Risks and Rewards: Terrain’s Path to Sustainable Gallium Extraction in WA

• Metallurgical studies underway as part of WA government-funded MRIWA project
• Phase One JORC Exploration Target covers 5% of 27km² prospective geology
• Rights issue to raise approximately $1.8 million with strong board support
• Drilling ongoing at Smokebush Gold Project with promising high-grade results
• Focus on environmentally sustainable extraction of gallium and rare earth elements

Metallurgical Progress at Larin’s Lane

Terrain Minerals Limited (ASX: TMX) is advancing its 100% owned Larin’s Lane Gallium and Rare Earth Elements (REE) project in Western Australia, with metallurgical studies now underway. These studies are part of the Minerals Research Institute of Western Australia (MRIWA) funded research project M10528, conducted in collaboration with Curtin University and geological consultants RSC. The initiative aims to develop environmentally sustainable extraction techniques for gallium and REEs, critical components in modern electronics and green technologies.

Samples from Terrain’s drilling program have been received and are undergoing comprehensive testing to assess recovery rates of gallium, REEs, and other associated critical minerals. The metallurgical program is expected to conclude by the end of 2025, with interim results to be shared as they become available. This work is a pivotal step toward producing a concentrate suitable for customer trials and broader industry evaluation.

Exploration Target and Geological Context

Terrain has defined a Phase One JORC Exploration Target covering approximately 5% of the 27 square kilometre prospective sand and clay regolith zone at Larin’s Lane. This target area has demonstrated promising grades of total rare earth oxides (TREO) ranging from 760 to 1,050 parts per million and gallium grades consistently around 19 to 21 grams per tonne. Importantly, the mineralisation occurs near surface within an oxide horizon, which typically allows for more cost-effective extraction compared to traditional hard rock deposits.

SRK Consulting, which compiled the Exploration Target, notes that the undrilled areas between current drill clusters may hold similar or better mineralisation, underscoring significant upside potential. Terrain plans to undertake further drilling to expand the resource definition, aiming to delineate an Indicated Mineral Resource in line with JORC Code requirements before advancing to mining or feasibility studies.

Capital Raising and Strategic Development

To support ongoing exploration and development, Terrain has launched a pro-rata non-renounceable rights issue to raise up to approximately $1.8 million. Eligible shareholders can subscribe for one new share for every 3.7 shares held at an issue price of $0.003, with one free-attaching option exercisable at $0.005. The rights issue has garnered strong support from the board, with directors committing to take up their entitlements and underwriting a portion of any shortfall.

This capital injection is timely as Terrain advances metallurgical test work and prepares for further drilling phases. The company’s executive director, Justin Virgin, highlighted the strategic importance of gallium and REEs amid global supply chain concerns, particularly following export restrictions imposed by China. Terrain’s focus on sustainable extraction methods aligns with government priorities to secure critical mineral supplies domestically.

Broader Project Portfolio and Exploration Activity

Alongside Larin’s Lane, Terrain is actively progressing its Smokebush Gold Project, where drilling commenced in May 2025. Early results include high-grade gold and silver intersections, reinforcing the company’s diversified exploration strategy. Terrain also holds interests in other projects such as Biloela Copper & Gold and Lort River REE projects, with ongoing evaluations and selective metallurgical testing underway.

Terrain’s methodical approach to exploration and development, supported by government funding and academic partnerships, positions it well to unlock value in critical minerals essential for emerging technologies. The company remains open to commercial discussions regarding its assets, reflecting a flexible strategy to maximise shareholder returns.

Bottom Line?

As metallurgical results and further drilling unfold, Terrain Minerals is poised to deepen its foothold in the critical minerals sector, with market eyes on its next strategic moves.

Questions in the middle?

• How will interim metallurgical results influence the timeline for concentrate production?
• What are the prospects and timelines for expanding the Exploration Target beyond the initial 5% area?
• How might international partnerships shape the commercialisation of the Larin’s Lane gallium mineralisation?