Chilwa Minerals Doubles Mpyupyu Resource and Defines Niobium-REE Target

Mpyupyu Resource More Than Doubles, Setting Development Stage

Chilwa Minerals Limited (ASX:CHW) has dramatically expanded its flagship heavy mineral sands (HMS) resource at Mpyupyu, more than doubling it to 109.6 million tonnes at a 1% total heavy mineral (THM) cut-off. Approximately 89% of this resource is now classified as Measured and Indicated, boosting geological confidence ahead of development planning. Contained heavy mineral concentrate rose 62% to 3.61 million tonnes, with a notable high-grade core of 50.6 Mt at 4.65% THM identified at a 3% cut-off. This upgrade positions Mpyupyu as Chilwa’s primary development focus within its broader Chilwa Critical Minerals Project in Malawi.

The company’s Managing Director Cadell Buss described the milestone as a “defining step” in Chilwa’s transition from explorer to potential developer, highlighting the resource upgrade as a foundation for design, procurement, and approval processes.

Nakombe Niobium and Rare Earths Exploration Target Emerges

Simultaneously, Chilwa has defined a maiden conceptual Exploration Target of 34–51 million tonnes at its Nakombe South alkaline-syenite intrusion, marking a significant advance in its niobium and rare earth elements (REE) exploration. Drilling results underpinning this target include 385 metres of continuous niobium mineralisation from surface in hole MPYDD009, averaging 0.17% Nb₂O₅, with higher-grade zones of 0.24% Nb₂O₅ over 60 metres. Laboratory assays from hole MPYDD007 confirmed a high-grade porphyry core featuring 37.2 metres at 0.29% Nb₂O₅, alongside critical metals tantalum, gallium, and rare earths, with low thorium and uranium levels.

The mineralised footprint extends at least 270 metres strike and remains open in multiple directions, with drilling ongoing to support a maiden resource estimate. This multi-commodity system could add significant strategic value given the global demand for niobium and REEs in infrastructure, aerospace, and clean energy technologies. The Exploration Target remains conceptual, with further drilling required to convert it into a Mineral Resource.

New Heavy Mineral Sands Discovery at Mpyupyu West Expands Project Footprint

Adding to the momentum, Chilwa discovered a new HMS field at Mpyupyu West, which has rapidly expanded from an initial ~5 km² to over 17 km² within weeks of reconnaissance sampling. This area now exceeds the combined size of the existing Mpyupyu Dune and Flat deposits. Early sonic drilling has intersected a mineralised, free-dig saprolite unit from surface, with follow-up step-out drilling planned to test whether this new field physically links with the upgraded Mpyupyu deposits.

The proximity of Mpyupyu West to the Nakombe REE/niobium target offers potential infrastructure and operational synergies, enhancing the overall project economics. Chilwa is concurrently advancing its first scoping study covering all Measured and Indicated mineral sands resources, now underpinned by the upgraded Mpyupyu estimate, and is engaging with logistics partners to optimise transport costs via dry-port and rail infrastructure.

Rare Earth Mineralisation Confirmed Beneath Mposa Deposit

In a complementary development, assays from 200 samples beneath the Mposa HMS deposit confirmed rare earth element mineralisation in basal clays across an approximately 8-kilometre corridor. The clays average 525 ppm total rare earth oxides (TREO), with magnet rare earths constituting around 21% of TREO. This discovery raises the prospect of co-extracting heavy mineral sands and rare earths from a single site, pending metallurgical test-work underway at ANSTO Sydney to assess the recoverability of ionic-adsorption clay-hosted REEs.

Corporate Advances: Nasdaq Dual Listing and Board Strengthening

On the corporate front, Chilwa has progressed its proposed Nasdaq dual listing, publicly filing its Registration Statement on Form F-1 with the US Securities and Exchange Commission (SEC) on 9 July 2026. The offering of American Depositary Shares (ADSs), each representing 10 ordinary shares, aims to tap the deep US equity market and strategic investors focused on critical minerals. The SEC review process continues, with underwriting arrangements under negotiation. The listing is intended to complement Chilwa’s existing ASX presence and provide additional financial flexibility for project advancement.

The company also appointed Graham Hewson as a Non-Executive Director, a seasoned executive with over 30 years’ experience in global mineral sands and titanium sectors, strengthening Chilwa’s board expertise as it moves toward development.

Additionally, Chilwa commenced third-party laboratory revenue by servicing Lindian Resources’ Kangankunde Rare Earths Project in Malawi, validating the technical capability of its in-country sample preparation facilities.

Cash Position and Funding Outlook

Chilwa ended the quarter with $1.10 million in cash and equivalents after incurring non-recurring Nasdaq listing costs. Exploration expenditure was elevated due to accelerated drilling programs and assay equipment investments. The company acknowledges that operating outflows in the quarter included extraordinary costs unlikely to recur. Chilwa is in advanced stages of capital raising associated with the Nasdaq listing and remains confident in its funding prospects based on prior successful equity raises and ongoing market access.

Looking ahead, the company is focused on advancing resource definition drilling at Nakombe, expanding exploration at Mpyupyu West, updating the Northern Shore Mineral Resource Estimate, completing metallurgical test-work on basal clays, and progressing its comprehensive scoping study with T.Z Minerals International.