Nimy Resources discovers extensive high-grade intersections of little-known critical metal gallium

Junior explorer Nimy Resources has made an unusual discovery at its Mons project north-west of Southern Cross — extensive high-grade intersections of the “emerging” critical metal gallium.

Nimy told the Australian Securities Exchange on Wednesday that three reverse circulation drill holes at Block 3 East all returned high-grade gallium with substantial intervals greater than 100 parts per million gallium oxide.

The company explained gallium was a little-known emerging critical metal with an expanding range of uses, yet there appeared to be only a handful of explorers reporting gallium results.

“Gallium is widely used in aerospace and defence applications, high-performance computers, high-tech industrial equipment, telecommunications, and consumer products such as high-speed cellular telephones and other high-speed wireless devices,” the company said.

Nimy said gallium was on Australia’s critical metals list, as well as those of the US, UK, European Union, India, Japan, and South Korea.

But like rare earths in general, China was the dominant source, with about 98 per cent of the world’s production.

“China introduced sanctions in August 2023, citing protection of its national security and interests,” Nimy said.

“Consequently, Chinese gallium exports plunged from 28,000kg in the first half of 2023 to 16,000kg in the second half.”

Nimy said demand for gallium was set to increase steadily in the short to medium-term.

“It is also possible that gallium demand may increase above the projected levels given a reliable supply and its increased efficiency and durability over the silicon alternative,” the company said.

Nimy explained gallium handled higher amounts of power than silicon, meaning gallium nitride-based chips could be more efficient and durable than their silicon counterparts.

Gallium nitride was also used in the manufacture of LEDs, magnets, integrated circuits and solar panels.

“Gallium is mainly produced from bauxite, zinc sulphide ores and coal as a low level (about 10ppm) bi-product and outside of China there is very little production data available,” Nimy said.

“The gallium oxide price per kg has risen significantly in the last year.

“Australia produces 14 of the 31 critical minerals essential for modern technologies and renewable energy, (and) gallium is to be added to this suite, ensuring considerable upside given the criticality of supply risks currently unfolding.

“The holes drilled at Block 3 East have revealed consistently high grade (at greater than 100ppm gallium oxide) and extensive gallium levels that Nimy consider to be outstanding.”

Nimy executive director Luke Hampson said the high-grade gallium trend at Mons continued along and across strike for 160m of the original high-grade intersections and repeated about 220m to the west, with further intervals in this drill campaign above 100ppm gallium oxide.

“Given the high-grade large intervals of gallium, Nimy has begun to identify the standalone commercial value of gallium along with its role as a base metal pathfinder element,” he said.