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West Cobar Metals (ASX:WC1) has this week reeled in a significant first-up gallium estimate at Salazar, with the 263 million tonne MRE adding to the critmins project’s existing rare earths, titanium oxide, scandium, and alumina resources and going some distance to establishing it as a multi-commodity prospect.
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The maiden gallium MRE, based on the Newmont and O’Connor deposits, now sits at 263Mt at 26ppm gallium (35ppm Ga₂O₃), using a 20ppm GA stop.
Broken down, the Newmont deposit contributed some 194 million tonnes at 26 parts per million gallium to the now-finalised Salazar project estimate, while the O’Connor deposit added the other 69Mt at 26ppm.
Metallurgical testwork has indicated gallium could be recovered alongside rare earths and scandium on-site, West Cobar explained, but more exploration is needed to confirm recoverability and processing performance.
“We’re very pleased to report a very large initial MRE for gallium as a by-product at Newmont and O’Connor,” West Cobar’s MD, Matt Szwedzicki, said.
The find is well-timed, of course, considering the wider geopolitical landscape around critmins today, and that’s something West Cobar’s helmsman was quick to point out today. “Gallium’s a high-value critical mineral − the current price is US$284 a kilogram − which has the potential to enhance economics.”
One of the biggest reasons for that is China’s ongoing export restrictions on gallium, which has led to growing supply shortages right when there’s a spiking global demand for the critmin to make computer chips and semiconductors.
Gallium being added to Australia’s planned Critical Minerals Strategic Reserves is “further evidence” it’s becoming very important, Mr Szwedzicki added.
“West Cobar has now published JORC resources for each of the strategic resource commodities [that is, antimony, gallium, and rare earths] as prioritised by the Australian government for that reserve,” he pointed out.
Very true, of course − and that’s why West Cobar is now going to rush into further metallurgical testings to refine the recovery process and explore more resource extensions with planned aircore drilling programs.
Today, WC1 shares have been +15% higher, at 3c each.
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