Nimy Resources (ASX: NIM) has announced the *maiden resource* of gallium and rare earths. This significant development highlights a high-grade discovery that strategically positions the company within the evolving critical minerals market.
Details of the maiden resource
The newly estimated resource reveals an inferred *JORC gallium* resource totaling 7.23 million tons, with an impressive grade of 102 grams per ton of Ga2O3. This estimate is based on a cut-off grade of 70 grams per ton, resulting in approximately 740 tons of contained gallium trioxide. Furthermore, the resource includes 538 parts per million (ppm) of *Total Rare Earth Oxides* (TREOs), equating to about 3,890 tons of contained TREOs.
This resource estimation focuses on the oxide and transition zones extending to approximately 100 meters in depth. Notably, the mineralization of gallium and total rare earth oxides (TREOs) beyond this depth is not included in the current estimates. However, these deeper mineralizations are part of the exploration targets, indicating potential quantities of up to 26 million tons at 100 grams per ton of gallium oxide (Ga2O3) and 100 million tons at 810 parts per million (ppm) of TREO.
Exploration and future potential
The resource model encompasses a footprint of approximately 0.4 square kilometers. A surface soil sampling program and an airborne magnetic survey are currently being conducted across a larger grid of about 30 square kilometers surrounding the significant gallium and rare earth discovery in Block 3.
Furthermore, the mineralization of gallium and total rare earth oxides (TREO) remains open along strike and at depth beyond the existing resource estimate. This suggests that additional opportunities for discovery may arise as exploration advances.
Gallium and rare earth elements significance
The incorporation of rare earth elements (REEs) notably increases the value of the Block 3 project. With the demand for these essential minerals on the rise, Nimy Resources is well-positioned to take advantage of this growing trend.
Nimy’s exploration efforts extend beyond Block 3. The company has pinpointed several additional areas with potential for gallium and rare earth element (REE) mineralization. Key prospects include Masson, Thompson, and Vera, highlighting a promising outlook for Nimy.
Exploration targets and future initiatives
Recent studies by SRK have identified five new exploration targets for Ga2O3 and one for REO within the Block 3 project area. While these targets are conceptual and require further exploration to accurately estimate mineral resources, they present a considerable opportunity for Nimy. The targets suggest a high likelihood of mineralization extending west and northwest, indicating potential for significant discoveries.
Increasing focus on domestic gallium production
The global demand for gallium and other critical minerals is rising, intensifying the push for domestic production. Currently, China dominates the gallium supply chain, controlling approximately 98% of the global market. This monopoly has raised significant concerns about national security and the urgent need for alternative sources.
Growing importance of critical minerals in the market
As the demand for critical minerals rises, companies like Nimy Resources play a pivotal role in the industry. The recent focus on gallium recovery has gained traction among major players, including Alcoa, which has secured significant funding for gallium projects in Australia. This collaborative effort signals a strong movement toward establishing domestic sources of gallium and rare earth elements, essential for applications in electronics, renewable energy technologies, and defense systems.
Nimy Resources’ recent resource announcement strengthens its position within the sector. As exploration efforts progress, the potential for additional discoveries remains promising. Investors and industry stakeholders are likely to monitor Nimy’s developments closely as the company aims to fully harness its high-grade gallium and rare earth resources.