Key Highlights

  • Initial ARGO testwork at Solvomet Belgium achieved leach recoveries of up to 99% of silver from zinc leach residue
  • Awarded A$1.2 million development grant from Flanders Innovation and Entrepreneurship agency in August 2026
  • ARGO pilot plant construction targeted for Q1 2027, with full-scale plant engineering also under way
  • Post-quarter A$3.2 million Placement completed to accelerate ARGO testwork and VOLTA pilot plant commissioning

ARGO Technology Delivers Early Testwork Results

Zinc of Ireland Limited (ASX:ZMI) is progressing what could prove to be one of the more commercially timely technologies in the critical minerals space. Its ARGO hydrometallurgical process is designed to extract zinc, lead, silver, germanium, gallium and indium from zinc leach residue — a toxic industrial waste stream generated at primary zinc smelting facilities globally. Initial testwork at Solvomet, a leading metallurgical research centre in Belgium, delivered leach recoveries of up to 99% of silver from the residue, an outcome the company describes as exceptional.

Silver is typically the highest-value contained metal in zinc leach residue, and recovery at this level, if maintained through further testwork and at pilot scale, would significantly underpin the Economics of the ARGO process. Results for the recovery of the critical minerals — germanium, gallium and indium — are expected in the coming weeks, and those figures will be closely watched given the premium valuations attached to these elements in semiconductor and defence applications.

Government Recognition of Industrial Need

In August 2026, Zinc of Ireland was awarded a development grant of approximately A$1.2 million from VLAIO, the Flanders Innovation and Entrepreneurship agency. The award is meaningful beyond its dollar value. It reflects recognition by European industrial policy of the need for technologies that address zinc leach residue as a problematic waste stream — one that accumulates in large volumes at smelters across Europe and Asia — and confirms that ARGO is being evaluated by a sophisticated institutional assessor as a credible solution.

The company has accelerated and expanded its testwork work plan at Solvomet to fast-track commercial development timelines, with pilot plant construction now targeted for Q1 2027. Engineering work for a full-scale ARGO plant is progressing in parallel, alongside a techno-economic study that will quantify the commercial case for deployment at industrial scale.

VOLTA Technology Moving Toward Commercial Demonstration

Alongside ARGO, Zinc of Ireland is advancing its VOLTA technology for lead-acid battery recycling through its Partnership with SERI Industrial in Italy. During the quarter, the partners identified further process improvements, which are expected to be implemented in a new, larger commercial-scale demonstration plant at SERI's recycling facility. That plant is targeted for commissioning in Q4 2026.

Commercialisation discussions have commenced, with the company exploring a licensing agreement and an engineering, procurement and construction (EPC) agreement to support commercial deployment. Zinc of Ireland plans to commence commercialisation activities across Europe from late 2026, supported by implementation of the EU Battery Regulation — a legislative framework that will mandate minimum recycled content thresholds in batteries placed on the European market.

Kildare Drilling Adds Critical Mineral Dimension

At the Kildare zinc-lead-germanium project in Ireland, the company commenced a 3,500-metre drilling program targeting resource extensions and regional step-out targets. The program is also specifically designed to assess the critical mineral content of Kildare's mineralisation, particularly germanium, gallium and indium — the same elements targeted by the ARGO technology, creating a thematic alignment between the company's exploration and processing activities. The first hole has been completed and the rig has moved to the second location.

Post-Quarter Placement Funds Acceleration

After quarter end, Zinc of Ireland completed a A$3.2 million placement. The proceeds are specifically allocated to accelerate ARGO testwork, complete the ARGO techno-economic study, commission the VOLTA pilot plant, and progress drilling and critical mineral evaluation at Kildare.

Risks

Both ARGO and VOLTA are pre-commercial technologies. The path from positive testwork results to a commercially deployed process at industrial scale involves substantial technical, regulatory and commercial execution risk. Feedstock agreements — securing access to zinc leach residue from smelter operators — are a critical dependency for ARGO commercialisation that has not yet been addressed publicly. The European critical mineral processing market is competitive, and multiple technology developers are pursuing similar recovery pathways from industrial waste streams.

What to Watch Next

Critical mineral leach recovery results from Solvomet — particularly for germanium, gallium and indium — are the most immediate catalyst. VOLTA pilot plant commissioning in Q4 2026 and results from the Kildare drill program will also inform the market's assessment of the company's multi-stream commercialisation strategy.

Sector Context

The European Union's Critical Raw Materials Act has placed germanium, gallium and indium on the list of strategic materials requiring domestic Supply chain development. Both elements have recently been subject to Chinese export restrictions, amplifying Demand for European-sourced alternatives. A technology that can extract them from existing industrial waste streams — without requiring new mines — carries a compelling policy and commercial narrative in the current European resource environment.