Australian Mines Advances Flemington with US$860M Scoping Study and Expands Gold Targets

Flemington Scandium Project Delivers Strong Economic Indicators

Australian Mines Limited (ASX:AUZ) has unveiled compelling results from its SRK Scoping Study for the 100%-owned Flemington Scandium Project in New South Wales. The study, grounded in a cautious scandium oxide price of US$1,500/kg, estimates a post-tax NPV8 of approximately US$270 million with an IRR of 32%. When tested against a market-aligned sensitivity price of US$3,000/kg Sc2O3, the project’s economic potential balloons to a post-tax NPV8 of about US$860 million and an IRR of 74%. These figures underscore the project’s strong margin profile, with a breakeven price of US$815/kg and a low C1 cash cost of US$561/kg Sc2O3.

With 99.4% of the production target classified within Measured and Indicated JORC resource categories, Flemington boasts one of the world’s highest-grade scandium resources. The company is now fast-tracking the project into a Pre-Feasibility Study (PFS) expected to span 6 to 9 months, focusing on mine optimisation, metallurgical testing, environmental assessments, and strategic partnerships. This acceleration aligns with the company’s aim to solidify the project’s viability and funding pathways.

Boa Vista Gold Project Expands with 14 New Targets

In Brazil, Australian Mines has broadened its exploration horizon at the Boa Vista Gold Project, identifying 14 additional prospective gold targets beyond its flagship VG1 prospect. The company has prioritised four targets; Baixão, Zé do Leicha, Almir, and Jair; for imminent drill readiness following encouraging rock-chip assays, including samples grading as high as 31.0 g/t gold. A substantial diamond drilling campaign, planned for up to 10,000 metres, will allocate 30-40% of efforts to these new targets, with the remainder focused on extending and infilling VG1 mineralisation.

This program aims to delineate a district-scale gold system and support the maiden JORC (2012) Mineral Resource estimate anticipated in early 2027. The presence of multiple drill intercepts exceeding the 20-gram metre threshold at VG1, including visible gold, highlights the project’s exploration upside.

Metal Hydride Technology Progresses with Independent Validation

Australian Mines continues to develop its scandium-based Metal Hydride technology, a promising avenue for safe, compact, and dispatchable hydrogen storage. Recent samples submitted to the U.S. Department of Energy’s Hydrogen Materials Advanced Research Consortium (HyMARC) have undergone independent testing, confirming the material’s ability to absorb and release hydrogen repeatedly under isothermal conditions. This durability is crucial for multi-year energy storage applications, positioning the technology as a potential contributor to future clean energy infrastructure and advanced battery systems.

Jequie Rare Earth Project Shows Encouraging Drilling Results

Exploration at the Jequie Rare Earth Project in Bahia, Brazil, has delivered promising outcomes from a recent auger drilling program. At Jequie South, 69% of samples returned total rare earth oxide (TREO) assays greater than 400 ppm, with standout intercepts including 15.0 m at 1720 ppm TREO and 3.0 m at 3055 ppm TREO. Structural faulting appears to control REE concentration through weathering and groundwater transport, with evidence of ionic clay adsorption processes enhancing enrichment.

Jequie North drilling also intersected anomalous REE mineralisation, with a best result of 9.0 m at 1028 ppm TREO. The different geochemical signatures between North and South targets suggest varying mineralisation mechanisms, informing planned follow-up exploration including geological mapping and metallurgical testing.

Corporate Position and Outlook

Australian Mines closed the quarter with a cash balance of approximately AUD 5.24 million, maintaining financial flexibility to advance its portfolio. The company outlined plans to focus on progressing the Flemington PFS, expanding gold drilling at Boa Vista, continuing exploration at Resende, and further developing Metal Hydride technology during the September 2026 quarter.