Salazar Project’s 263Mt Gallium Resource Highlights Critical Minerals Potential

A Major Gallium Discovery in WA

West Cobar Metals Limited (ASX, WC1) has revealed an initial inferred Mineral Resource Estimate (MRE) of 263 million tonnes grading 26 parts per million (ppm) gallium at its Salazar Critical Minerals Project in Western Australia. This resource, hosted within the saprolitic clays of the Newmont and O’Connor deposits, represents a significant addition to the company’s portfolio of critical minerals including rare earth elements (REEs), scandium, titanium dioxide, and alumina.

The gallium mineralisation lies within a rare earth element envelope of at least 300 ppm total rare earth oxides (TREO), suggesting a reasonable prospect for economic extraction as a by-product of REE and scandium processing. This strategic positioning is particularly timely given gallium’s growing importance in semiconductor manufacturing, defence technologies, and internet infrastructure.

Metallurgical Potential and Resource Upside

Metallurgical test work conducted by Nagrom and other laboratories indicates that gallium can potentially be recovered alongside rare earths and scandium through hydrometallurgical processes. While these results are promising, further test work is underway to confirm recoverability and processing performance, which will be critical to defining the project’s economic viability.

Importantly, the resource estimate excludes gallium mineralisation in unweathered bedrock, focusing instead on saprolitic clays where mineral breakdown enhances leachability and extraction potential. This approach aligns with the project’s envisaged open-pit mining method, which assumes free-digging saprolite without the need for explosives.

Exploration drilling has also highlighted significant potential to expand gallium resources, particularly at the Newmont and O’Connor deposits, as well as at nearby Glenmorangie and Talisker prospects. Reconnaissance reverse circulation drilling has returned encouraging gallium intersections, including up to 108 ppm Ga2O3 near surface at Glenmorangie, underscoring the upside for resource growth.

Strategic Importance Amid Global Supply Constraints

Gallium’s critical role in advanced technologies, especially semiconductors and computer chips, has been underscored by recent export restrictions imposed by China, the world’s dominant supplier. This has heightened concerns over supply security in Western markets, prompting governments including Australia to prioritise gallium within their Critical Minerals Strategic Reserves.

West Cobar’s Managing Director, Matt Szwedzicki, emphasised the significance of the discovery, “Gallium is a high-value critical mineral with a current oxide price around US$284 per kilogram. Its inclusion as a by-product alongside rare earths and scandium at Salazar has the potential to materially enhance the project’s economics.”

The Salazar project, located approximately 120 kilometres northeast of Esperance, is now one of Australia’s most advanced clay-hosted critical minerals projects, with published JORC resources for antimony, gallium, and rare earths, all strategic commodities for the Australian government.

Looking Ahead

West Cobar plans to continue metallurgical test work and expand drilling programs to better define and potentially increase the gallium resource. The company is also advancing studies to integrate gallium recovery into a multi-product processing flowsheet alongside REEs, scandium, titanium dioxide, and alumina.

As global demand for critical minerals intensifies, West Cobar’s Salazar project stands out as a strategically important asset with the potential to contribute to supply diversification and security for gallium and other critical elements.