Australian Mines Advances Drilling at Flemington Scandium Project

Drilling Program Set to Unlock Flemington’s Growth Potential

Australian Mines Limited (ASX:AUZ) is gearing up to commence a multi-purpose drilling campaign at its 100%-owned Flemington Scandium Project in New South Wales, pending final approval from NSW Resources. This move follows a series of studies positioning Flemington as one of the globe’s highest-grade scandium resources, with a 2025 Mineral Resource Estimate (MRE) reporting 6.3 million tonnes at 446 ppm scandium, overwhelmingly classified as measured and indicated.

The drilling program is designed to extend the resource footprint by targeting geological units adjacent to the current mineral resource, particularly pyroxenitic units of the Tout Intrusive Complex that remain underexplored. This resource extension drilling aims to test lateral boundaries and improve the understanding of scandium mineralisation continuity, potentially adding upside beyond the resource base that underpins the ongoing pre-feasibility study (PFS).

Supporting Metallurgical and Infrastructure Advances

Alongside resource expansion, dedicated metallurgical drilling will supply representative samples to refine and optimise the hydrometallurgical flowsheet that has already demonstrated a robust scandium recovery rate of 90.8%. This process involves high-pressure acid leaching followed by solvent extraction and precipitation steps, forming the backbone of the project's processing strategy.

Additionally, condemnation drilling will investigate proposed sites for critical infrastructure such as the processing plant and tailings storage facility. This step is crucial to avoid sterilising mineralisation beneath these areas and to ensure optimal project layout and environmental compliance as the PFS progresses.

Assessing a Significant Production Scale-Up

The PFS is concurrently evaluating the feasibility of scaling scandium oxide production from the initial 60 tonnes per annum (tpa) to as much as 180 tpa, a threefold increase based solely on the existing mineral resource without relying on new discoveries. This assessment responds to growing scandium demand and analyses suggesting a structural deficit in Western-available supply through 2040, factoring in other projects like Syerston, Nyngan, and Rio Tinto’s operations.

Managing Director Andrew Nesbitt emphasised that while the scale-up does not depend on the success of resource extension drilling, the upcoming program will provide valuable data to support longer-term growth and metallurgical optimisation.

Navigating Approvals and Next Steps

The commencement of drilling awaits the receipt of the Assessable Prospecting Operation approval from NSW Resources, a standard regulatory step in New South Wales. No new assay results are reported at this stage, highlighting that the current announcement focuses on operational readiness and strategic positioning rather than immediate resource updates.

This drilling phase is a critical component of the broader PFS, which also incorporates environmental studies, engineering design, and community engagement. The PFS aims to deliver a comprehensive evaluation of Flemington’s economic and technical viability, with a timeline expected within the next 6 to 9 months.