Anson Resources targets critical minerals including gallium and barium at Ajana's Mary Springs deposit
Last updated: 10:35 16 Jul 2024 AEST, First published: 10:31 16 Jul 2024 AEST
Anson Resources Ltd (ASX:ASN, OTCQB:ANSNF) is investigating the critical minerals potential of the Mary Springs deposit of the Ajana Project in Western Australia after discovering gallium, barium, indium and germanium on the tenure, which was previously considered to be prospective for only lead.
A review of a mine plan and database developed in 2009 for the extraction of lead at Mary Springs highlighted assays that contained not only lead mineralisation but also gallium and barium as well as other critical and base metal mineralisation.
The additional minerals were not included in the JORC-compliant mineral resource estimate (MRE) for the project but metallurgical testing has demonstrated the presence of galena (lead-silver) and sphalerite (zinc sulphides) mineralisation as well as up to 36 parts per million gallium.
Multi-element potential
The Ajana Project is a 200.5-square-kilometre tenure in the Mid-West region of Western Australia. While the project was first investigated for mining potential in the 1970s, it remains underexplored.
Anson believes gallium mineralisation is contained in the lead resource at Mary Springs and could be mined simultaneously.
The company has already developed a full pit design with wireframes for exploiting the lead resource at Mary Springs and will now re-assay core samples for all critical minerals including indium and germanium.
Apart from the high-value critical and battery metals Anson is investigating, the company is also interested in the newly discovered precious and base metal potential.
Future exploration at Mary Springs will focus on strike extensions of high-grade mineralisation thought to contain zinc, lead, silver, gallium, indium, germanium and barium.
A previously completed versatile time domain electromagnetic (VTEM) survey identified eight drill targets at Mary Springs, with three anomalies striking in parallel with the dolerite dykes in the same manner as the Mary Springs lead deposit – Anson says these anomalies will be considered for further exploration at a later date.
The company is conducting metallurgical test work to identify the most economically efficient method to extract the lead-zinc-silver mineralisation as well as the critical minerals.
ASN will undertake petrological studies of the ore and surrounding rock units in parallel with test work to determine the relationship between sulphide and gallium mineralisation, as well as the concentration of critical minerals within the lead and zinc mineralisation.
Minerals in high demand
Anson Resources is particularly interested in the critical minerals potential at Mary Springs due to recent shifts in mineral supply chains.
China produces 98% of the world's gallium and 92% of its germanium. In August last year, China cancelled all exports of the critical minerals, highlighting the need for a secure supply that will not be as strongly impacted by shifting geopolitics.
ASN believes US and European semiconductor chip manufacturers will actively seek to establish long-term supply contracts with future gallium suppliers outside of China, in stable jurisdictions with strong trade ties, making Australia an attractive option.
Gallium is used in semiconductors, LEDs, mobile phones and nuclear engineering. It has non-toxic properties with resistance to both neutron and beta decay from radiation.
After China banned its export, the price of gallium increased 7% in the year to date, with demand expected to increase further due to its applications in 5G networks, computer chips, wireless charging units and for future-facing technology like electric vehicles and solar and grid power systems.
Indium is commonly recovered from sphalerite mineralisation and is widely used in aerospace, defence, energy and telecommunications sectors – it’s used in flatscreens, film coatings, night vision equipment aerospace alloys and solar cells.
Germanium has applications in fibre optics, infra-red optics, high-brightness LEDs, semi-conductors, night vision and night targeting, and solar panels as the most efficient energy generator.
Barium alloyed with titanium is a ferroelectric material used in the production of capacitors and electronic components while barium sulphate is used as a contrast agent in medical imaging like x-rays and CT scans.
Both the critical and base metals at Ajana offer attractive price points at present:
Zinc - US$2,943 per tonne (London Metal Exchange, July 12, 2024).
Lead - US$2,210 per tonne (LME, July 12, 2024).
Siver - US$30.80 per ounce (***** Strategic Metals, July 14, 2024).
Gallium - US$ 869 per kilogram (***** Strategic Metals, July 10, 2024).
Indium - US$ 6659 per kilogram (***** Strategic Metals, July 10, 2024).
Germanium - US$ 3,179 per kilogram (***** Strategic Metals, July 10, 2024).
ASN Price at posting:
14.3¢ Sentiment: Buy Disclosure: Held
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