Metals Australia Adds 4,995m Graphitic Carbon, Eyes Infrastructure Grants
Metals Australia reports a 595% surge in graphitic carbon intervals at its Lac Carheil project, advances critical infrastructure funding applications, and initiates copper-gold drilling at Warrego East.
- 595% increase in mineralised graphitic carbon intervals at Lac Carheil
- Continuous 2.3km graphite strike length confirmed, resource update imminent
- Funding applications submitted for power and transport infrastructure in Canada
- Promising metallurgical results from Manindi Vanadium-Titanium-Magnetite discovery
- Drilling underway at Warrego East targeting five copper-gold and bismuth prospects
Exceptional Drilling Success at Lac Carheil
Metals Australia Limited (ASX – MLS) has delivered a standout quarterly report for Q4 2025, highlighted by exceptional drilling results at its flagship Lac Carheil Graphite Project in Quebec, Canada. The company completed 9,538 metres of diamond drilling, which has added nearly 5,000 metres of new graphitic carbon intervals to its database, a staggering 595% increase over previous data. This drilling has confirmed a continuous graphite strike length of 2.3 kilometres on just one of ten mapped trends, with the mineralisation remaining open along strike.
This substantial expansion in mineralised zones sets the stage for an updated Mineral Resource Estimate (MRE), expected to be released within the current calendar quarter. The new data not only enhances the scale of the project but also identifies a new high-grade zone at the southeast end of the existing resource, underscoring the project's growing potential.
Strategic Infrastructure Funding Initiatives
If successful, these grants would cover up to 50% of the costs for these infrastructure components, significantly de-risking the project and accelerating its path to production. While funding outcomes remain uncertain, this proactive approach aligns with Canadian government priorities to bolster critical mineral supply chains.
Advances in Pre-Development and Downstream Processing
On the technical front, Metals Australia has made solid progress with its prefeasibility study (PFS) for the flake graphite concentrate plant, led by Lycopodium Minerals Canada. The process design criteria and equipment lists have been finalized and are undergoing final reviews. Post-quarter, DRA Americas Inc. was appointed to advance mine planning and infrastructure design, marking a key milestone in project development.
Complementing this, Anzaplan is advancing metallurgical test work and a location study for a Battery Anode Material refinery, aimed at adding downstream value by upgrading flake graphite to battery-grade material. This integrated approach positions Metals Australia to capture more value across the battery supply chain.
Promising Metallurgical Results from Manindi Discovery
In Western Australia, the Manindi Vanadium-Titanium-Magnetite project delivered encouraging metallurgical test results. Two commercially attractive products were produced – a high-grade iron-vanadium concentrate (66% Fe, 1.19% V2O5) and a titanium oxide-iron product (43.8% TiO2, 32% Fe), with a combined recovery exceeding 65% of the sample mass. These products have attracted potential customer interest, and further optimisation work is underway to enhance the titanium grade.
Exploration planning for additional drilling at Manindi is well advanced, with new magnetic targets identified near the discovery zone, suggesting potential for further resource growth.
Warrego East Drilling Commences Amid High Expectations
Metals Australia has also initiated drilling at its Warrego East copper-gold project in the Northern Territory, targeting five geophysical anomalies prospective for copper, gold, and bismuth. These targets lie in geological settings analogous to nearby high-grade deposits such as the Warrego Mine and White Devil Mine, which historically produced significant copper and gold volumes.
Despite some initial delays due to rig mobilisation and mechanical issues, the 3,000-metre drilling program is underway and expected to continue into August. The program includes near real-time geochemical analysis to adapt drilling depths dynamically, enhancing the chances of intersecting mineralisation.
Financial Position and Market Context
Metals Australia closed the quarter with $8.49 million in cash, down from $11.77 million in the previous quarter, reflecting $3.32 million spent on exploration and development activities. The company anticipates significant cash rebates from Canadian mineral exploration tax credits and indirect tax recoveries, which will partially offset expenditures.
The company’s progress comes amid supportive policy environments in Canada and the USA, including government incentives for critical minerals development and recent US tariffs on Chinese graphite imports. These geopolitical shifts enhance the strategic value of domestic graphite projects like Lac Carheil, potentially accelerating demand and pricing for locally sourced battery materials.
Bottom Line?
With resource growth, infrastructure funding bids, and drilling momentum, Metals Australia is poised for a pivotal phase, investors will watch closely for the upcoming resource update and Warrego East results.
Questions in the middle?
- Will Metals Australia secure funding from Natural Resources Canada’s infrastructure programs?
- How will the updated Mineral Resource Estimate at Lac Carheil impact project valuation and timelines?
- What initial results will emerge from the Warrego East drilling program, and could they trigger further exploration?
