Fulcrum Lithium unlocks 10.7Mt Nevada resource milestone

Alkali Flats clears the resource milestone

Fulcrum Lithium Ltd (ASX:FUL) has turned a Nevada exploration story into a sizeable resource story, reporting a maiden 10.7 million tonne lithium carbonate equivalent (LCE) resource at Alkali Flats after the 30 June 2026 reporting period. The estimate contains 4.33Mt of measured and indicated resources and 6.37Mt inferred, with the company describing it as the seventh-largest reported domestic lithium resource in the United States.

The resource was announced on 4 August and is therefore a subsequent event rather than a result included at balance date. It was built on three drilling phases, 63 holes and 25 kilometres of controlled-source audio-frequency magnetotelluric data. At a 400 parts per million lithium cut-off, the total resource comprises 3.57 billion tonnes grading 563ppm lithium, with 40% classified as measured and indicated.

Drilling expanded the deposit’s scale

The year’s key field program was the 39-hole, 5,787-metre Phase 3 campaign, which reduced spacing in the project core from about 2,000 metres to roughly 600 metres. Thirty-four holes intersected lithium mineralisation above 300ppm, including 147.9 metres at 507ppm lithium in AF3-E13 and 112.8 metres at 546ppm in AF3-E14.

Fulcrum says the mineralised zones are continuous over more than 8 kilometres of strike and remain open in three of four directions. Those results support the resource model, although the size of the estimate does not by itself establish economic viability. Further drilling, processing studies, permitting and development work remain necessary before any mine decision could be considered.

Metallurgy offers a processing lead

Metallurgical work produced lithium extraction rates of 93% to 96% in seven-day mini-column leach tests on selected Alkali Flats samples. Hydrocyclone separation reduced mass by between 26% and 41%, cut carbonate by 41% to 54% and increased grade by 13% to 27% in the samples tested. The company is continuing multi-pathway test work to identify the lowest-cost processing route.

Dry Canyon provides a second exploration option, but it is earlier stage. Surface sampling found 31 of 62 samples above 300ppm lithium, including six above 1,000ppm, while a 13-kilometre CSAMT survey interpreted claystone extensions more than 500 metres thick in places. Fulcrum is planning a maiden drill program, meaning the geophysical interpretation has not yet been tested by drilling.

Cash position puts the next phase under pressure

The financial statements show why the resource milestone comes with a substantial qualification. Fulcrum’s FY2026 net loss narrowed to $1.17 million from $2.22 million, but cash fell from $5.96 million to $1.58 million. The company used $1.11 million in operating activities and $3.25 million on exploration and development, while capitalised exploration and evaluation assets rose to $6.75 million.

KPMG issued an unmodified audit opinion but highlighted a material uncertainty that may cast significant doubt on Fulcrum’s ability to continue as a going concern. The directors’ forecasts assume additional funding, with expenditure to be reduced if that funding is not secured. That makes the terms, timing and scale of the next financing as important as the headline resource itself.