Audalia Reports Maiden Ore Reserve and $141M to $227M NPVs at Medcalf

Medcalf Project’s Maiden Ore Reserve Marks a Milestone

Audalia Resources (ASX:ACP) has taken a significant step forward at its Medcalf Project, announcing a maiden Ore Reserve of 11.77 million tonnes grading 11.01% TiO2, 53.8% Fe2O3, and 0.61% V2O5. This reserve underpins a nine-year mine life with a rapid one-year payback, highlighting the project's potential to produce high-grade titanium and vanadium products aimed at refractory lining applications in blast furnaces.

The Ore Reserve is based on an updated Mineral Resource estimate completed in September 2025 by Cube Consulting, with metallurgical test work feeding into the final pit design and scheduling. Two development pathways have emerged from the Updated Prefeasibility Study (UPFS) released in January 2026, reflecting different capital and operating cost profiles.

Two Development Options Offer Distinct Economic Profiles

The UPFS outlines two options: a low capital expenditure (CAPEX) with higher operating expenditure (OPEX) route, and a high CAPEX but lower OPEX alternative. The low CAPEX/high OPEX scenario delivers a net present value (NPV) of $141 million and an internal rate of return (IRR) of 164%. Conversely, the high CAPEX/low OPEX option offers a superior NPV of $227 million but a more modest IRR of 64%.

This dual-path approach reflects flexibility in project execution, particularly concerning haul road construction and operational strategies. Audalia is continuing work to identify the optimal, low-risk development path. The project’s economics, especially the strong IRR in the low CAPEX scenario, suggest robust value creation potential despite the company’s relatively modest scale.

These findings build on previous milestones, including the January 2026 PFS update and maiden Ore Reserve announcement, which have been detailed in recent disclosures. The company is also advancing preparations for a Mine Development Closure Plan, a regulatory requirement for mining projects.

Cash Position Tight Amidst Exploration and Consultancy Costs

Financially, Audalia ended the March quarter with $203,000 in cash, down sharply from $623,000 at the end of December 2025. This decline follows $365,000 spent on exploration and evaluation activities and $46,000 in consultancy fees paid to a company associated with CEO Brent Butler. The company maintains loan facilities totaling A$6 million, with repayments due mid-2026.

The cash burn rate leaves Audalia with less than half a quarter of funding available based on current expenditure levels. The company is actively managing its cash flow and funding needs through budgeting and forecasting processes.

Capital Raise to Support Medcalf Development Progress

To address its tight liquidity, Audalia has secured firm commitments to raise $450,000 through a placement of 15 million shares at $0.03 each to a sophisticated investor. This capital injection aims to fund critical activities including mining design and regulatory approvals, which are essential steps toward project development.

This placement builds on a series of recent capital raises, demonstrating Audalia’s ability to attract funding despite the challenges faced by junior miners. The company continues to explore additional funding options to ensure it can advance the Medcalf Project beyond the exploration and evaluation phase.

Given the combination of a maiden Ore Reserve, dual development options with strong NPVs, and a pressing need for funding, Audalia’s next moves will be closely watched. The company’s ability to secure further capital and decide on the optimal project path will be pivotal in determining whether Medcalf can transition into production.

Meanwhile, the project’s location in the Lake Johnston greenstone belt near the Yilgarn Craton places it in a well-regarded mineral province, adding geological credibility to its resource base.

Audalia’s ongoing journey at Medcalf is emblematic of the tightrope walked by many juniors balancing promising project economics against funding realities. The coming quarters will reveal whether this balancing act can be sustained.

Investors might recall the recent firm commitments to raise $450,000 and the maiden Ore Reserve and extended mine life announcements as key milestones in this evolving story.