Charger Metals Expands Lithium Resource Amid Surging Market Prices

Significant Lithium Resource Growth at Lake Johnston

Charger Metals (ASX:CHR) is poised to revise its maiden Medcalf lithium resource following a series of drill results that confirm spodumene mineralisation extending down dip to 700 metres and along strike. The current inferred resource stands at 8.2 million tonnes at 1.0% lithium oxide (Li2O), but recent drilling has revealed wider and continuous spodumene pegmatites beyond the original boundaries. Mineralisation thicknesses of 20 to 30 metres have been recorded, and new spodumene lodes have been identified in the hanging wall, indicating the resource could grow substantially. These findings come after a concentrated drilling program of 44 holes, with assays pending for a full resource update expected in the June quarter. This momentum follows the company's earlier success in confirming high-grade lithium intersections at Medcalf West, a conceptual exploration target of 3 to 5 million tonnes at 1.0 to 1.4% Li2O that remains to be fully defined through further drilling and evaluation. Charger’s strategy to expand Medcalf’s resource base is a critical step towards development, especially with mining lease applications lodged and processing studies underway. The Medcalf project is one of the few undeveloped spodumene deposits in Western Australia without offtake commitments, giving Charger flexibility in negotiating future sales and partnerships. This progress builds on the company’s recent drilling success at Medcalf where the extension of spodumene mineralisation was first reported.

Gold Discovery Adds Value to Lake Johnston Portfolio

While lithium remains the focus, Charger has also uncovered significant gold potential at its Lake Johnston project, highlighted by the Xmas Gold Discovery. Drilling at this prospect has intercepted 3 metres grading 18.0 grams per tonne gold and 9.15 grams per tonne silver, confirming a high-grade target that is open along strike and at depth. Follow-up diamond and RC drilling has been completed with assays awaited, and extensive soil sampling is underway to delineate the gold system further. This discovery adds a valuable dimension to the Lake Johnston asset, located within the prolific Yilgarn Gold and Lithium Province, which hosts some of Australia’s largest gold and lithium deposits. The proximity to existing spodumene plants and port infrastructure enhances the project’s development potential. Charger’s recent high-grade gold assays at Xmas underpin the growing attractiveness of this multi-commodity project.

Bynoe Lithium Project Positioned for Exploration Upside

In the Northern Territory, Charger’s 100% owned Bynoe Lithium Project sits strategically along strike from Core Lithium’s Finniss project, a significant spodumene operation with established infrastructure near Darwin. The project covers approximately 63 square kilometres of spodumene-enriched pegmatite corridors, with over 20 identified prospects yet to be drill-tested. Initial drilling has intersected spodumene-bearing pegmatites up to 24 metres wide, confirming the presence of lithium mineralisation. The Bynoe project benefits from its location in a Tier 1 jurisdiction and proximity to a large beneficiation plant, positioning it well for rapid exploration advancement. Charger’s systematic approach to testing priority lithium targets reflects its ambition to unlock the project’s scale potential. The company’s drilling results at Bynoe highlight spodumene mineralisation extending to vertical depths of 215 metres with encouraging lithium grades.

Commodity Market Tailwinds Support Development Prospects

The timing of Charger’s exploration success coincides with a robust rebound in lithium and gold markets. Spodumene concentrate prices have surged over 160% in the past year to around US$2,730 per tonne, while lithium carbonate prices have climbed to US$27,417 per tonne, reflecting growing demand from electric vehicle sales and energy storage systems. Industry forecasts, including from Albemarle, anticipate lithium demand growth of 15% to 40% year-on-year in 2026, driven by regulatory support in China, the EU, and emerging markets. Supply disruptions in key producing regions such as China, Zimbabwe, and South America add to market tightness, underscoring the strategic value of spodumene projects in stable jurisdictions like Western Australia and the Northern Territory. Charger is well positioned to capitalise on these dynamics given its tight capital structure, experienced management team, and projects close to existing processing and port infrastructure.

Capital Structure and Shareholder Support

Charger Metals maintains a lean capital structure with 90.6 million ordinary shares on issue post recent placements and a market capitalisation of approximately A$8.6 million. The company holds A$2.57 million in cash as of March 2026, with additional partly paid shares providing potential funding. Key shareholders include Core Lithium’s subsidiary Finniss Lithium Resources (8.4%), Rio Tinto Exploration (5.2%), and management with nearly 10% voting interest, reflecting strong institutional and insider support. This shareholder base and capital position underpin Charger’s ability to advance exploration and development activities without immediate capital raising pressure.