Chilwa Minerals Delivers Major Resource Upgrade at Mposa with First Measured Resources
Chilwa Minerals Limited (ASX: CHW) has announced a significant upgrade to its Mposa deposit mineral resource estimate, marking a pivotal milestone in the development of its Critical Minerals Project in Southern Malawi. This Chilwa Minerals rare earth discovery represents a transformative moment for the company, with the updated estimate showcasing 83% of the deposit now classified as Measured resources, representing the highest confidence category under JORC guidelines.
The latest resource estimate reveals 25.65Mt of total Measured and Indicated resources, comprising 21.3Mt Measured and 4.3Mt Indicated. This represents a substantial increase from the previous 22.3Mt estimate completed in June 2025.
Perhaps most significantly, the company has identified monazite (rare earth element bearing), leucoxene, and garnet within the mineral assemblage for the first time at Mposa. This breakthrough adds considerable strategic value to the project portfolio.
High-Grade Core Emerges as Development Priority
The updated resource estimate has identified distinct zones within the Mposa deposit, with the Main NE zone delivering exceptional results. This high-grade core contains 11.26Mt at 5.61% THM (Total Heavy Minerals), significantly above the project average of 4.03% THM across all deposits.
Furthermore, the zone characteristics demonstrate superior metallurgical qualities. These include lower slimes content compared to project average, enhanced rutile, zircon, leucoxene and garnet grades, and 52% of total Measured Resources concentrated in this area.
| Metric | Main NE Zone | Project Average |
|---|---|---|
| THM Grade | 5.61% | 4.03% |
| Slimes % | 17.08% | 20.05% |
| Rutile % | 0.04% | 0.03% |
| Zircon % | 0.48% | 0.36% |
Development Optionality
The concentration of high-grade resources within the Main NE zone provides management with considerable flexibility in project development. "With 11.26Mt of Measured Resources at 5.61% THM, the Mposa Main NE sub-deposit stands out as a high-grade core of the deposit and provides Chilwa with increased optionality for staging, scheduling and early-phase development," stated Cadell Buss, Managing Director.
This strategic positioning enables the company to consider phased development approaches, potentially reducing initial capital requirements whilst maximising early cash flow generation.
What Makes This Rare Earth Discovery Significant?
For the first time, this Chilwa Minerals rare earth discovery has quantified monazite within its resource base, opening potential rare earth element (REE) revenue streams alongside traditional mineral sands products. Monazite proportions have been incorporated directly into the updated block model based on QEMSCAN analysis, establishing the foundation for evaluating REE by-product economics.
Monazite Distribution Across Domains:
- Main NE: 0.02% monazite content
- Main SW: 0.02% monazite content
- North Zone: 0.00% monazite content
In addition, the identification of leucoxene is equally significant, representing a premium ilmenite alteration product positioned between rutile and ilmenite in value ranking. The Main NE zone contains up to 0.5% leucoxene, adding another high-value component to the product suite.
Metallurgical Validation
Recent metallurgical test work on a 4.2-tonne sample successfully created both garnet and monazite concentrates. This validates the technical feasibility of extracting these valuable by-products during processing, supporting the commercial viability of the rare earth element opportunity.
Understanding Mineral Sands: The Investment Opportunity
Mineral sands represent heavy minerals concentrated in ancient beach and dune deposits, typically containing valuable titanium minerals (ilmenite, rutile, leucoxene), zircon, and increasingly sought-after rare earth minerals like monazite. These deposits form when wave action and wind separate heavy minerals from lighter quartz sands over geological time periods.
Why This Matters for Investors:
- Titanium minerals feed the pigment industry (paint, plastics, paper) and aerospace applications
- Zircon serves ceramics, foundries, and nuclear industries
- Rare earth elements from monazite support clean energy and technology sectors
- Garnet provides industrial abrasive applications
The global mineral sands industry benefits from steady demand growth, particularly for titanium dioxide pigment and zircon in construction and technology applications. Unlike many exploration commodities, mineral sands serve established industrial markets with consistent demand patterns.
Consequently, this offers investors exposure to materials essential for both traditional manufacturing and emerging clean energy technologies.
Technical Excellence Drives Resource Confidence
The resource upgrade leverages high-density sonic drilling at 50m x 50m spacing in the central deposit area, tightening to 100m x 50m at the northern and southern extremities. This 773 drill holes totalling 4,787 metres provides exceptional geological confidence, enabling the classification of 83% of resources as Measured category.
Resource Classification Breakdown:
- Measured: 21.3Mt (83% of total)
- Indicated: 4.3Mt (17% of total)
- Total Heavy Mineral Concentrate: 1.06Mt (increased from 0.95Mt)
Superior Sample Recovery
The sonic drilling methodology delivers superior sample recovery compared to conventional techniques, with 96.91% average core recovery across the program. Combined with QEMSCAN analytical techniques and comprehensive QAQC protocols, this approach provides industry-leading resource confidence.
However, the true value lies in the geological understanding gained through this comprehensive drilling campaign. The high-density data points enable precise resource modelling and support the elevated confidence classification.
Strategic Position for Near-Term Development
The Chilwa Minerals rare earth discovery demonstrates clear advancement toward development readiness. The scoping study progressing for completion in Q1 2026 will incorporate these latest resource estimates, providing investors with economic parameters for the project.
Development Timeline Catalysts:
- Q1 2026: Scoping study completion
- Ongoing: Northern deposits drilling and resource updates
- Next Phase: Further MRE updates as information becomes available
The company maintains 100% ownership through its subsidiary Chilwa Minerals Africa of exploration licence EL0670/22/R1, issued in September 2025 for a 3-year exploration term. The adjacent EL0835/25 licence extends the project area southward.
Financial Position Supporting Growth
The resource upgrade positions Chilwa favourably for advancing development studies and attracting potential development partners. For instance, the high-grade Main NE zone provides optionality for staged development approaches, potentially reducing initial capital requirements.
This strategic flexibility becomes particularly valuable when considering project financing and development partnerships in the current market environment.
Why Investors Should Follow Chilwa Minerals
Chilwa Minerals has transformed from an exploration-stage company to one with substantial, high-confidence mineral resources positioned for development. The identification of rare earth elements alongside traditional mineral sands products creates multiple value streams in growing markets.
Key Investment Differentiators:
- First Measured resources on the licence demonstrate exceptional geological confidence
- High-grade core zone enables development optionality and staged approaches
- Rare earth element potential from monazite adds strategic value beyond traditional mineral sands
- Premium products including leucoxene and garnet enhance revenue potential
- Proven metallurgical viability through successful test work programmes
Investment Tracking Rationale
The Chilwa Minerals rare earth discovery has positioned the company as a major player in the mineral sands sector, with significant upside potential due to its high-grade resources, rare earth element exposure, and clear development pathway. With the scoping study completion targeted for Q1 2026, investors should monitor this emerging critical minerals story closely.
| Resource Category | Tonnes (Mt) | THM % | HMC (Mt) |
|---|---|---|---|
| Measured | 21.3 | 4.44 | 0.95 |
| Indicated | 4.3 | 2.64 | 0.11 |
| Total Mposa | 25.6 | 4.14 | 1.06 |
The mineral sands industry's steady demand growth, combined with Chilwa's advancing resource base and development timeline, creates a compelling opportunity for investors seeking exposure to critical minerals with established end markets. Furthermore, the rare earth element component adds exposure to the rapidly growing clean energy and technology sectors.
Could Chilwa's Rare Earth Discovery Transform Your Portfolio?
With Measured resources now comprising 83% of Mposa's 25.65Mt deposit and the breakthrough identification of monazite adding rare earth element potential to the mineral sands opportunity, Chilwa Minerals is advancing rapidly toward development. The high-grade Main NE zone delivers exceptional 5.61% THM grades whilst providing strategic optionality for staged development approaches. As the scoping study targets Q1 2026 completion, investors should evaluate whether this emerging critical minerals story aligns with their investment objectives. Discover the full scope of Chilwa's resource upgrade and development pathway at www.chilwaminerals.com.au.
