Neometals Sets Ambitious Potash and Lithium Target at Utah Brine Project

Large-Scale Lithium-Potash Potential Defined

Neometals Ltd (ASX:NMT) has laid down a substantial Exploration Target for potash and lithium mineralisation at its Utah Brine Project, located within the Paradox Basin in south-east Utah. The target, reported in accordance with the JORC Code (2012), estimates between approximately 94 and 325 million tonnes of muriate of potash (MOP) and 1.9 to 6.5 million tonnes of lithium carbonate equivalent (LCE), reflecting a sizeable resource base for a project still in early exploration stages.

The Utah Brine Project covers more than 80,000 acres in the Lisbon Valley area, with Neometals holding a 51% interest through Utah Brine Corporation (UBC). The project benefits from exclusive access to a portfolio of mineral claims, prospecting permit applications, and potash lease nominations, alongside established wells and infrastructure originally drilled for hydrocarbons.

Data-Driven but Conceptual Exploration Target

The Exploration Target is derived from a volumetric approach utilising historical oil and gas well data, brine chemistry from wireline bailer sampling by Mandrake Resources Limited, and petrophysical analysis of reservoir formations. Key geologic units include the Pennsylvanian Paradox Formation clastic zones, the Mississippian Leadville Limestone, and the Devonian McCracken sandstone.

Effective porosity values range widely across these formations, from as low as 3.5% in the McCracken to up to 16.2% in the Paradox Lower clastic zone. Potash concentrations in brines vary significantly, with values between 13,481 mg/L and 25,037 mg/L potassium used for the Paradox zones, while lithium concentrations average between 83 and 147 mg/L in the clastic zones. However, the data is acknowledged as conceptual, with potential contamination and wellbore mixing affecting brine sample representativity.

Neometals emphasises the need for further validation through re-entry or drilling of wells, improved brine sampling techniques such as swabbing, and comprehensive hydrogeological testing. These steps are critical to support future Mineral Resource estimation and to better understand reservoir properties.

Upcoming Work Program Targets Resource Conversion

To move beyond the Exploration Target, Neometals plans a series of technical programs from Q2 2026 through H1 2027. These include brine sampling from existing wells under licence agreements with American Helium Inc. and Ascent Resources plc, metallurgical testwork focusing on Direct Lithium Extraction (DLE) technologies, and integration of geological, geophysical, and geochemical data into a 3D geological and hydrogeological model.

The DLE testing, scheduled for the second half of 2026, aims to verify lithium and potash recovery pathways from the brines. This initiative aligns with Neometals’ broader strategy to leverage its lithium and battery materials expertise into Tier-1 jurisdictions, complementing its recent capital raising efforts to accelerate lithium exploration alongside gold projects in Western Australia, as seen in their capital raise announcement.

Tenure and Regulatory Considerations Remain

While UBC holds a substantial tenure position, including unpatented placer claims and potash lease nominations, not all applications have been granted, and the project area overlaps with third-party mineral interests. Lithium and potassium rights are governed by different regulatory regimes, potentially complicating future development through pooling or joint arrangements.

No significant impediments to obtaining a licence to operate have been identified beyond customary regulatory approvals and land access requirements. However, tenure uncertainties and third-party rights inject an element of risk into project timelines and the ability to secure full mineral rights.

Strategic Expansion into US Critical Minerals

Neometals’ Managing Director Christopher Reed highlighted the Utah Brine Project as a strategically attractive and low-cost entry point for lithium-potash brine development in the US, a Tier-1 jurisdiction. The project’s potential scale and quality, combined with existing infrastructure, position Neometals to contribute to critical minerals supply chains that are increasingly important for battery and clean energy technologies.

Despite the promising Exploration Target, the company cautions that the dataset is conceptual and based on third-party historical data, with no independent validation yet. The upcoming technical programs will be pivotal in confirming the project’s resource potential and economic viability.