Gallium Mineralisation Discovered in Rock Chip Samples from the May Queen South Bauxite Project, Queensland

Australasian Metals Limited (ASX: A8G, Australasian or the Company) is pleased to advise that a re-evaluation of data from the Company’s May Queen South Bauxite project has recognised significantly elevated levels of gallium (Ga) (see Table 1).

Highlights

• Significant levels of the semiconductor elements gallium (Ga) and germanium (Ge) identified within the May Queen South Bauxite resource.
• Significant elevated gallium results returned averaging 67.59 g/t Ga over 12 random samples with an assay high of 145.5 g/t Ga.
• The May Queen South Bauxite Project (EL 16260 and EPM 16261) has a JORC (2012) Inferred Mineral Resource Estimate of 54.9Mt at 37.5% total Al₂O₃ and 5.2% TiO₂ and 7.9% Rx SiO₂.
• The project is located <55km from existing rail infrastructure with connections to the Port of Bundaberg.

Market summary

Gallium prices have surged in recent years, primarily due to increased demand in the electronics and semiconductor industries (Graph 1). Uses of Ga include the manufacture of compound semiconductor wafers that are used in integrated circuits and optoelectronic devices including laser diodes, light-emitting diodes (LEDs), photodetectors, and solar cells. Gallium's unique properties, such as its low melting point and ability to form useful compounds, makes it a critical element with applications spanning various industries, particularly in advanced technology and electronics.

The global gallium market is heavily dominated by China, with other countries playing much smaller roles. Currently China produces approximately 98% of the world's supply of raw gallium¹.

Recent market disruptions including the entry of price inelastic demand ² and Chinese export controls in August 2023 has seen a doubling of prices since 2021 when gallium was priced at $422.70 per kg, the current price represents a 115.12% increase³

Graph 1. Gallium price worldwide from January 2018 to January 2024 (Source: www.statista.com)

May Queen South Bauxite project

The May Queen South Bauxite project is located in central Queensland, within a short trucking distance of a rail system leading north to the Port of Bundaberg. It is also located within close proximity of the main Queensland Rail network heading south towards the Port of Brisbane.

Figure 1. Location of EPM 16260 and EPM 16261 shown together with theCompany’s adjacent May Queen gold tenements (EPM19419 and EPM27746)

The Project has a JORC 2012 Inferred Mineral Resource estimate of 54.9Mt at 37.5% total Al₂O₃ and 5.2% TiO₂ and 7.9% Rx SiO₂⁴ (refer to announcement dated 30 May 2023).

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