Lightning Minerals advances Warby tungsten targets - ICYMI

Lightning Minerals Ltd (ASX:L1M, FRA:YZ1) earlier this week completed phase two exploration at its wholly owned Warby Tungsten Project in North Queensland, advancing the project toward the selection of potential initial drill targets.

Managing Director Troy Brice said the program had collected approximately 90 samples across priority areas and had been completed ahead of schedule and under budget, with no HSE incidents.

Brice said Warby continued to exceed the company’s expectations based on field observations, geological mapping and the results of its exploration work to date. He added that the latest program had advanced Lightning Minerals’ understanding of the project beyond the initial reconnaissance completed during phase one.

The company has now identified nine mineralised veins within a structural corridor covering approximately two square kilometres. Additional rock-chip and stream-sediment samples are expected to help define the possible extent of the tungsten system and refine the geological model.

Assay results, expected around mid-August, represent the next major catalyst. Brice said the company would assess the grades returned, the percentage of wolframite identified and the location of mineralised clusters.

Lightning Minerals is also considering geophysical work to increase confidence in its drill targeting before moving into a phase three program. Brice said: “We want to make sure every hole is a good hole, not a dry hole, and we’re going to use our capital wisely and sparingly.”

Subject to the results, drilling could begin toward the end of the year or early the following year.

Brice also highlighted Warby’s strategic location near the operating Mount Carbine tungsten mine. He said increasing demand from aerospace and defence technologies, combined with constraints affecting global tungsten supply, supported the company’s decision to give the project greater priority.

He noted that Australia has limited domestic tungsten production and said a successful discovery at Warby could potentially contribute to the country’s supply of the critical mineral.

Beyond Warby, Lightning Minerals is preparing to commence phase two drilling at Mount Turner, where the company is targeting gold mineralisation. Brice said this remained the company’s immediate operational focus.

Investors can therefore expect several near-term catalysts, including the Warby assay results, a detailed technical update after mid-August, the possible definition of phase three drill targets and the commencement of drilling at Mount Turner.

Interview highlights

• Lightning Minerals completed phase two exploration at the wholly owned Warby Tungsten Project ahead of schedule and under budget, with no reported HSE incidents.
• Around 90 samples were collected across priority targets in North Queensland.
• The company has identified nine mineralised veins within a structural corridor covering approximately two square kilometres.
• Rock-chip and stream-sediment sampling will be used to assess the potential extent of the tungsten mineralisation.
• Assay results are expected around mid-August and will help determine grades, mineralisation clusters and possible drill targets.
• Lightning Minerals is considering geophysical work to improve drill-target confidence before committing capital.
• A phase three drilling program could begin toward the end of the year or early the following year.
• Warby’s proximity to the operating Mount Carbine mine supports the project’s strategic position within an established tungsten region.
• Brice highlighted growing demand from aerospace and defence applications, together with concerns over the security of global tungsten supply.
• The assay results and a subsequent technical announcement represent the next key catalysts for Warby.
• Lightning Minerals is also preparing to commence phase two drilling at Mount Turner, targeting gold mineralisation.
• Warby was the fourth exploration program completed by the company in recent months, with further North Queensland programs planned.

Proactive: Lightning Minerals has completed phase two exploration at its wholly owned Warby Tungsten Project in North Queensland, collecting about 90 samples across priority targets as it moves closer to selecting initial drill sites. Here to discuss the program is Managing Director Troy Brice. Troy, good to see you.

Troy Brice: Thank you, Jonathan.

Proactive: Talk us through this program and what it reveals about the scale and geological controls of the tungsten mineralisation at Warby.

Troy Brice: Warby Tungsten continues to exceed our expectations based on our observations, findings, geological mapping and other work. It really is quite prospective.

The team only wrapped up the program yesterday. It was completed ahead of schedule and under budget, with no HSE incidents, which I am very pleased about. The team also had a good time working from a remote camp to complete the program.

What we have found goes beyond the initial reconnaissance work completed during our phase one program only a few months ago. We have expedited the project given current market conditions and recent investment activity involving our neighbour to the north.

It is important for us to prioritise Warby as a critical minerals project within our portfolio. While Lightning Minerals is primarily focused on gold, tungsten represents an immediate opportunity for the company.

This program takes us to a more advanced level of understanding of the geological model. Assay results are due around mid-August. Those results will help us build a profile of the project, establish potential drill targets for a phase three program and plan the next detailed stage of exploration.

Proactive: What gives you confidence that Warby could host a significant tungsten system? Give us an understanding of what you are looking at.

Troy Brice: It is the extent of the mineralisation we are observing across nine identified veins so far. We have targeted a structural corridor of approximately two square kilometres, and the results are continuing to be encouraging beyond that area.

The additional rock-chip sampling and stream-sediment sampling will help us determine the potential extent of the mineralised body and take the project into the next phase of exploration.

Proactive: Assay results are expected in August. What are you looking for in those results that would move the project directly into phase three?

Troy Brice: It is potentially all about grade: what percentage of wolframite is returned in those samples and where the clusters occur.

The team is also discussing the potential value of conducting geophysical work, such as induced polarisation or a similar method, to improve the probability of identifying drill targets.

We want to make sure every hole is a good hole, not a dry hole, and we are going to use our capital wisely and sparingly. Drilling may take place toward the end of this year or very early next year, when drilling restarts in North Queensland.

Proactive: Warby is located near the operating Mount Carbine mine and within a growing Western push to secure tungsten supplies. Talk us through that location and why it is important.

Troy Brice: Demand is being pushed higher by aerospace and defence technologies, while China, as the major supplier of tungsten to the market, continues to apply supply constraints.

That supports giving Warby due attention now, rather than focusing only on gold and copper opportunities in the region.

There is a strong operation at Mount Carbine, which has doubled its production capacity. The only other producer in Australia is on King Island, around 4,000 kilometres to the south.

For Lightning Minerals to potentially emerge with a decent mineralised body that could contribute to Australian supply of this critical mineral would be significant. Timing is important in our market, but the project’s probability, our capability and its geographic location also support a strong model for the company.

Proactive: Assay results are still to come, but what else can investors expect over the next month or so?

Troy Brice: The assays are the next catalyst. We expect to provide a detailed technical announcement shortly after mid-August.

The next update from Lightning Minerals is expected to cover the commencement of phase two drilling at Mount Turner, where the company will pursue its gold target. That is our main focus right now.

We also have several other programs lined up. We are moving quickly during the North Queensland exploration season. Warby is our fourth successfully completed program in the past few months, and the next programs are ready to begin.

Proactive: Plenty to look forward to. Troy, thanks for your time this morning, and we will talk again shortly.

Troy Brice: Thanks, Jonathan.