Australasian Metals (ASX:A8G) reports promising gallium levels at May Queen South Bauxite Project

Highlights

• Re-evaluation of historical metallurgical tests suggest a hydrometallurgical treatment route for the Monogriliby bauxite ore using citric acid or hydrochloric acid as primary agent.
• Substantial elevated levels of gallium (Ga) and germanium (Ge) have been identified at the May South Queen Bauxite resource.
• Recent tests confirmed an average gallium content of 67.59g/t across 12 samples, with a peak of 145.5g/t Ga.

Australasian Metals Limited (ASX:A8G) has reported promising developments at its May Queen South Bauxite Project. A re-evaluation of historical metallurgical tests (completed in 2015) has revealed the potential for a hydrometallurgical treatment route for the Monogriliby bauxite ore by using hydrochloric acid or citric acid as the primary reagent. Additional test work is needed to determine recovery rates, reagent consumption, and the purity of extracted materials including aluminium, titanium and iron.

Elevated levels of gallium and germanium confirmed

Previously, the company identified significantly elevated gallium (Ga) and germanium (Ge) levels in the project area.

A 2016 metallurgical report had identified Ga content of 64.4 mg/kg (64.4g/t) in the "Iron Ridge Head" sample. Building on this along with the recent surge in the Ga prices, the company re-assayed samples by employing the ALS ME-MS85 method. The analysis confirmed an average gallium content of 67.59g/t over 12 randomly selected samples, with a peak value of 145.5g/t Ga. The results highlight the significant potential for the project resource upgrade, including credits for Ge and Ga.

Preliminary Metallurgical Testwork and Next Steps

Initial metallurgical testwork was conducted at Core Resources’ laboratory in Brisbane, Australia, using a bulk sample of 25 to 50 kg. The testing involved size reduction, scrubbing, and sizing to evaluate the potential for producing a 'premium quality' DSO product through simple crushing, scrubbing, and screening processes.

Based on these preliminary results, the company plans to undertake further testing using a more representative sample to validate the initial results with greater confidence. This next phase will also explore process optimisation options and assess the potential for TiO₂ recovery from a ‘reject’ stream.

Assessing Ga and Ge content in existing MRE

Data source: Company update

The company is in the process of accessing sample pulps from the resource drilling that may have been archived by the previous owner, Atlantic Lithium Limited. If the samples are in good condition, A8G intends to re-analyse them to estimate the Ga and Ge content within the existing MRE. However, additional drilling may be required to accurately determine the Ga and Ge levels.

Furthermore, the company is reaching out to its potential customers and partners by leveraging its network in the downstream processing and product offtake space in Asia.

Surging Gallium Prices

Gallium prices have surged significantly in recent years on the back of growing demand from the semiconductor and electronics industries. This critical element is essential for manufacturing compound semiconductor wafers used in devices such as laser diodes, LEDs, photodetectors, and solar cells. Gallium's low melting point and ability to form advanced compounds make it indispensable in high-tech applications. 

The global gallium market is dominated by China, which produces nearly 98% of the world’s supply. Market disruptions including price-inelastic demand and Chinese export controls implemented in August 2023, have led to a sharp price increase. Gallium's price has more than doubled, increasing from $422.70 per kg in 2021 to over $900 per kg in 2024.

A8G shares were trading 1.25% higher at AU$0.081 per share at the time of writing on 3 December 2024.