AuKing’s Tundulu results grow as funding pressure emerges

Tundulu drilling delivers breadth and grade

AuKing Mining Limited (ASX:AKN) has a compelling exploration story at Tundulu, but a short cash runway to match it. The company completed more than 5,000 metres of a planned 15,000-metre drilling program at the Malawi rare earths project during the September quarter, reporting wide, near-surface mineralisation across several parts of the Nathace Hill target.

The headline results include 91 metres at 1.51% total rare earth oxides from 40 metres in hole 26NH005, including 15 metres at 3.40%, and 80 metres at 1.54% TREO from surface in hole 26NH029. Step-out holes on the western margin also returned 72 metres at 1.51% TREO from surface and 22 metres at 1.50% TREO, supporting the company’s view that mineralisation extends beyond the initially targeted footprint. The quarter’s results add to the western flank drilling results previously reported by AuKing.

Heavy rare earth enrichment sets Tundulu apart

Grade is only part of the Tundulu proposition. AuKing reported unusually high proportions of heavy rare earths and yttrium in several intervals, including 8 metres in 26NH005 where HREE plus yttrium represented 16.09% of TREO, and 42 metres in 26NH029 at 11.46% of TREO. The company says this signature distinguishes Tundulu from more conventional carbonatite-hosted deposits, although the project remains at the exploration stage and no resource or economic study is reported in this filing.

Two diamond holes were extended beyond their planned 300-metre depths, reaching 400 metres and 510 metres, with assays still pending. AuKing is also planning an approximately 1,000-metre hole beneath Nathace Hill, following the planned 1,000m diamond hole announced in September. More than 2,000 samples were awaiting assay at quarter-end, while over 1,300 metres of diamond core still required export permits before preparation.

Malawi and Greenland broaden the critical minerals portfolio

AuKing completed its acquisition of Green Exploration on 13 October, taking control of the Machinga Heavy Rare Earths Project and several other exploration licences in Malawi. Machinga covers 200.4 square kilometres and historical drilling cited by the company indicates hard-rock grades of about 0.6% to 1.4% TREO, alongside unusually high heavy rare earth proportions. Those figures are historical exploration data, not a current mineral resource.

The company has also agreed to earn up to 75% of the Qeqertaasaq niobium and rare earths project in western Greenland. The staged deal carries no acquisition payment on commencement, but would require AuKing to sole-fund €10 million of exploration over six years. The project’s historical shallow drilling included intervals such as 15.9 metres at 0.80% niobium pentoxide and 5.22 metres at 2.73%, while the proposed earn-in remains subject to due diligence and ASX confirmation on listing-rule re-compliance. The transaction was first outlined in Greenland niobium earn-in.

Cash position puts funding back in the frame

AuKing ended September with $3.418 million in cash after a quarterly operating outflow of $2.815 million, including $1.857 million spent on exploration and evaluation. On the company’s calculation, that equates to 1.21 quarters of funding, assuming the current level of net operating cash outflows continues.

That is the filing’s central tension. AuKing says it intends to maintain Tundulu drilling and undertake exploration across other interests, while pointing to its ability to raise funds and the possible exercise of options that could provide another $1.99 million by the end of December. Separately, an underwriting agreement covers up to approximately $9.14 million of potential proceeds from options exercisable at $0.03 through April 2027. Neither source of capital is presented as guaranteed cash in hand, leaving the pace of drilling and the timing of future funding closely connected.