NGX Limited Uncovers High-Grade Shallow Rutile Near Malingunde Graphite Project in Malawi

NGX's Malawi Assets: Core Natural Graphite with Emerging Rutile Potential

NGX Limited, an Australian-listed exploration and development company, focuses on natural graphite resources in Malawi, West Africa. Its primary asset is the pre-development Malingunde Graphite Project, subject to ongoing technical studies aimed at establishing a cost-effective development strategy leveraging the project's high-grade, low-impurity graphite concentrate. The Malingunde project lies roughly 2 kilometres from the Msinja exploration licence, presenting a strategic regional opportunity for asset integration and value enhancement.

In addition to graphite, NGX has been advancing exploration across regional licences in Malawi, acquiring rights to the Msinja and Lidzi licences to investigate known high-grade titanium mineralisation identified by previous operators. The proximity of these projects to Malingunde enables NGX to evaluate the economic viability of recovering rutile as a secondary product stream within a potential integrated operation, adding value to its broader regional development strategy.

Hand-Auger Drilling Reveals Multiple Shallow Rutile Intercepts at Msinja

NGX's exploration across Msinja and Lidzi licences produced notable rutile results at the Msinja Prospect. The company completed 61 hand-auger holes across both licences, including 19 at Msinja. This program aimed to test high-grade titanium mineralisation previously confirmed by Sovereign Metals Limited. Results from Msinja confirmed shallow, high-grade rutile mineralisation starting at or near surface across multiple drill sites.

Three Msinja drill holes showed particularly strong results: Hole MHA0015 intersected 6 metres at 0.65% rutile from surface, including 2 metres grading 1.00% rutile; Hole MHA0013 returned 7 metres at 0.91% rutile from surface with an internal 2-metre zone at 0.97% rutile; Hole MHA0019 intersected 7 metres at 0.77% rutile from surface, including 3 metres at 0.89% rutile. Overall, 16 of 19 auger holes at Msinja intersected mineralisation from surface, with most intercepts remaining open at depth, indicating potential for deeper rutile mineralisation beyond current drilling.

Lidzi Licence Shows Limited Rutile Mineralisation

The exploration program also targeted the Lidzi licence with 42 auger holes drilled. However, results there showed limited mineralisation, falling short of NGX's expectations for rutile grades and widths. Specific intercept details were not disclosed, suggesting mineralisation did not meet significant reporting thresholds. This contrasts with the consistent, widespread rutile mineralisation at Msinja, highlighting variability across the regional portfolio.

Despite weaker results at Lidzi, NGX plans to evaluate strategic options to maximise shareholder value from this licence. The company's focus is now shifting toward the more promising Msinja deposit, where shallow, high-grade rutile intercepts support further assessment and potential integration with the Malingunde operation.

Strategic Advantage: Potential Integration of Msinja Rutile with Malingunde Graphite

The close proximity of Msinja's rutile mineralisation to NGX's flagship Malingunde Graphite Project offers a strategic benefit. Situated less than 2 kilometres apart, Msinja could be incorporated into an integrated mining and processing operation. Ongoing technical work at Malingunde aims to develop a low-cost production pathway centred on high-grade, low-impurity graphite concentrate. The nearby rutile mineralisation presents an opportunity to evaluate recovery as a secondary by-product stream, potentially improving project economics.

Any integration decision depends on further technical studies, including additional drilling to define rutile resources, metallurgical testing for recovery characteristics, and economic assessments of combined development scenarios. NGX clarified that current exploration results do not imply production targets or economic forecasts, underscoring that significant work remains before integration becomes a committed plan. Nonetheless, the discovery provides valuable optionality amid a soft natural graphite market cycle.

Executive Insights on Market Conditions and Portfolio Strength

Executive Director Peter Fox described the Msinja rutile discovery as "highly encouraging," offering NGX "valuable strategic optionality." He emphasized the company's continued bullish stance on the long-term fundamentals of natural graphite within the energy transition, noting that the positive rutile results amid a softer market cycle highlight the quality of NGX's broader exploration portfolio. This reflects the view of rutile as a strategic asset enhancing NGX's risk-adjusted value during weaker graphite market sentiment.

Fox's commentary underscores confidence in the energy transition-driven demand for natural graphite while highlighting the portfolio's capacity to deliver significant discoveries during challenging market cycles. This dual-commodity optionality—graphite as the core focus and rutile as an emerging by-product—positions NGX to manage commodity price volatility and market shifts. The approach acknowledges cyclicality while maintaining conviction in the long-term value of both graphite and titanium minerals within the energy transition framework.

Competent Person Statement and Quality Assurance

Exploration results were compiled and verified by Sam Moyle, NGX Limited's Exploration Manager and member of The Australasian Institute of Mining and Metallurgy (AusIMM). Moyle holds ordinary shares and unlisted options in NGX, indicating a direct financial interest. As a qualified Competent Person under the 2012 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, Moyle possesses relevant experience for the mineralisation style, deposit type, and exploration activities.

The Competent Person Statement assures investors that the reported exploration results are prepared by a qualified professional with appropriate expertise. Moyle’s consent to include his information and support the technical assessment adds credibility and accountability, aligning with industry standards for exploration-stage reporting and supporting the reliability of disclosed mineral intercept data.

Exploration Program Background and Previous Operator Context

NGX’s hand-auger drilling program builds on prior exploration by Sovereign Metals Limited (ASX:SVM), the former operator of these regional licences. Sovereign Metals confirmed high-grade titanium mineralisation at these sites in 2019, as detailed in their update "High-Grade, Broad & Widespread Rutile Potential Demonstrated in Malawi." NGX’s current drilling demonstrates its commitment to advancing early-stage exploration and testing the rutile potential identified by Sovereign Metals.

Hand-auger drilling is a cost-effective method for shallow mineral testing and spatial definition. Drilling 61 holes across both licences ensured systematic coverage. With 16 of 19 holes at Msinja intersecting mineralisation from surface, the results indicate a broad mineralisation footprint, suggesting ore access may require minimal waste stripping if mining proceeds. Consistent results across multiple holes support the interpretation that rutile mineralisation is widespread at Msinja rather than isolated.

Next Steps and Forward Development Plans for Msinja

NGX plans to evaluate the hand-auger results to guide future exploration at Msinja, focusing on integrating the rutile deposit with the Malingunde Graphite Project. Near-term goals include further drilling to better define rutile extent and grade, metallurgical testwork to assess recovery and processing compatibility with graphite concentrate production, and economic evaluation of integration scenarios.

The company reiterated that no production targets or economic forecasts are implied by current results, reflecting the early evaluation stage. Upcoming milestones may involve infill auger or shallow rotary drilling to extend rutile mineralisation depth and collect bulk samples for metallurgical testing. Resource estimation is anticipated later, though timelines have not been disclosed. Investors should monitor future announcements on exploration schedules and metallurgical outcomes.

Market Context: Natural Graphite Demand and Energy Transition Outlook

NGX’s focus on natural graphite aligns with strong long-term demand driven by energy transition trends, including lithium-ion battery manufacturing and electric vehicle growth. High-grade, low-impurity natural graphite is strategically important for battery anodes in many developed economies. The company’s bullish outlook on graphite fundamentals within the energy transition matches industry consensus on structural demand growth for battery-grade graphite over the medium to long term.

The adjacent rutile discovery at Msinja adds a secondary commodity dimension to NGX’s Malawi portfolio. Rutile, the primary titanium ore mineral, has diverse industrial uses such as pigment production, welding electrodes, and advanced ceramics. Economically recovering rutile as a by-product of Malingunde graphite mining could improve project cash flow and economics, especially during softer graphite market periods. Accessing multiple commodities from a single operation is a recognized value-creation strategy, particularly in regions with capital and infrastructure constraints.