MRG Metals Funds First Diamond Drilling at Garies Rare Earth Project

Garies drilling moves from promise to resource definition

MRG Metals Limited (ASX:MRQ) has funded the next test of its Garies rare earth project, committing to 380 metres of diamond drilling at DrillTarg as it works towards a maiden JORC (2012) Mineral Resource Estimate. The programme will provide the first diamond core drilled at Garies and is backed by a total A$1.2015 million raised through a placement and Share Purchase Plan.

The capital follows a run of high-grade results at DrillTarg and Ryshoek, including a peak intersection of 6.6 metres at 4.49% Total Rare Earth Oxide. Earlier metallurgical work recovered about 72% of monazite to a concentrate grading roughly 51% monazite, with the company reporting a pathway to recoveries above 80%. The Garies funding round had previously been framed around accelerating resource work and progressing the mining licence.

Gallium adds a second mineral-processing question

MRG is also testing whether the Garies mineralisation offers a gallium opportunity alongside its rare earth content. Eighty-five magnetite-vein drill samples averaged 290 parts per million Ga₂O₃, with individual drill samples reaching 450 ppm and two rare earth-rich concentrates assaying 880 ppm and 573 ppm. The company says mapping identified gallium in free pyrite grains, which make up about 5% of the vein and contain approximately 0.4% gallium.

Further testwork is planned to assess concentration of the gallium-bearing pyrite. That work remains at an early evaluation stage: the quarter's report does not establish a gallium resource, commercial recovery route or economic outcome.

Mining right accepted, but approval remains conditional

After quarter end, South Africa's Department of Mineral and Petroleum Resources accepted MRG's Garies Mining Right application and associated Environmental Authorisation application. The acceptance starts a formal evaluation process and does not authorise mining. The application seeks an initial 10-year term, while the company must still address consultation, environmental, water, nuclear regulatory and black economic empowerment requirements.

Among the immediate obligations is submission of BEE ownership documentation by 22 November 2026, consistent with the stated 30% minimum BEE shareholding requirement for new South African mining rights. The company says a minister or delegate is expected to decide whether to grant the right within 300 days of acceptance, subject to the required evaluation.

Mozambique assays are the next near-term exploration test

In Mozambique, MRG completed 99 step-out auger holes across about 1.6 square kilometres at Adriano Target Area 2, using 20-metre and 200-metre grids around exploration pits. Laboratory results are expected late in the December quarter or in the first quarter of 2027. The Adriano mineralised footprint had earlier been outlined visually, but no Mineral Resource has yet been established.

The company says heavy minerals were visually logged on the northern, western and southern edges of the wider grid, suggesting the mineralised area may extend in those directions. At nearby Fotinho, 26 of 57 holes were above 3% total heavy minerals over their full drilled depth, with a best result of 7.69% THM over one metre. Those results remain exploration indicators until the broader drilling, assay and mineralogical work is completed.

Cash position leaves little room for delay

MRG spent A$223,259 on exploration and evaluation during the quarter and reported A$495,000 in cash at 30 September. On the Appendix 5B calculation, that represented an estimated 1.10 quarters of funding, with no unused finance facilities. The company said it did not expect to maintain the same level of net operating cash flows because director fees are to be paid in shares, subject to shareholder approval.

The post-quarter SPP raised a further A$476,000, according to the cash flow report, extending the funds available for the planned Garies drilling and survey programme. The practical test now is whether MRG can convert that funding into a maiden resource, advance the mining approval process and deliver credible assays from Adriano before another capital decision becomes necessary.