MRG Metals Uncovers Gallium Discovery at Garies Rare Earth Project

MRG Metals Uncovers Gallium at Its Garies Rare Earth Project

MRG Metals Limited (ASX: MRQ) has reported significant gallium results from its Garies Project in South Africa's Northern Cape Province, adding a new critical mineral angle to a project already being advanced for rare earth elements (REEs) hosted in magnetite veins. According to the ASX announcement released on 2 July 2026, analysis of 85 drill samples averaged 290 ppm Gallium Oxide (Ga2O3), with a maximum assay of 450 ppm Ga2O3.

The update matters because the gallium is not being reported as a separate discovery sitting elsewhere on the tenure. Instead, it has been identified in direct association with the same rare earth and magnetite mineralisation already drilled at DrillTarg, one of the key targets within the Garies Project.

For investors, that raises the prospect of a potential by-product stream, although the company has made clear that further work is required to determine whether gallium can be economically recovered.

What the Report Shows

In the announcement, MRG set out a consistent set of gallium results across drill samples, a bulk metallurgical sample and rare earth-rich concentrates produced during testwork in South Africa. The key reported results are summarised below.

Those numbers show that gallium was present not only in the original drilled material, but also in the concentrate streams generated during processing tests. That is an important technical point. It suggests gallium is being carried through the processing circuit rather than being fully lost to waste in the early stages.

MRG also reported that previous drilling at DrillTarg had intersected rare earth oxides averaging 2.1% within a magnetite vein up to 5 metres thick. The gallium results now sit alongside that existing rare earth story rather than replacing it.

What Does the Chairman Say?

"The identification of significant Gallium associated with our Rare Earth mineralisation is very exciting, as it provides an additional avenue for technical evaluation at the Garies Project," said Andrew van der Zwan, Chairman of MRG Metals.

"While the Company's primary focus remains the development of the Rare Earth opportunity, these initial results support further metallurgical work to determine whether Gallium has the potential to be recovered as a by-product of future processing."

Why Gallium Matters in Critical Minerals Markets

Gallium is a niche metal, but it has become increasingly important because of its role in high-performance electronics. Unlike metals that are mined from dedicated ore bodies, gallium is typically produced as a by-product of aluminium and zinc processing. That matters because supply is often linked to the economics and operating decisions of other industries rather than gallium demand alone.

According to MRG's announcement, gallium is used in compounds such as Gallium Nitride (GaN) and Gallium Arsenide (GaAs). These materials are used in:

• Power electronics
• Electric vehicle fast chargers
• 5G radio frequency components
• Defence radar systems
• Semiconductor manufacturing
• Some renewable energy applications

Gallium's value comes from how these compounds perform in applications where heat, power efficiency and signal speed matter. In simple terms, gallium-based semiconductors can outperform traditional silicon in certain uses, particularly where devices need to operate efficiently at high voltage or high frequency.

Supply concentration is another reason investors watch gallium closely. The company noted that China dominates global gallium production and that exports remain subject to government export controls. Against that backdrop, any project reporting gallium outside China may attract attention, especially if the metal can be recovered as part of an existing processing flow.

Furthermore, MRG cited a 5N Gallium Oxide price of US$367.46/kg from Shanghai Metals Market data as at 1 July 2026.

Understanding the Technical Terms in Plain English

For readers less familiar with mining and metallurgy, several terms in the report are worth clarifying.

• ppm (parts per million): A way to measure very low concentrations. For example, 290 ppm means 290 grams per tonne of material.
• Ga2O3 (Gallium Oxide): The oxide form used to report gallium in lab analysis.
• REE / REO / TREO: Rare Earth Elements, Rare Earth Oxides and Total Rare Earth Oxides, referring to the suite of rare earth minerals and their reported oxide grades.
• Bulk sample: A larger sample made up of selected drill material for processing tests.
• QEMScan: A laboratory imaging method that identifies which minerals host specific elements.
• Pyrite: An iron sulphide mineral, often called fool's gold, which MRG has identified as the main host for gallium at Garies.
• ICP-MS: A precise laboratory technique used to measure very small amounts of metals and elements.

This educational point is important because the announcement is not just about headline grades. It is also about where the gallium sits in the rock and whether known processing methods might separate it.

The Geology Behind the Gallium Association

According to the report, the Garies Project is located in southern Namaqualand in South Africa's Northern Cape Province. The area contains a mix of igneous, sedimentary and metamorphic rocks, with the mineralisation hosted in the Kamiesberg Group, a complex sequence of gneiss subjected to very high temperature and pressure conditions deep in the Earth's crust around 1 billion years ago.

The style of mineralisation is described as structurally controlled magnetite veins or dykes. Rare earth minerals at Garies are hosted primarily in monazite, while accessory minerals include sericite, rutile, zircon and pyrite.

That pyrite now appears central to the gallium story. QEMScan microscopy and electron microscope element mapping at the Light Deep Earth (LDE) laboratory showed that gallium is hosted by free pyrite grains within the magnetite veins. Based on the mineralogical analysis reported by MRG:

• Pyrite makes up about 5% of the mineralised magnetite vein
• The pyrite contains about 0.4% gallium

This gives the gallium result a clear mineralogical explanation. Rather than simply reporting elevated assays with no obvious host, the company has identified the mineral carrying the metal. For investors, that makes future metallurgical testing more targeted.

What the Metallurgical Testwork Adds

The metallurgical update is arguably the most useful part of the announcement because it moves beyond exploration assays and begins to address process behaviour. MRG reported that a 351 kg bulk sample was compiled from selected drill intervals and submitted to LDE in Pretoria for testwork aimed at concentrating rare earth minerals.

The process was not designed specifically to recover pyrite or gallium. Even so, the gallium appears to have upgraded in several concentrate streams. The reported metallurgical gallium assays are below.

The same testwork also delivered cumulative REO recovery of 72.2% into monazite-rich product streams, reinforcing the company's primary rare earth development focus while also showing the gallium is not absent from the processing pathway.

How Is the Gallium Distributed Within Concentrates?

The mineral mapping work adds another layer of detail. In two gravity concentrates, the LDE QEMScan work found that 96.2% to 98.1% of the mapped gallium distribution was associated with pyrite. In practical terms, this means most of the gallium in those concentrates appears to sit in one identifiable mineral rather than being spread diffusely across multiple phases.

That matters because processing routes for pyrite concentration, including flotation, are already well understood across the mining industry. It does not confirm economic recovery at Garies, but it does give MRG a logical next step.

What Comes Next at Garies?

The report states that further metallurgical testwork at LDE will assess alternative processing methods aimed at selectively concentrating gallium-bearing pyrite and testing whether higher gallium grades can be produced in a potential concentrate. The near-term work programme therefore appears to include:

1. Selective pyrite concentration testwork
2. Assessment of achievable gallium grades in concentrate
3. Continued advancement of rare earth metallurgical work
4. Ongoing exploration across multiple Garies targets

MRG also noted that numerous targets remain for possible expansion of the current resource base within the broader Garies Project. These include extensions to defined deposits, geophysical targets and conceptual deeper targets.

In addition, the announcement highlights radiometric surveys as a useful exploration tool because they may help detect monazite concentrations directly or in nearby soils and alluvium. On tenure, the company reported that the relevant Prospecting Right 10343 was in good standing, with no known impediments to further development.

Why Investors Are Paying Attention

This ASX update does not present gallium as a stand-alone development case. MRG has been measured in its wording, and the caution in the announcement is important. The company explicitly stated that further technical and metallurgical studies are needed to determine whether gallium can be economically recovered as a by-product, and there is no certainty that future testwork will support a saleable concentrate.

However, the investment relevance is clear for several reasons. First, the gallium values appear consistent across a substantial drill sample set, rather than being based on a single isolated assay. Second, the metal has shown enrichment into concentrate streams during testwork. Third, the host mineral has been identified as pyrite, giving future process work a defined target.

The main points investors are likely to focus on are summarised below.

For rare earth investors, the report adds optionality without changing the core thesis. For critical minerals investors, it introduces gallium exposure in a project outside the dominant Chinese supply chain, though still at an early technical evaluation stage.

MRG's Garies Project remains primarily a rare earth development story. The latest announcement indicates it may also have by-product gallium potential, supported by drill assays, concentrate assays and mineralogical analysis. The next phase of metallurgical work will be important in determining whether that potential can move from interesting geology to an economically relevant processing outcome.

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