Australasian Metals Limited has reported promising exploration results at its May Queen gold and bauxite projects, alongside strategic reviews of lithium assets and a solid cash position heading into 2026.
- Encouraging gold assay results and geophysical survey at May Queen Gold Project
- High-grade bauxite mineralisation and elevated gallium levels at May Queen South
- Desktop targeting identifies drill prospects at Mt Clermont and Capella
- No field activity at lithium projects; ongoing collaboration and research involvement
- Strong cash balance of $2.68 million with $80,000 exploration spend in the quarter
Exploration Momentum at May Queen
Australasian Metals Limited (ASX, A8G) has delivered a solid December quarter update, highlighting progress across its portfolio of mineral exploration projects. The May Queen Gold Project in Queensland remains a focal point, with the company reporting encouraging gold assay results from previous drilling campaigns. Notably, assays include intercepts such as 6 metres at 1.99 grams per tonne gold and a standout 1 metre at 9.39 grams per tonne, reinforcing the prospectivity of the site.
Complementing these results, a comprehensive induced polarization (IP) geophysical survey completed in May 2025 revealed a significant chargeability anomaly extending 400 to 500 metres, suggesting a substantial mineralised system. Consulting geophysicists have recommended follow-up drilling to test these targets, with planning and access negotiations underway.
Bauxite and Gallium Potential Enhances Resource Value
At the May Queen South Bauxite Project, the company has identified high-grade bauxite mineralisation averaging 42% alumina over a 16 square kilometre area. This bauxite deposit is strategically located near rail infrastructure, facilitating potential transport to export ports. Importantly, re-assaying of samples for gallium content has revealed elevated grades averaging 67.59 grams per tonne, with peaks up to 145.5 grams per tonne. Given gallium's rising market value, these findings could materially enhance the economic prospects of the deposit.
While no fieldwork was conducted this quarter at May Queen South, ongoing metallurgical test work aims to refine recovery methods for titanium, aluminium, and iron, which could further unlock value.
Strategic Targeting at Mt Clermont and Capella
Australasian Metals has also advanced desktop studies at its Mt Clermont and Capella projects in Central Queensland. Historical drilling and geological data suggest potential for high-grade polymetallic epithermal systems, particularly at the Ayres Rock Prospect within Capella. The recent data review has pinpointed promising drill targets associated with structurally controlled quartz vein breccias, known for hosting fine-grained gold mineralisation. These insights set the stage for future drilling campaigns to test these high-grade shoots.
Lithium Projects and Research Collaborations
The company’s lithium assets, including the Mt Peake and Barrow Creek projects in the Northern Territory, saw no field activity during the quarter. However, Australasian Metals engaged in technical discussions with joint venture partners and participated in a research program with the University of Western Australia’s Centre for Exploration Targeting. This collaboration is expected to yield valuable scientific insights into the lithium and critical minerals potential of the region, potentially informing future exploration strategies.
Financial Position and Outlook
Financially, Australasian Metals maintains a robust position with approximately $2.68 million in cash and no debt as of 31 December 2025. Exploration expenditure for the quarter was modest at $80,000, reflecting a disciplined approach to capital allocation. Director and consulting fees amounted to $90,000, consistent with prior periods. The Board continues to evaluate new opportunities focused on gold, copper, lithium, and manganese to enhance shareholder value.
With promising exploration results, strategic project reviews, and a healthy balance sheet, Australasian Metals is well-positioned to advance its portfolio in 2026. The market will be watching closely for upcoming drill results and potential new project acquisitions that could further shape the company’s growth trajectory.
Bottom Line?
Australasian Metals’ blend of promising exploration data and financial strength sets the stage for a pivotal year ahead.
Questions in the middle?
- When will Australasian Metals commence drilling to test the new geophysical targets at May Queen?
- How might the elevated gallium grades impact the valuation and development plans for the May Queen South Bauxite Project?
- What are the prospects and timelines for advancing lithium exploration at Mt Peake and Barrow Creek?