Highlights

  • RareX's maiden drilling at Khaleesi has confirmed a copper-nickel sulphide system within a layered mafic intrusion at the Niobe prospect.
  • Gallium enrichment has been identified in granites and overlying weathered material at multiple prospects.
  • An induced polarisation survey and initial gallium metallurgical testwork are planned as the next steps.

Western Australia's Yilgarn region remains among the most active exploration provinces in the country, and critical minerals such as gallium are adding a fresh dimension to the search. Within the broader universe of Metal and Mining Stocks on the ASX, RareX Limited (ASX:REE) has drawn attention after laboratory assays from its maiden drilling campaign at the Khaleesi Project confirmed a copper-nickel sulphide system beneath a gravity and magnetic anomaly. The company, best known for its rare earths interests, also reported gallium enrichment across several targets. The results broaden the exploration story at Khaleesi, although they remain early-stage and further work is needed to understand the scale and continuity of mineralisation.

Copper-Nickel Sulphides Confirmed at Niobe

RareX said its reverse circulation programme, which was the company's initial drilling to target basement rocks at Khaleesi, intersected copper-nickel sulphides in a layered mafic intrusion at the Niobe prospect. The mineralisation sits beneath a coincident gravity and magnetic anomaly, a geophysical signature often associated with dense intrusive rocks.

Laboratory assays confirmed a broader copper zone that had earlier been identified using portable X-ray fluorescence readings, which are only indicative. The reported intervals are drill intercept lengths, and true widths have not been stated. Grades are modest at this stage, so the significance lies more in confirming a sulphide-bearing system than in the intercepts themselves.

Managing Director and chief executive James Durrant said the drilling had delivered on several fronts and confirmed a copper-nickel sulphide system within a layered mafic intrusion. He noted that several holes stopped at, or just into, the top of the intrusion, meaning the system remains open at depth and largely untested.

Gallium Enrichment Across Multiple Prospects

Gallium enrichment was identified in granites at Niobe and at the Nb prospect, as well as in the overlying weathered regolith. Results included shallow intervals in the regolith and a long granite-hosted intercept at Nb, again expressed as drill intercepts rather than true widths.

Gallium is used in semiconductors, LEDs, defence electronics and solar technology. China dominates global Supply and has imposed export restrictions, which has increased interest in alternative sources. However, gallium is typically recovered as a by-product, and metallurgical testwork is required to determine whether it can be extracted economically from these rocks.

Next Steps at Khaleesi

RareX plans to begin an induced polarisation survey at Niobe in November. The technique can detect disseminated and massive sulphides and is intended to identify zones with higher concentrations of copper sulphides to guide follow-up drilling.

The company will also undertake initial metallurgical testwork on the gallium mineralisation to assess recovery potential. Khaleesi covers the Khaleesi Alkaline Intrusive Complex in the East Yilgarn, which RareX considers prospective for gallium, niobium and rare earths, and was acquired by the company several years ago.

Broader Portfolio and Partnerships

Beyond Khaleesi, RareX is progressing metallurgical work at its Cummins Range project in Western Australia, which contains rare earths, phosphate, gallium and scandium. The company is also part of a consortium with Iluka Resources Limited (ASX:ILU) targeting the Mrima Hill rare earths, niobium and phosphate project in Kenya.

This mix of Assets gives RareX exposure to several critical minerals themes, though each project is at a different stage and faces its own technical and funding requirements.

Western Australian Exploration Context

Layered mafic intrusions have long attracted explorers in Western Australia because they can host nickel, copper and platinum group element sulphides. Many such systems are only partly tested at depth, and geophysical methods such as gravity, magnetics and induced polarisation are commonly used to prioritise drill targets before deeper holes are committed.

Gallium has also become a growing focus for Australian explorers, with government programmes and co-funded drilling schemes supporting critical minerals exploration across the state. For RareX, combining base metals and gallium targets within the same project area could help make efficient use of exploration budgets, although each Commodity carries distinct technical requirements.

Risks and Challenges

The Khaleesi results are early-stage exploration findings based on drill intercepts with modest grades. Further drilling may not confirm economic mineralisation, gallium recovery is untested, and exploration funding depends on market conditions. Commodity prices for copper, nickel and gallium can also be volatile.

Khaleesi Gains a New Dimension

RareX's maiden Khaleesi drilling has confirmed a copper-nickel sulphide system at Niobe and gallium enrichment across multiple prospects, with geophysics and metallurgical testwork set to follow. The findings remain preliminary but broaden the project's potential beyond rare earths. The update reflects a wider trend among ASX-listed explorers pursuing multi-commodity critical minerals opportunities in Western Australia.