Morella Confirms 0.59% Rb2O and 0.63% Li2O in Mt Edon Drilling

Strategic Approvals and Research Drive Mt Edon Progress

Morella Corporation Limited (ASX – 1MC) has reported meaningful progress in the June 2025 quarter, particularly at its Mt Edon Project in Western Australia. The company secured critical heritage clearances and Program of Work approvals, clearing the path for future drilling campaigns. This regulatory milestone is pivotal, given the project's promising pegmatite-hosted rubidium and lithium mineralisation, which was confirmed in a 2024 drilling program that intercepted pegmatites in 15 of 17 holes with assays up to 0.59% Rb2O and 0.63% Li2O.

Rather than immediately advancing drilling, Morella is prioritising a research collaboration with Edith Cowan University (ECU) focused on rubidium extraction and purification techniques. This partnership aims to optimise downstream processing pathways, potentially enhancing recovery rates and cost efficiencies. The emphasis on processing studies before further drilling reflects a strategic approach to resource development, ensuring that future exploration is aligned with metallurgical realities.

Government Support and Exploration at Mallina and West Wodgina

Beyond Mt Edon, Morella secured government co-funding for a ground gravity geophysics survey at its Mallina Project, also in Western Australia. This survey, scheduled for the September quarter, targets concealed pegmatite units that could host significant lithium mineralisation. Historical drilling at Mallina has already identified lithium-bearing pegmatites with intercepts such as 20m at 1.12% Li2O, underscoring the project's potential.

Meanwhile, exploration at the West Wodgina Project continues with planned site visits to refine geological models and prepare for potential drilling. These projects are part of Morella's joint venture with Sayona Mining Limited, which holds a 49% interest, highlighting collaborative efforts to unlock critical mineral resources in Tier 1 jurisdictions.

Corporate Moves Preserve Capital for Exploration

On the corporate front, Morella ratified share issues from a December 2024 placement at an Extraordinary General Meeting in May 2025. Notably, directors opted to receive shares in lieu of cash fees, a move designed to conserve cash for in-ground exploration activities. This decision aligns with the company's broader strategy to maintain financial flexibility while advancing its critical minerals portfolio.

Financially, Morella reported a net cash decrease from operating activities but maintained cash reserves of AUD 804,000 at quarter-end. The company also has an unsecured loan facility maturing in 2027, providing additional financial support as it progresses its projects.

Outlook – Balancing Research, Exploration, and Diversification

Morella’s immediate focus remains on completing the ECU extraction study at Mt Edon, which will inform a cost-effective and strategically aligned drilling program. The company is also advancing diversification efforts into other base and specialty metals, aiming to build a resilient commodity base amid evolving market demands.

With promising assay results, government backing, and a clear development roadmap, Morella is positioning itself as a notable player in the critical minerals sector, particularly in rubidium and lithium, metals increasingly vital for advanced technologies and green energy transitions.