Chilwa Minerals Expands Resource by 85% and Advances Rare Earths in Malawi

• Mineral Resource Estimate increased 85% to 110Mt grading 4.03% Total Heavy Mineral
• 71% of resources upgraded to Indicated category, supporting mine feasibility
• High-grade sonic drilling results at Mposa and Mpyupyu Dune deposits
• Discovery of carbonatite swarm with significant rare earth element mineralisation
• Mining Development Agreement process underway with Malawi government

Resource Upgrade Signals Growing Potential

Chilwa Minerals Limited (ASX, CHW) has delivered a substantial upgrade to its Mineral Resource Estimate (MRE) for its Chilwa Critical Minerals Project in Malawi, reporting an 85% increase to 110 million tonnes of ore grading 4.03% Total Heavy Mineral (THM). Notably, 71% of this resource is now classified in the higher confidence Indicated category, a critical milestone that supports advancing mine feasibility studies.

This upgrade reflects the integration of new sonic drilling data with historic aircore results across multiple deposits including Mposa, Mpyupyu Dune, Mpyupyu Flat, Bimbi, and Hallala. The improved geological modelling, aided by better preserved lithological contacts from sonic drilling, has enhanced resource confidence and will underpin upcoming economic studies.

Strong Drill Results Highlight High-Grade Zones

During the quarter, Chilwa reported impressive high-grade intersections from sonic drilling at key deposits. At Mposa, intervals such as 6.6 meters at 12.1% THM and 6 meters at 15.2% THM were recorded, with portions exceeding 30% THM. Similarly, Mpyupyu Dune delivered intervals up to 3.25 meters at 21.46% THM, including sections surpassing 30% THM. These results reinforce the project's potential to yield economically viable heavy mineral concentrates.

Rare Earth Element Exploration Advances

Beyond heavy minerals, Chilwa has confirmed a significant carbonatite swarm within its project area, hosting rare earth element (REE) mineralisation. Ground truthing of geophysical anomalies has identified zones enriched in niobium and both light and heavy REEs, with ionic soil sampling revealing anomalies up to 500 times background levels. The company plans diamond drilling at the Mposa East REE target in the September quarter, aiming to delineate these critical minerals further.

Progress on Mining Development Agreement and Scoping Study

Chilwa has commenced the Mining Development Agreement (MDA) process with the Malawi government, a key step to establish the legal and fiscal framework for project development. The MDA is expected to provide stability and clarity for both parties, facilitating investment and operational planning. Concurrently, Chilwa has engaged TZ Minerals International to lead a scoping study focused on the central zone deposits, targeting the production of a heavy mineral concentrate and investigating infrastructure options such as a separation plant at the Liwonde Dry Port.

Financial Position and Outlook

As of 30 June 2025, Chilwa held AUD 713,000 in cash with no debt. The company is actively conducting an equity capital raising to secure funding beyond the next two quarters, ensuring continued exploration and development activities. Engagements with international investors and government bodies, including meetings in New York and Washington, D.C., underscore growing interest in Chilwa’s critical minerals portfolio.

Bottom Line?

With its resource base substantially expanded and rare earth exploration gaining momentum, Chilwa Minerals is poised for pivotal development phases, pending successful capital raising and further drilling results.

Questions in the middle?

• How will the upcoming diamond drilling results at Mposa East impact the rare earth element resource potential?
• What are the expected timelines and terms for finalising the Mining Development Agreement with the Malawi government?
• How will Chilwa’s planned scoping study influence project economics and infrastructure decisions?