Morella Confirms Large Pegmatite System at Mt Edon with Broad Intercepts

Mt Edon Drilling Highlights Scale and Continuity

Morella Corporation (ASX:1MC) has taken a significant step toward defining a resource at its Mt Edon Rubidium-Lithium Project in Western Australia, completing 20 reverse circulation holes totaling 1,863 metres during the March 2026 quarter. The drilling confirmed a large-scale pegmatite system with multiple broad intercepts exceeding 30 metres, including standout zones of 84m, 69m, and 53m thickness. Notably, drill hole MER046 terminated in pegmatite, indicating the system remains open at depth and along strike.

The average pegmatite thickness across the Southern Sophie Prospect sits consistently around 40-45 metres, supporting the potential for a meaningful tonnage within a laterally extensive mineralised corridor. Geological logging identified two principal pegmatite bodies separated by zones of reduced mineralisation, which together form part of a broader corridor of subparallel pegmatite domains. These findings build on previous drilling that first revealed significant rubidium enrichment at Mt Edon. However, assay results from the recent program are still pending, leaving the economic significance of the lithium and rubidium grades to be confirmed.

These developments follow Morella’s prior identification of high-grade rubidium mineralisation at Mt Edon, where historical rock chip sampling returned up to 2.84% Rb2O and over half of samples exceeded 0.1% Rb2O. The company has collected 241 rock chip samples since 2016, with 121 surpassing the 0.1% Rb2O benchmark, reinforcing the project's potential as a significant rubidium source. This expanded footprint of mineralisation was highlighted in a recent review that reinterpreted historic data alongside new drilling success, underscoring the project's promise within the critical minerals sector. This progress aligns with Morella’s strategic focus on advancing Mt Edon toward resource definition, as detailed in their earlier broad pegmatite intercepts announcement.

Advancement Across Western Australian Projects

Beyond Mt Edon, Morella progressed exploration at its Mallina Lithium Project and Dixon Well titanium-vanadium project during the quarter. At Mallina, the company completed a ground gravity survey co-funded by government programs, generating gravity low targets for follow-up drilling and integrating geological and geochemical data to refine exploration focus.

Meanwhile, the Dixon Well Project saw reconnaissance sampling return high-grade titanium oxide values up to 17.0% TiO2, prompting planning for staged follow-up work including mapping and additional sampling. These efforts reflect Morella’s commitment to advancing critical minerals projects aligned with energy transition technologies.

Balance Sheet Bolstered by A$2.1 Million Placement

Financially, Morella strengthened its position through a well-supported A$2.1 million placement priced at A$0.04 per share, representing an 11.4% discount to the 15-day volume weighted average price prior to announcement. The raise attracted participation from major shareholders including Interra Resources Limited and company directors, with free-attaching options exercisable at A$0.06 included to sweeten the offer. The placement proceeds provide Morella with flexibility to accelerate drilling and exploration across its Australian and US critical minerals portfolio. This capital raise builds on the company’s earlier A$2.1M capital raise and supports ongoing project advancement.

Legal Action Targets 2020 Asset Sale Proceeds

In a move reflecting governance vigilance, Morella initiated Federal Court proceedings against former receivers relating to the 2020 receivership of Altura Mining Limited, the company’s predecessor. The legal action seeks recovery of asset sale proceeds that Morella contends were improperly withheld, aiming to restore value to shareholders. The Board has stated that the proceedings are appropriately funded and are not expected to materially impact ongoing operations or exploration programs. This litigation underscores Morella’s focus on protecting shareholder interests and aligns with its prior legal proceedings initiation disclosure.

US Lithium Portfolio Rationalisation Continues

On the other side of the globe, Morella’s Nevada lithium assets saw no physical exploration during the quarter, with efforts concentrated on administrative restructuring, claim renewals, and reduction of non-core ground. These measures aim to lower holding costs while preserving exposure to structurally favourable lithium basins for future market cycles.

Morella’s Managing Director James Brown highlighted the March quarter as a pivotal period, noting the drilling success at Mt Edon and the methodical advancement of other projects. With assay results pending and follow-up drilling planned, the company remains focused on converting technical validation into resource definition and development readiness.