding funds dedicated to the San Jorge project, the company estimates approximately 2.7 quarters of funding available for other operations, bolstered by an $8 million at-the-market facility.

Strategic Partnerships and Outlook

Greenwing continues to engage with strategic partners, notably NIO Inc, which holds a call option to acquire 20-40% of Andes Litio SA, the entity controlling San Jorge. Discussions on the option terms remain ongoing, with the company committed to updating the market on any developments. The amended payment schedule for the San Jorge option agreement extends the next instalment to November 2025, providing financial flexibility.

Overall, Greenwing’s diversified portfolio across lithium and graphite, combined with advancing resource definitions and processing technologies, positions it well to capitalize on the accelerating demand for critical minerals essential to the global energy transition.