Charger Metals has expanded its Medcalf lithium resource to 10.6 million tonnes at 1.0% Li2O, backed by strong metallurgical results and a fresh $3.75 million cash injection from selling its Bynoe project.
- Medcalf lithium resource grows 34% to 10.6Mt at 1.0% Li2O
- Ore-sorting boosts lithium grade by 31% with 95% recovery
- Bynoe Lithium Project sold for up to $14.75 million
- Further 10,000m drilling program committed at Medcalf
- Cash position rises to ~$5.1 million post-Bynoe sale
Medcalf Resource Expansion Signals Growing Lithium Potential
Charger Metals NL (ASX:CHR) has delivered a substantial upgrade to its Medcalf lithium deposit, increasing the Inferred Mineral Resource Estimate (MRE) by 34% to 10.6 million tonnes at 1.0% Li2O and 107ppm Ta2O5. This lifts contained lithium oxide to 106,000 tonnes, placing Medcalf among a select group of Australian lithium deposits exceeding 10 million tonnes yet outside billion-dollar market caps. The resource remains open both at depth and along strike, underpinning confidence in further growth.
The company has committed to a 10,000-metre drilling campaign aimed at both infill and extensional drilling, effectively doubling the metres drilled at Medcalf to date. The deposit’s shallow profile, with 81% of the resource within 300 metres of surface, enhances its attractiveness for open-pit mining, supported by initial pit optimisation work assuming a spodumene concentrate price of US$2,000 per tonne.
Ore-Sorting Breakthroughs Boost Grade and Recoveries
Metallurgical testwork at Medcalf has yielded encouraging results, particularly from ore-sorting trials using TOMRA’s X-Ray transmission technology. The process increased lithium grades from 1.01% to 1.32% Li2O, a 31% uplift, while achieving a recovery rate of 94.9%. Tantalum grades also improved by 34% to 147ppm Ta2O5 with a 97.2% recovery. Notably, iron content was slashed by 78%, reducing a key penalty element to just 1.27% in the concentrate.
These outcomes suggest that ore-sorting can effectively remove mining dilution and deleterious iron-bearing waste, potentially streamlining processing and improving economics. Medcalf’s proximity to four spodumene concentration plants within trucking distance and the Esperance Port (~200km) further supports a viable path to market.
Bynoe Sale Provides Capital for Lake Johnston Advancement
In a significant corporate development, Charger completed the sale of its 100% interest in the Bynoe Lithium Project in the Northern Territory to Core Lithium Group (ASX:CXO) for up to $14.75 million. The upfront cash payment of $3.75 million was received in July 2026, with an additional $1 million payable upon delineation of an 8 million tonne resource at 1.0% Li2O. Charger also secured a 1% gross revenue royalty capped at $10 million on lithium product from Bynoe.
This transaction has bolstered Charger’s cash position to approximately $5.1 million, providing the necessary funding to execute the expanded drilling program and scoping study at Lake Johnston. The sale allows the company to focus its resources on advancing Medcalf and surrounding lithium prospects.
Exploration and Mining Studies Progressing
Beyond lithium, Charger continues to explore gold opportunities at its Lake Johnston project, notably following up on high-grade intercepts at the Xmas Gold Prospect. While recent drilling did not extend gold mineralisation, further step-out drilling is planned pending environmental surveys.
Mining studies at Medcalf are advancing, envisaging a combination of open-pit mining with underground long hole open stoping for deeper lodes. Early work confirms the deposit’s critical mass for mining, with conventional equipment and methods anticipated.
Capital Structure and Funding Outlook
Charger maintains a tight capital structure with just 90.6 million shares on issue and a diluted market capitalisation near $7.3 million. Exploration expenditure during the quarter was modest at $324,000, reflecting a focused approach to resource growth and study advancement. Directors’ fees accounted for $122,000 in payments during the period.
With the Bynoe sale proceeds secured, Charger is positioned to fund its near-term objectives without immediate capital raising, though the company continues to evaluate additional project opportunities in lithium and gold sectors that could add strategic value.
Bottom Line?
Charger’s expanded Medcalf resource and robust metallurgical results, backed by fresh capital from the Bynoe sale, set the stage for a pivotal phase of drilling and development at Lake Johnston.
Questions in the middle?
- Will the upcoming 10,000m drilling campaign at Medcalf confirm further resource growth beyond current estimates?
- How will the company’s scoping study integrate the promising ore-sorting results into potential mine planning?
- What new project opportunities might Charger pursue to complement its Lake Johnston lithium and gold focus?