RareX Unearths High-Grade Gallium Treasure at Cummins Range
RareX Limited (ASX: REE) has confirmed exceptional gallium values at its Cummins Range project, positioning the company at the forefront of Western gallium production potential amid growing global supply concerns and surging demand.
Gallium Discovery Confirms Strategic Resource Potential
Initial re-assay results from the first 15 drill holes at Cummins Range have validated the company's April discovery, confirming wide, high-grade gallium mineralisation occurring alongside rare earths, phosphate, and scandium.
Standout intercepts include:
- 60m at 99 g/t Ga₂O₃ from 29m, including 33m at 115 g/t Ga₂O₃
- 50m at 68 g/t Ga₂O₃ from 47m, including 5m at 113 g/t Ga₂O₃
- 27m at 75 g/t Ga₂O₃ from 28m, including 3m at 108 g/t Ga₂O₃
Previous historical drilling had revealed values up to an impressive 6,826 g/t Ga₂O₃, highlighting the exceptional potential of the deposit.
"This latest round of assays confirms what our early analysis suggested; the gallium at Cummins Range is not only real, but significant. With consistent grades now returned from infill drilling, we can probably say Cummins Range is one of Australia's most advanced and highest-grade gallium projects." – James Durrant, CEO and Managing Director
Understanding Gallium: The Critical Technology Metal
Gallium is classified as a critical mineral by the US, EU, and Australia due to its essential role in modern technology. Industry standards classify gallium grades as low (30-50 g/t), moderate (50-100 g/t), and high (>100 g/t).
The Cummins Range results reveal a moderate-grade area spanning 500m x 500m, with significant higher-grade zones coinciding with rare earth and scandium enrichment. This multi-element enrichment creates a unique value proposition for the project.
Key Applications of Gallium
Gallium has become increasingly vital across multiple high-technology sectors:
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Semiconductor Manufacturing: Gallium arsenide (GaAs) and gallium nitride (GaN) compounds are essential for integrated circuits, particularly for advanced computing applications including AI chips. GaN offers superior power density and heat resistance compared to traditional silicon-based solutions.
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Optoelectronic Devices: Approximately 25% of gallium consumption goes toward components such as laser diodes, light-emitting diodes (LEDs), photodetectors, and solar cells. These applications are crucial for fiber optic communications and high-speed data transmission technologies.
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Renewable Energy: Gallium compounds are used in thin-film solar panels to achieve higher efficiency. The scale of potential demand is substantial—Austria's planned renewable energy projects alone would require approximately 4.5 times the current global gallium production.
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Defense Technology: Gallium-based semiconductors are critical components in military-grade electronics and systems, offering performance advantages in extreme environments.
China's Dominance Creates Strategic Opportunity
The global gallium market presents a compelling opportunity for RareX as Western nations seek supply alternatives. Currently, China controls 98% of global gallium production, with Russia as the distant second producer at just 0.81% of world output.
China's strategic export restrictions, implemented in August 2023 and intensified in December 2024, have dramatically disrupted global supply chains and pushed prices to their highest levels since 2011. With gallium prices reaching $575 per kilogram in December 2024, the market shows strong upward pressure.
The gallium market is projected to grow from $2.45 billion in 2024 to $21.53 billion by 2034, driven by expanding applications across semiconductor, telecommunications, defense, and renewable energy sectors.
Supply Constraints and Market Dynamics
China's production advantage stems primarily from its integration of gallium recovery with its massive aluminium industry, as gallium is typically extracted from the alumina processing stream. This integration has allowed China to maintain its dominance in global supply.
The recent export restrictions have significantly impacted Western access to this critical material:
- Initial controls in August 2023 immediately disrupted global supply chains
- Further restrictions in December 2024 included a comprehensive ban on gallium exports to the United States
- These measures have intensified market pressures and highlighted the vulnerability of Western supply chains
Cummins Range: Multi-Element Critical Minerals Hub
Cummins Range already hosts a substantial resource of 524Mt at 0.31% TREO, 4.6% P₂O₅ and 70 g/t Sc₂O₃, including a higher-grade component of 44Mt at 1% TREO. The addition of gallium to this resource base enhances the project's strategic value.
The gallium mineralisation occurs within the weathered saprolite zone of the Cummins Range carbonatite pipe, coinciding with areas of rare earth, phosphate, and scandium enrichment. This multi-element nature creates potential for optimised extraction and recovery.
Geological Setting
The Cummins Range REO deposit occurs within a 2.0 km diameter near-vertical diatreme pipe that has been deeply weathered but essentially outcropping with only thin aeolian sand cover in places. The primary ultramafic and carbonatite rocks host rare-earth elements with background levels of 1000-2000 ppm TREO and high-grade zones up to 20% TREO.
The regolith profile extends to 100m below the surface, where a combination of residual, or eluvial and chemical weathering have redistributed and upgraded rare earths, gallium, scandium and phosphate. This weathering process has concentrated these valuable elements in specific zones throughout the deposit.
"What makes this particularly strategic is that the gallium sits within a broader rare earth-phosphate-scandium system, making Cummins Range one of the most geopolitically relevant critical mineral deposits in the country." – James Durrant, CEO and Managing Director
Next Steps and Development Timeline
RareX is advancing the gallium opportunity through multiple workstreams:
- Continuing the re-assay program across the remaining drill holes from the initial 58-hole program
- Investigating mineralogical characteristics to understand gallium occurrence and optimal recovery methods
- Working with strategic partner Gega Elements to assess novel refining technology for low-cost gallium extraction
- Integrating gallium into the broader Cummins Range project development plan
With 30,000 metres of drilling at Cummins Range that has not been assayed for gallium, there may be potential for a fresh rock resource beyond the current weathered zone mineralisation.
Why Investors Should Watch RareX
RareX presents a compelling investment case for several key reasons:
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Strategic Critical Minerals Portfolio: With rare earths, phosphate, scandium, and now gallium, Cummins Range offers exposure to multiple high-demand critical minerals in a single project.
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Western Supply Alternative: As China restricts critical mineral exports and prices rise, RareX is positioned to become a significant non-Chinese supplier.
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Advanced Project Status: Cummins Range is progressing toward development with a defined resource and ongoing optimisation work.
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Market Growth Exposure: The gallium market's projected growth from $2.45B to $21.53B by 2034 provides substantial upside potential.
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Multi-Element Value Proposition: The coincidence of gallium with rare earths, phosphate, and scandium creates potential for enhanced project economics through multi-element recovery.
Gallium Market Fundamentals
The long-term outlook for gallium appears robust as demand continues to expand across multiple sectors:
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Semiconductor Growth: The semiconductor industry represents the largest demand driver for gallium, with approximately 74% of gallium imported into the United States during 2023 being used in integrated circuits.
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Optoelectronic Expansion: The rapid growth in popularity of electronic devices including mobile phones, laptops, televisions, and lighting applications continues to drive demand in this segment.
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Renewable Energy Surge: Europe alone is projected to consume up to 26 times more gallium by 2030 compared to current levels, according to the Fraunhofer Institute.
As Western nations increasingly prioritise secure supply chains for critical minerals, Cummins Range's potential as a non-Chinese source of gallium, alongside its rare earths, phosphate, and scandium content, positions RareX at the intersection of multiple strategic mineral trends.
Could Gallium Be Your Next Investment Frontier?
Discover how RareX is positioning itself as a key Western supplier of gallium alongside rare earths, phosphate, and scandium at its advanced Cummins Range project. With China controlling 98% of global gallium production and implementing export restrictions, RareX's high-grade gallium discovery represents a significant strategic opportunity in a market projected to grow from $2.45 billion to $21.53 billion by 2034. To learn more about this compelling investment opportunity and access the complete announcement, visit RareX's website.
