MRG Metals Advances Rare Earths and Titanium Ventures with New Gallium Discovery

Garies Project Yields Gallium alongside Rare Earths

MRG Metals (ASX:MRQ) has uncovered a noteworthy critical mineral addition at its 100%-owned Garies Rare Earth Project in South Africa: gallium. Metallurgical analysis revealed gallium oxide concentrations averaging 290 ppm across 85 magnetite-vein drill samples, with peaks up to 450 ppm. Two rare-earth-rich concentrates showed even higher gallium grades of 880 ppm and 573 ppm. This discovery complements the project’s established high-grade monazite mineralisation, which delivers approximately 60% rare earth oxides (REO) with neodymium-praseodymium (NdPr) comprising over 24% of total rare earth oxides (TREO).

The metallurgical testwork, completed earlier this year, confirmed a simple, scalable processing pathway at the DrillTarg deposit, with initial monazite recovery around 72% and a clear route to exceed 80%. The mineralisation is hosted mainly in coarse magnetite veins within silicified granite gneiss, amenable to shallow open-pit mining. MRG has lodged a Mining Right Conversion Application with South African authorities, aiming for a 10-year term to underpin development.

Gallium’s importance is rising, underpinning semiconductors for power electronics, EV fast chargers, 5G networks, and defence radar. At approximately US$367 per kilogram, gallium could represent a valuable by-product stream if further testwork confirms efficient concentration from the pyrite-hosted mineralisation.

Adriano-Fotinho Corridor Expands with High-Grade Heavy Minerals

In Mozambique, MRG’s Adriano and Fotinho licences continue to deliver encouraging alluvial heavy mineral results, reinforcing a district-scale rare earth corridor. Recent assays from the Fotinho licence show 26 of 57 auger holes exceeding 3% total heavy minerals (THM), with standout intersections including 7.69% THM over 1 metre and a weighted average of 2.95% THM over 1.38 metres. These results extend the mineralised footprint across the 396.42 km² combined corridor.

Complementing these findings, the Adriano licence boasts a heavy mineral concentrate comprising 32.2% valuable heavy minerals, including 1.9% monazite and 24.4% ilmenite, with a total rare earth oxide content of 1.46%. Exploration pits dug to bedrock in high-grade target areas have confirmed stable, thick, well-mineralised alluvial terraces, supporting a potential low-strip mining scenario. Step-out grid auger drilling is underway to delineate the deposits’ extent and guide resource definition.

This steady progression builds on earlier assay releases and fieldwork, highlighting the corridor’s potential as a significant rare earth and heavy mineral province within Mozambique’s Namarroi Group.

Titanium Dioxide Joint Venture Nears Production Milestones

MRG’s titanium dioxide interests in Mozambique, held through a joint venture with Sinowin Lithium, have advanced key regulatory and operational milestones. Sinowin completed and submitted the full Category A+ Environmental and Social Impact Assessment (ESIA) for the Corridor Central concession, covering over 17,800 hectares with a combined JORC resource exceeding 2 billion tonnes across Corridor Central and South.

The Mozambique government’s Instituto Nacional de Minas (INAMI) has reaffirmed strong support for the project, with the transfer of mining tenements to the joint venture company in its final stages. Sinowin has committed to fund drilling programs at Corridor North and Marão licences, which are planned to enter the joint venture as production milestones are met, adjusting MRG’s interest accordingly.

Targeting first production in 2027, the JV is progressing the Resettlement Action Plan and groundwork for the Operating Permit and Front-End Engineering Design, positioning the project for a long mine life beyond the initial 26 years estimated in the 2022 Scoping Study.

Olinga Project Adds Uranium Dimension Amid Rising Demand

MRG’s newest addition to its portfolio, the 100%-owned Olinga Uranium and Rare Earth Project in northern Mozambique, has commenced field exploration. Covering 16,535 hectares, the licence exhibits strong radiometric anomalies consistent with uranium-bearing systems and shows a higher uranium-to-thorium ratio than neighbouring licences.

Exploration activities include stream sediment, alluvial, mapping, and outcrop sampling, supported by community engagement. This uranium focus aligns with market dynamics, where global mine production met only about 85% of reactor requirements in 2025, and demand is forecast to more than double by 2040 due to expanding nuclear capacity.

Financial Position and Funding Outlook

For the June 2026 quarter, MRG Metals reported exploration and evaluation expenditure of $317,564 and no production activities. Operating cash outflows were $188,000, with investing outflows of $308,000, leading to a cash balance of $255,000 at quarter’s end, down from $1.05 million previously. The company has no drawn financing facilities and is actively assessing options to secure strategic partners or investments to fund ongoing operations and project development.

MRG’s board acknowledges the short runway of approximately half a quarter’s funding at current expenditure levels but expects to continue operations based on potential strategic investments and cost management, including deferring board payments and limiting discretionary expenses.