A$918,000 cash supports 1.72 quarters as West Cobar prepares drilling

Cash runway tightens as Salazar drilling approaches

West Cobar Metals Limited (ASX:WC1) is approaching its most important exploration test of the year with only A$918,000 in cash and no debt on 30 September. The company reported A$533,000 of relevant quarterly outgoings, implying an estimated 1.72 quarters of funding at that spending rate, while acknowledging that negative operating cash flow is expected to continue.

“Location of the Salazar Critical Minerals Project.”

The immediate operational focus is Salazar in Western Australia, where West Cobar plans to begin its first scandium-focused aircore campaign in October, subject to approvals and final arrangements. The programme, for which Wallis Drilling has been engaged and a Programme of Work application submitted, has been expanded from the Newmont deposit to include the Benriach prospect. The timing builds on the previously outlined October Salazar drilling campaign.

Newmont and Benriach drilling target higher-grade scandium

“Scandium mineralisation distribution in the Newmont Deposit of the Salazar Project, WA.”

At Newmont, closer-spaced drilling of roughly 100 metres by 50 metres will test the continuity and distribution of higher-grade scandium zones, as well as possible extensions to the existing resource. The current inferred scandium resource is 15 million tonnes at 153 parts per million Sc₂O₃, based on drilling originally designed for rare earth element and titanium dioxide resource definition.

Benriach offers a separate target around 10 kilometres south-west of Newmont. Historical reverse-circulation drilling intersected 27 metres at 102ppm Sc₂O₃ from 171 metres in amphibolite bedrock, while aeromagnetic interpretation has identified a zone where that mineralisation enters the weathered profile. Planned aircore holes will test the overlying and adjacent saprolite for scandium enrichment.

Metallurgy remains promising but incomplete

Salazar also hosts an inferred 230Mt resource grading 1,178ppm total rare earth oxides, including elevated heavy rare earths such as dysprosium and terbium, alongside titanium dioxide, gallium and alumina resources. Metallurgical testing has so far produced up to 81% scandium extraction through atmospheric-pressure acid leaching and up to 39% in bioleaching screening.

Those results are early-stage rather than project economics. West Cobar says further work is needed to establish recoveries, reagent requirements, costs and flowsheet performance, including the potential for heap leaching, mixed rare earth carbonate production and an integrated demonstration pathway. The company also intends to pursue potential US funding and offtake opportunities, although no outcome was reported.

Cobar results disappoint while funding remains the constraint

In New South Wales, Blind Freddie aircore drilling was completed, but assays received after the quarter contained no significant results. West Cobar is still progressing land access and approvals for a ground gravity survey at Lilyvale, where a strong gravity response and historical geochemical anomalism support further concealed copper-target evaluation. Bulla Park retains an inferred resource of 20Mt at 0.30% copper, 0.10% antimony and 4.7 grams per tonne silver.

“WC1 holds district scale exploration tenure west of Cobar.”

“Lilyvale gravity contours, historical geochemistry and proximity to Bulla Park.”

Caption and image © West Cobar Metals Limited. From “Quarterly Activities/Appendix 5B Cash Flow Report”, 30 Oct 2026.

The company received an approximately A$171,000 research and development tax refund during the quarter and discontinued the proposed Baxter Fluorspar acquisition after due diligence. That cash support does not remove the central financing question: the FY2026 funding warning had already highlighted dependence on future funding, and West Cobar now says it will raise capital when it considers that necessary and appropriate. The next test is whether Salazar drilling can deliver useful results before the cash balance becomes the dominant story.