Mons Block 3 Maiden Resource: 7.23Mt at 102g/t Gallium and 538ppm Rare Earth Oxides

A Breakthrough in Critical Minerals

Nimy Resources Limited (ASX – NIM) has announced a significant milestone with the declaration of a maiden JORC Inferred Mineral Resource at its Mons Block 3 project in Western Australia. The resource boasts an exceptionally high-grade gallium concentration of 102 grams per tonne (Ga2O3) across 7.23 million tonnes, alongside substantial rare earth oxides (TREO) averaging 538 parts per million. This positions Nimy as a potentially pivotal supplier of these critical minerals to western markets, especially given the tightening global supply landscape.

Resource Highlights and Exploration Potential

The resource estimate covers oxide and transition zones to a depth of approximately 100 meters, containing 740 tonnes of gallium trioxide and nearly 3,900 tonnes of TREO. Notably, mineralisation remains open both along strike and at depth, with exploration targets suggesting potential expansions up to 26 million tonnes at similar grades for gallium and 100 million tonnes for rare earth oxides. These targets, while conceptual, underscore the significant upside potential as further drilling and surveys progress.

Metallurgical Advances and Strategic Partnerships

Complementing the resource announcement, metallurgical testwork led by Curtin University has yielded promising results, demonstrating effective gallium extraction through mild acid leaching and innovative separation techniques. This progress enhances confidence in developing a cost-competitive processing flow sheet aimed at producing high-grade gallium and rare earth concentrates.

Strategically, Nimy has signed a non-binding memorandum of understanding with U.S.-based critical minerals group M2i Global, aligning with recent Australia-U.S. government agreements to secure critical mineral supply chains. This geopolitical backdrop, coupled with China’s 2023 gallium export ban, elevates the Mons Block 3 project’s importance in global supply security.

Geological and Technical Foundations

The Mons Block 3 deposit is hosted within an east-west trending shear zone in the Mid West region of Western Australia, characterized by mafic and ultramafic rock sequences. Extensive drilling, comprising 44 reverse circulation and one diamond hole totaling over 10,000 meters, along with soil sampling and geophysical surveys, have underpinned the resource model. The mineralisation is primarily associated with chlorite schists and clay minerals, with rare earth elements distributed in overlapping but distinct domains from gallium.

While the resource classification remains Inferred due to drill spacing and data limitations, the geological interpretation and data quality are robust for this stage. Further drilling and metallurgical studies are planned to refine resource confidence and processing pathways.

Market Context and Outlook

Gallium’s critical role in semiconductors, defence, AI, 5G, and renewable energy technologies, combined with its supply risk, highlighted by a 100% probability of disruption to the U.S. economy, makes Nimy’s discovery timely. The company’s proximity to rail and port infrastructure in Western Australia further supports potential development logistics.

As Nimy advances its exploration and processing programs, the Mons Block 3 project could emerge as a cornerstone in diversifying global gallium and rare earth supplies, reducing reliance on dominant suppliers and aligning with strategic mineral security initiatives.