WA1 Resources (ASX:WA1) has struck more ‘broad’ niobium intercepts from infill drilling at the Luni prospect within its West Arunta Project in Western Australia.
The hits come from reverse circulation (RC) and diamond drilling completed in 2023 at the central and western zones of the prospect, and WA1 says they demonstrate further continuity of the shallow ‘high-grade’ blanket of niobium mineralisation in the area.
WA1, which has a $686 million market capitalisation, is progressing with field activities in the area and plans to resume diamond drilling over the coming days. The company will mobilise a second rig to begin spinning at the Luni site in April.
Further, the company is busy conducting metallurgical testwork on Luni samples to demonstrate the viability of flotation to separate the key niobium-bearing minerals from the project.
Some of the top new RC and diamond niobium hits include hole LUDD23-016 with 41.1m @ 1.5% Nb2O5 from 103.4m and LURC23-119 with 11m @ 2.2% Nb2O5 from 48m.
WA1 expects to continue receiving and publishing assays from the 2023 work over the coming weeks and months to lead into a planned maiden Mineral Resource Estimate (MRE) for Luni during the June quarter.
Managing Director Paul Savich says upon retrieving more samples for ongoing metallurgical testwork, the upcoming diamond drilling program will then return to laterally defining the carbonatite footprint in the area and further infilling key mineralised zones.
The news comes amid WA1’s appointment of Clovis Sousa as its Niobium Processing Advisor.
“Clovis brings decades of niobium processing experience to the company as we look to continue to unlock further value at Luni through considered testwork programs, with our first formal flotation testwork currently underway,” Savich says.
By the end of its 2023 drill season, WA1 had completed 200 RC holes and 30 diamond holes, as well as 5 diamond tails, at the Luni carbonatite. With yesterday’s (21 February 2024) announcement, the company has reported the results for 142 of these holes.
Alongside its current fieldwork and planned drilling, the company is also preparing to launch heritage, environmental, and geophysical surveys in the area.
WA’s Luni deposit has thrust the company into the spotlight over the past 18 months, with the niobium discovery in the area prompting a phenomenal share price surge for the company.
The company’s West Arunta discovery has been complemented by rising interest in niobium, which is listed as a critical metal in Australia — meaning the federal government views it as vital for the wellbeing of the global economy but at potential risk of supply disruption.
WA1 Resources had about $18.7 million cash and cash equivalents at hand at the end of December 2023, according to its latest quarterly report. On 18 January, the company launched a $40 million placement to advance work across its West Arunta Project.
Images: WA1 Resources
