Australasian Metals Reports High Alumina Grades up to 58.7% in Bulk Sampling at May Queen South Bauxite Project

Consistent High-Grade Results from May Queen South Bulk Sampling Program

Australasian Metals completed a comprehensive bulk sampling program at May Queen South, collecting composite samples from three distinct outcrop locations across the deposit in central Queensland. Each bulk sample consisted of ten individual samples weighing approximately 5–6 kilograms each, gathered over a strike length of about 20 metres, resulting in over 50 kilograms per composite. This approach provides a robust dataset for metallurgical evaluation compared to smaller rock-chip samples.

The three composite samples returned total alumina (Al8O3) grades of 39.54%, 41.99%, and 43.78%, averaging 41.77%. Individual samples within these composites ranged from about 39.5% to a high of 58.7%. These results align with previous bulk sampling conducted by the former owner in 2015, reinforcing confidence in the deposit’s grade potential.

Multi-Element Analysis Highlights Titanium and Gallium Recovery Opportunities

Bulk sample analysis revealed a multi-element profile with value beyond primary bauxite extraction. The composites contained titanium dioxide (TiO2) at 5.54%, 4.61%, and 5.76%, averaging 5.30%. Gallium concentrations measured 59.8 ppm, 52.2 ppm, and 61.8 ppm, averaging 57.9 ppm. Reactive silica (SiO2) ranged from 4.22% to 8.21%, averaging 6.61%.

Australasian Metals targets these by-products for recovery during future processing. Earlier rock-chip sampling identified elevated gallium and germanium levels in the area. The bulk samples will support evaluation of extraction methods for these elements alongside the primary bauxite product, potentially enhancing project economics through diversified revenue streams.

Robust Mineral Resource Base Supports Large-Scale Development Potential

The May Queen South deposit hosts a substantial Inferred Mineral Resource of 54.9 million tonnes at 37.5% total Al8O3, 5.2% TiO2, and 7.9% reactive silica, reported under the JORC 2012 code as of 30 May 2023. Located less than 55 kilometres from rail infrastructure, this sizeable resource underpins potential commercial development.

The alignment between recent bulk sampling results and the existing resource estimate enhances confidence in the deposit’s quality and representativeness. While the Inferred classification indicates the need for further drilling to upgrade resource status, positive metallurgical outcomes could unlock significant development opportunities.

Strategic Proximity to Transport Infrastructure Lowers Development Costs

Located centrally in Queensland, the May Queen South project is less than 55 kilometres from established rail infrastructure connecting to the Port of Bundaberg and the main Queensland Rail network towards the Port of Brisbane. This strategic location reduces capital and operating expenses related to transporting bulk materials to export or processing facilities, a key factor in bauxite project economics.

Utilizing existing transport infrastructure eliminates the need for new rail or port development, potentially lowering overall project capital requirements. Access to multiple ports offers flexibility in reaching international bauxite and alumina markets across Asia-Pacific regions.

Upcoming Metallurgical Testwork to Optimize Processing and By-Product Recovery

Australasian Metals plans to submit bulk samples for detailed metallurgical testwork to assess processing options, confirm results with higher confidence, explore TiO2 recovery credits, and investigate extraction routes for gallium and other rare earth elements. These tests will guide product specification and treatment pathway decisions.

Metallurgical testing is vital for project feasibility, cost estimation, and product quality assurance. Testing bulk samples rather than smaller specimens enhances result representativeness. The focus on by-product recovery reflects a modern approach to maximizing value from complex mineral deposits.

Managing Director Emphasizes Grade Confidence and Partnership Development

Managing Director Qingtao Zeng stated that bulk sampling results increase confidence in the May Queen South deposit’s grade potential. He highlighted that forthcoming metallurgical testwork will evaluate processing routes and the recovery of titanium, gallium, and other elements. Zeng noted the project’s combination of a significant Mineral Resource and proximity to transport infrastructure positions it well for development.

The company maintains strong connections with downstream processing and offtake partners in China, Indonesia, and South Korea, actively engaging potential collaborators. This strategy aims to establish product specifications and offtake agreements early, reducing development risks and supporting financing and commercialization.

Bulk Sampling Methodology Ensures Reliable and Representative Data

The bulk sampling program followed a rigorous approach, collecting ten individual samples of 5–6 kilograms each over a 20-metre strike length, totaling over 50 kilograms per composite. Samples were analyzed at ALS Brisbane using the ME-XRF21u method before being sent for metallurgical testing. Detailed location data was recorded for each sample to ensure traceability and quality control.

This composite sampling method provides statistical confidence, mitigating risks of unrepresentative high-grade zones. The substantial sample mass supports multiple metallurgical test runs under varied conditions. Precise sample location documentation facilitates correlation with drilling and geological data.

Balanced Development Strategy Integrates Technical and Commercial Objectives

Australasian Metals’ development plan for May Queen South involves progressing through defined technical and commercial phases. The immediate focus is metallurgical testing to explore processing and by-product recovery, followed by ongoing evaluation of development and commercialization options. This phased approach enables systematic data collection before advancing development.

Engaging potential downstream partners early aligns product requirements and supports commercial success. The company’s networks in Asia’s key bauxite and alumina markets underscore its strategic focus on these high-demand regions.

Future Development Timeline and Commercial Plans Under Review

The next steps include dispatching bulk samples for metallurgical testing and assessing processing and recovery options for titanium, gallium, and other elements. Post-testwork, Australasian Metals will continue evaluating development and commercialization pathways. No specific timelines for testwork completion or development decisions were disclosed in the announcement.

The progression from bulk sampling to metallurgical evaluation and commercial assessment follows standard bauxite project development protocols. Testwork duration depends on complexity and process variations. Investors will monitor updates on testwork outcomes, by-product recovery potential, partnership progress, and commercial development plans. The company’s active engagement with partners indicates ongoing pursuit of commercialization alongside technical evaluation.