Australasian Metals is moving toward a December decision on its proposed Côte d’Ivoire expansion, with Atex auger drilling expected to begin in November. The explorer ended September with approximately $3 million in cash and no debt after a $1.05 million placement.
- Atex auger drilling expected to start in November
- Option covers up to 75% of Atex and 51% of Alliance
- Historical lithium mineralisation extends across more than 800m of strike
- May Queen South bulk samples averaged 41.8% Al₂O₃
- $2.997 million cash and no debt at 30 September
Atex option moves toward December decision
Australasian Metals Limited (ASX:A8G) is approaching the first real decision point in its Côte d’Ivoire strategy, with its exclusive option over the Atex and Alliance lithium projects due to expire on 6 December 2026. The company is using the three-month option period for technical, legal, tenure, financial and tax due diligence before deciding whether to proceed.
The proposed transaction would give Australasian a 75% interest in Atex and a 51% interest in Alliance, subject to exercising the option and satisfying conditions precedent. The deal requires a further A$1.4 million cash payment on completion, in addition to the A$100,000 option fee. Firering Strategic Minerals plc would retain 15% of Atex and be free-carried through to a final investment decision, while Alliance remains at the application stage.
The option builds on the company’s Côte d’Ivoire lithium option, which was previously described as a three-month pathway into the two projects. At Atex, the licence covers 134.96 square kilometres and its current renewal period expires on 15 November 2027.
Historical drilling sets up November auger program
The geological case for Atex rests on historical drilling at Spodumene Hill, where lithium-bearing, spodumene-rich pegmatites extend over more than 800 metres of strike and remain open along strike and at depth. The strongest reported intercept was 67.97 metres at 1.23% Li₂O, including 27 metres at 2.13% Li₂O, although the company cautions that the reported widths are apparent rather than true widths.
Australasian has inspected historical diamond core and confirmed that it is in good condition, while reverse-circulation chips from the 2024 campaign have been securely stored and catalogued. A 120-kilogram spodumene-lepidolite pegmatite sample has also been sent to laboratories in South Africa and China for preliminary metallurgical testwork.
Priority auger targets have been defined in the northern licence area using rubidium soil anomalism alongside varying lithium and niobium anomalism. No historical subsurface exploration has been conducted there, and auger drilling is expected to start in November. Preparations for future diamond drilling, including access tracks, drill pads, camp refurbishment and contractor selection, are also under way.
Tantalum potential remains promising but unverified
Atex also carries a tantalum angle, based on historical columbo-tantalite sampling rather than modern in-situ resource definition. Historical concentrate grades reached 14,700 grams per cubic metre in Zone 2 and 4,600 grams per cubic metre in Zone 1, but the figures relate to recovered concentrate from colluvial material, not in-situ Ta₂O₅ grades. The original laboratory sheets have not been located or independently re-assayed.
The company’s historical tantalum review also pointed to 2022 testwork in which small colluvial composites responded to gravity and magnetic separation. That work was indicative only: the sample size limited its reliability, and further testing is needed to establish recoveries, concentrate grades and processing performance. Tantalum will be included in the multi-element assay suite for Atex’s planned lithium drilling.
Cash funds a broad exploration portfolio
The September quarter ended with cash of approximately $2.997 million and no debt, following the issue of 8,076,918 shares at $0.13 to raise $1.05 million. The placement is earmarked for Atex and Alliance exploration and working capital. On the company’s Appendix 5B methodology, cash represented an estimated 11.57 quarters of funding based on relevant quarterly outgoings of $259,000, though exploration spending is likely to change as drilling and testwork accelerate.
Outside Côte d’Ivoire, May Queen South bulk samples returned an average composite alumina grade of 41.77%, with individual samples reaching 58.7%. Metallurgical testwork is planned to examine processing options, product upgrade potential and possible recovery of titanium, gallium and other elements. Field programs have also started at Barrow Creek and Mt Peake in the Northern Territory, with results intended to shape early-2027 exploration priorities.
The immediate sequence is clear but still carries several gates: November auger results, preliminary metallurgical findings, tenure and permitting work, and the December decision on whether to commit the remaining cash consideration for Atex and Alliance. Until those steps are completed, the Côte d’Ivoire opportunity remains an option backed by historical evidence, not an acquired producing asset.
Bottom Line?
The next six weeks should determine whether historical Atex results become a funded exploration program or remain an unexercised option.
Questions in the middle?
- Will Australasian Metals exercise the Atex and Alliance option before 6 December?
- What will November auger drilling reveal beneath the untested northern Atex licence area?
- Can metallurgical testwork establish commercially relevant lithium or tantalum recoveries from the historical targets?