Vital Metals Reports 1.87 Quarters of Funding and 192.7Mt Tardiff Resource

Tardiff Drilling Pushes Beyond Existing Resource

Vital Metals Limited (ASX:VML) has added weight to the development case for its Tardiff deposit in Canada, with all assays from this year’s drilling confirming mineralisation beyond the current 192.7 million tonne resource envelope. The company says mineralisation remains open in multiple directions, although any increase to the reported resource is still subject to an updated estimate and Competent Person determination.

The 2026 program completed 17 diamond holes totalling 1,824 metres at Tardiff, alongside three exploration holes covering 279 metres at the R-Zone and S-Zone targets. Results included 102 metres at 1.47% total rare earth oxides from four metres, 47 metres at 1.66% TREO from 37 metres and 52 metres at 1.35% TREO from 55 metres, including a six-metre interval at 3.86% TREO.

The latest drilling builds on the July Tardiff drilling results, which had already reported mineralisation outside the existing resource and anomalous gallium. Vital said neodymium-praseodymium accounted for approximately 22% to 27% of contained TREO across the key intersections. Gallium oxide averaged 182 parts per million across the 102-metre intercept, with mineral deportment studies and metallurgical test work planned to assess the significance of those values.

Resource Update Remains Key to the 2027 Study

Vital is now incorporating the assays into an updated three-dimensional geological model and Mineral Resource Estimate. The work will assess potential resource growth and whether selected Inferred material can be converted to the Indicated category. The Tardiff pre-feasibility study remains targeted for completion in the first quarter of 2027, making the resource update an important step between encouraging drill results and a more developed project assessment.

That technical progress sits alongside a much tighter financial position. Cash fell from A$3.755 million at the start of the quarter to A$2.396 million at 30 September, after A$663,000 of operating outflows, A$641,000 of investing outflows and A$52,000 of financing outflows. Exploration and evaluation spending accounted for A$616,000, while the company reported no mining production or development activity during the period.

Arbitration Costs Add Pressure to Limited Funding

Using its quarterly outgoings, Vital estimated available funding at 1.87 quarters and warned that operating outflows are expected to rise in the December quarter because of legal costs linked to the Avalon arbitration. Avalon alleges that Cheetah Resources and Nechalacho Resources breached a co-ownership agreement and is seeking at least C$16.8 million in damages over core samples said to have been rendered unusable in the August 2025 wildfire. Cheetah rejects the claim and plans to defend it at a hearing scheduled for November 2026.

The company said it is considering non-dilutive funding sources, including the sale of remaining ore stockpiles, and expects proceeds from an insurance claim currently in progress. It cautioned that neither the timing nor the amount of any insurance recovery can be assured. The funding disclosure arrives after an earlier going-concern warning, which identified uncertainty over the company’s ability to continue as a going concern despite capital raised during the financial year.

Vital also enters the next phase with interim leadership: Chair Alexius Chan became interim chief executive officer in August after Lisa Riley left the CEO and managing director roles, while David Herlihy joined as an independent non-executive director and Andrew Nesbitt resigned from the board. The resource update, arbitration outcome, insurance recovery and appointment of a permanent CEO now sit on the same near-term timetable, with limited cash providing little room for delay.