Typically produced as a by-product of alumina and zinc refining, Block 3’s high grades and mineralogical characteristics mean it could shape up as a rare primary source of the metal, known for its performance-enhancing properties in semiconductor chips, solar panels, EV and wind turbine motor magnets, LCDs and more.
The metal’s supply chain is also ~98% controlled by China, placing strategic importance on discoveries outside of the Middle Kingdom.
Nimy Resources (ASX:NIM) said the funds raised from this placement will advance the Block 3 gallium discovery by accelerating the current and next round of drilling, progressing towards a maiden resource estimate, along with offtake discussions, and supporting metallurgical test work.
Phase 2 drilling at Block 3 is well advanced and the first samples have been sent for assay.
Gallium prices have surged to $1,012/kg, driven by China’s export ban that has
squeezed global semiconductor supply chains, making Block 3’s exploration target of 9.6-14.3Mt at 39-78ppm gallium even more enticing.
Plus, the company already has a partnership with M2i Global in the back pocket, a group which could facilitate potential sales to the US Department of Defense should the project prove economic.
“We are very pleased with the positive market response received. Nimy is focused on delivering a JORC compliant gallium resource to underpin the development of our high grade gallium discovery at Block 3,” Nimy managing director Luke Hampson said. “Nimy is positioning to be a major player supplying high grade gallium into high growth markets as the US and the EU seek security of supply into gallium reliant industries such as semiconductor manufacture and defence force applications”.
