Blaze Minerals has confirmed a new critical mineral discovery of gallium and rubidium at its Ntungamo Project in Uganda, while withdrawing from its Congo base metals venture due to security concerns.
- New critical mineral discovery of gallium and rubidium at Ntungamo
- Strategic review underway for Ntungamo Project’s future development
- Withdrawal from Loulombo Base Metals Project in Republic of the Congo
- No significant assay results from Mityana lithium project drilling
- Quarterly exploration expenditure of $263,000 with cash reserves at $786,000
Strategic Shift Following Critical Mineral Discovery
Blaze Minerals Limited (ASX, BLZ) has announced a pivotal development in its exploration portfolio with the confirmation of a new critical mineral discovery at its Ntungamo Project in western Uganda. The discovery centres on gallium and rubidium, two metals increasingly vital to high-tech and clean energy applications. This breakthrough has prompted the company to initiate a strategic review of the project, potentially involving further exploration or seeking a joint venture partner to advance field activities.
The Ntungamo Project’s geology is characterised by metasediments intruded by late-stage pegmatites enriched in these critical metals. Five diamond drill holes totaling 1,548 metres were completed, targeting two pegmatite bodies that had not previously outcropped on the surface. Assay results confirmed the presence of gallium across all rock types and rubidium concentrations peaking in coarse pegmatite samples, underscoring the project's promising potential.
Exiting the Loulombo Project Amid Security Concerns
In a notable portfolio adjustment, Blaze Minerals has issued a withdrawal notice for its 80% interest in the Loulombo Base Metals Project in the Republic of the Congo. The decision follows concerns raised by the local partner regarding the security of personnel and equipment on site. Consequently, Blaze will relinquish its equity stake and all associated rights and obligations. This move reflects a cautious approach to geopolitical risks, prioritising the safety of operations and assets.
Mityana Project Shows Limited Progress
Meanwhile, the Mityana Project in central Uganda, which surrounds a historic tantalite mine, saw limited exploration activity during the quarter. A drilling program completed in late 2024 aimed to assess lithium-bearing pegmatites, but multi-element assays returned no significant results. This outcome tempers expectations for near-term development at Mityana, though the company continues to monitor opportunities across its portfolio.
Financial Position and Corporate Developments
Blaze Minerals reported exploration expenditure of $263,000 for the quarter, with no substantive mining production activities undertaken. The company’s cash reserves decreased to $786,000 by quarter-end, reflecting ongoing investment in exploration and corporate costs. Notably, the company has no immediate plans for capital raising but remains vigilant on its cash position, prepared to act when appropriate. Corporate governance remained stable, with all resolutions passed at the recent Annual General Meeting and certain unquoted options expiring unexercised.
Looking ahead, Blaze is actively reviewing new project opportunities to complement its existing assets, signaling a proactive stance in expanding its critical minerals footprint. The strategic review of Ntungamo and the exit from Loulombo mark a clear recalibration of focus towards safer, higher-potential ventures.
Bottom Line?
Blaze Minerals’ confirmation of critical minerals at Ntungamo sets the stage for a strategic pivot, while its Congo exit underscores a cautious risk posture.
Questions in the middle?
- What are the next steps and timeline for the Ntungamo Project’s strategic review?
- How will the withdrawal from the Loulombo Project impact Blaze’s overall asset valuation?
- What new project opportunities is Blaze considering to diversify its portfolio?