Nimy Resources Unveils World-Class Gallium Discovery with 740 Tonnes of Contained Gallium Trioxide
Nimy Resources (ASX:NIM) has delivered exceptional results from its Block 3 project in Western Australia, establishing a maiden JORC gallium resource that positions the company at the forefront of critical minerals supply. The resource delivers 7.23Mt at 102g/t Ga₂O₃ using a 70g/t cut-off, containing 740 tonnes of gallium trioxide and 3,890 tonnes of rare earth oxides (TREOs).
With gallium grades exceeding 100g/t, the Nimy Resources gallium discovery ranks amongst the highest-grade gallium deposits globally. The resource covers only a 0.4km² footprint within oxide and transition zones down to 100 metres depth, leaving substantial exploration upside both along strike and at depth.
Additional exploration targets indicate potential for up to 26Mt at 100g/t Ga₂O₃ and 100Mt at 810ppm TREO, highlighting the scale of this discovery.
Exploration Targets Signal Massive Growth Potential
Beyond the maiden resource, SRK Consulting has identified five new gallium exploration targets and one rare earth exploration target at Block 3. These conceptual targets suggest the mineralisation extends significantly westward and northward, with known gallium mineralisation continuing 150 metres below the current resource boundary.
| Exploration Target | Tonnage Range (Mt) | Grade Range (ppm Ga₂O₃) |
|---|---|---|
| Block 3 East ET-1 | 4-5 | 70-100 |
| Block 3 East ET-2 | 8-12 | 70-100 |
| Block 3 East ET-3 | 4-5 | 80-100 |
| Block 3 West ET-1 | 1-2 | 60-100 |
| Block 3 West ET-2 | 1-2 | 60-100 |
| Total Combined | 18-26 | 70-100 |
The rare earth exploration targets are equally impressive, spanning 70-100Mt at 500-710ppm TREO with valuable neodymium-praseodymium content ranging 85-125ppm. Notably, rare earth grades surrounding the gallium zones are higher than those within the gallium resource itself, indicating potential for a separate, high-value rare earth operation.
Understanding Gallium: The Critical Metal Driving Advanced Technology
Gallium represents one of the world's most strategic critical minerals, essential for next-generation semiconductors, military defence systems, artificial intelligence computing, 5G telecommunications, electric vehicles, and renewable energy infrastructure. Unlike traditional base metals, gallium cannot be mined as a primary product—it typically occurs as a byproduct of aluminium and zinc processing.
What makes the Nimy Resources gallium discovery exceptional is its potential to support standalone gallium production. Traditional gallium recovery from bauxite yields approximately 50ppm gallium content with 60% recovery rates during processing.
Nimy's Block 3 deposit delivers 102g/t gallium oxide grades—more than double typical bauxite concentrations—with preliminary testing showing 70% extraction under mild acid leaching conditions.
What Makes This Discovery So Critical?
China currently controls over 98% of global gallium supply, producing approximately 750 tonnes annually from a global capacity of 1,124 tonnes. However, China implemented a total export ban on gallium in late 2023, creating severe supply constraints for Western nations.
The US Geological Survey ranks gallium as having a 100% probability of supply chain disruption with potential GDP losses exceeding USD$1 billion, placing it alongside the highest-risk critical metals. This supply crisis has transformed gallium from a specialty byproduct into a geopolitically strategic commodity.
Furthermore, gallium's unique properties make it irreplaceable in advanced semiconductor applications, particularly those requiring high-frequency operation and extreme reliability.
Strategic Timing Aligns with Government Critical Minerals Push
The Nimy Resources gallium discovery comes at a pivotal moment for critical minerals security. In October 2025, the US and Australia signed a landmark agreement committing A$8.5 billion toward priority critical minerals projects, with each government pledging A$1 billion over six months.
The Australian government specifically allocated A$200 million in concessional equity to the Alcoa-Sojitz gallium recovery project, demonstrating strong policy support for gallium development. Nimy has positioned itself strategically within this landscape through a non-binding MOU with US critical minerals group M2i Global for gallium supply into the United States.
This agreement provides a potential pathway to market for Nimy's future production, aligning with Western efforts to establish secure, non-Chinese gallium supply chains.
"This resource confirms that Block 3 is an exceptional gallium discovery with grades that are amongst the highest in the world. Our focus is firmly on growing the high-grade resource by extending the known mineralisation and testing the new exploration targets we have outlined," states Luke Hampson, Managing Director.
The project's location in Western Australia provides additional strategic advantages, with proximity to rail infrastructure via Koolyanobbing connected to Esperance Port, and road access from Perth through established mining corridors.
Metallurgical Progress Validates Production Pathway
Technical Advisor Tony Tang's metallurgical programme with Curtin University has demonstrated promising extraction characteristics from Block 3 samples. Early testing confirms that gallium-rich minerals can be effectively dissolved using mild acid leaching conditions, with successful separation techniques already developed for gallium purification.
"The innovative approaches in extractive metallurgy have shown that gallium-rich minerals from Block-3 can be effectively dissolved using mild acid leaching conditions. We have successfully investigated and are developing a straightforward method to separate gallium from other metals," explains Tony Tang, Technical Advisor.
CSIRO mineralogical analysis reveals that gallium occurs primarily within clay minerals through ionic substitution, showing strong associations with chlorite minerals. This mineralogy supports conventional processing approaches, with the flowsheet expected to be comparable to existing chemical processes for clay and laterite minerals.
Recovery rates approach 90% of gallium from leach solutions, indicating robust economics potential.
How Does the Dual-Commodity Model Work?
The presence of significant rare earth content adds considerable value to the project economics. With 538ppm TREO within the gallium resource and higher-grade rare earth zones surrounding the gallium mineralisation, Block 3 offers potential for dual-commodity production streams.
This diversification provides additional revenue security and positions Nimy to capitalise on both critical metals markets simultaneously. In addition, rare earth elements present their own strategic value proposition given Western nations' focus on reducing dependence on Chinese supply chains.
Investment Case: Positioned for Critical Minerals Shortage
Nimy Resources presents a compelling investment opportunity at the intersection of critical minerals scarcity and geopolitical supply chain restructuring. The company holds a world-class gallium asset with grades exceeding 100g/t—amongst the highest globally—while traditional sources face unprecedented supply constraints.
| Key Investment Metrics | Value |
|---|---|
| Resource Grade | 102g/t Ga₂O₃ (world-class) |
| Contained Metal | 740t gallium trioxide |
| Exploration Upside | 18-26Mt additional targets |
| Rare Earth Bonus | 3,890t TREO contained |
| Recovery Rate | 70%+ extraction demonstrated |
| Strategic Location | Tier 1 jurisdiction, infrastructure access |
The gallium market presents exceptional fundamentals with current pricing around US$1,230/kg following China's export restrictions. Unlike traditional commodities, gallium's criticality for advanced technologies creates price inelasticity, while supply constraints support sustained premium pricing.
What Sets Nimy Apart Technically?
Nimy's technical progress, including positive metallurgical results and clear processing pathways, distinguishes it from purely exploratory critical minerals companies. The dual gallium-rare earth resource provides diversified revenue potential while exploration targets offer significant resource growth opportunities.
The combination of world-class grades, proven metallurgy, and exceptional exploration upside creates multiple value drivers. Moreover, the geological setting indicates potential for additional discoveries across the broader Mons Project area, spanning approximately 30km² of prospective ground.
Market Positioning and Future Outlook
With 353.5 million shares on issue and strong government support for critical minerals development, Nimy Resources offers leveraged exposure to one of the most strategic mineral sectors. The timing of this discovery aligns perfectly with Western governments' urgent need to establish domestic critical minerals supply chains.
The Block 3 discovery represents more than a resource upgrade—it establishes Nimy as a potential cornerstone of Western gallium supply security. The technical and strategic foundations are now in place to capitalise on unprecedented market opportunities in critical minerals.
Furthermore, ongoing exploration activities, including high-resolution aeromagnetic surveys and extension drilling, are expected to further enhance the resource base. The company's systematic approach to both resource development and metallurgical advancement positions it to achieve production readiness as market conditions continue to favour critical minerals development.
The Nimy Resources gallium discovery addresses a critical gap in the global supply chain at precisely the moment when Western nations are prioritising supply security. This strategic alignment, combined with world-class geology and proven metallurgy, creates a compelling investment proposition in the rapidly evolving critical minerals sector.
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