Nov 14, 2024

WA1 Resources Hits 75.0m @ 1.9% Nb2O5 at Luni Deposit, West Arunta Project, Western Australia

Introduction:

WA1 Resources Ltd (ASX: WA1) (Market Cap: $914M | Last Close: $13.35 | Cash: $94.5M ) has reported significant niobium intercepts from resource definition drilling at its Luni deposit within the West Arunta Project in Western Australia, highlighted by 75.0m at 1.9% Nb2O5 from 30.0m. The results are from the north-eastern zone of Luni and will support an updated Mineral Resource estimate targeted for the first half of 2025.

Drill Results:

75.0m @ 1.9% Nb2O5 from 30.0m (including 53.1m @ 2.2% Nb2O5 from 31.9m) [LUDD-0098]
78m @ 2.0% Nb2O5 from 40m (including 58m @ 2.4% Nb2O5 from 43m) [LURC-0009]
40.0m @ 3.3% Nb2O5 from 65.0m (including 21.0m @ 4.2% Nb2O5 from 77.0m) [LUSD-0007]
34.0m @ 1.5% Nb2O5 from 39.0m [LUDD-0067]
25m @ 4.4% Nb2O5 from 34m [LUAC-0004]
24.3m @ 3.1% Nb2O5 from 46.7m [LUDD-0068]‍
21m @ 3.1% Nb2O5 from 35m [LURC-0018]

Project Overview:

The West Arunta Project is 100% owned by WA1 Resources and located in Western Australia. The Luni deposit represents a significant niobium discovery in an underexplored region of the state. The project benefits from its location in a stable mining jurisdiction with established infrastructure networks.

While the current focus is on the weathered zone of the Luni carbonatite, there is considered to be significant potential for primary mineralization in the deeper, unweathered zones. The deposit remains open at depth and along strike, with ongoing drilling aimed at expanding the resource footprint.

Program Details:

The current drilling campaign at Luni is extensive, with approximately 180 drillholes totalling over 18,000m completed year-to-date. This release includes results from 23 holes, comprising air core, diamond, reverse circulation, and sonic drilling methods. The drilling is focused on resource definition in the north-eastern zone of Luni, with hole spacing generally between 50m to 100m. The orientation of enriched, oxide mineralization is interpreted to be sub-horizontal and coincident with the flat-lying transition between intensely and moderately weathered carbonatite.

Understanding These Results:

The reported intersections demonstrate continuity of shallow, high-grade niobium mineralization across the north-eastern area of Luni. The wide intercepts of consistent grade, such as 75.0m @ 1.9% Nb2O5 and 78m @ 2.0% Nb2O5, indicate substantial thickness of the mineralized zone. Higher-grade intervals within these broader zones, like 21.0m @ 4.2% Nb2O5, are of particular note.

These results are particularly significant as they come from an area planned to support early development ambitions at Luni. The consistent nature of mineralization and presence of high-grade zones bode well for potential project development scenarios.

Management Commentary:

Paul Savich, WA1's Managing Director, stated:

“These latest assay results from the north-east zone of the deposit further demonstrate the significance of one of the key high-grade areas at Luni. This zone is currently planned to support our early development ambitions and will be an important part of the updated Mineral Resource estimate targeted for the first half of 2025.”

“Once the requisite drilling is completed to inform a Mineral Resource estimate update, sitebased activities will pause with equipment and infrastructure remaining on site to allow for an efficient restart in 2025. Planning is well-advanced for next year’s field activities which will continue to focus on the collection of data that is critical toward technically de-risking Luni and expediting the permitting process.”

Next Steps & Catalysts:

Drilling is ongoing at Luni to support an updated Mineral Resource estimate expected in the first half of 2025. There remains a significant backlog of samples from diamond, sonic and RC drilling, with results to be reported progressively.

Following completion of the required drilling, field activities will pause before recommencing in 2025. Key activities recently completed include detailed flora and fauna surveys, a program of monitoring bores, and downhole geophysical surveys. Metallurgical testwork programs are ongoing with results expected over coming months.

Commodity Outlook:

Niobium is a critical metal with growing demand in the steel and technology sectors. Its use in high-strength, low-alloy steels and superalloys makes it crucial for infrastructure, automotive, and aerospace applications. The discovery of a significant niobium deposit in Western Australia could be strategically important for diversifying global supply, currently dominated by Brazilian production.

Conclusion:

The latest results from Luni continue to demonstrate the potential for a significant niobium resource in Western Australia. With consistent high-grade intercepts and substantial widths, the deposit is shaping up as a potentially world-class asset. As WA1 Resources progresses towards an updated Mineral Resource estimate in 2025, ongoing drilling and technical studies will be crucial in defining the full potential of the Luni deposit and its economic value.

Sources:

WA1 Drill Result Announcement

Additional Figures:

Australia

ASX

Copper

Nov 4, 2024