Highlights

  • The maiden JORC Inferred Mineral Resource Estimate for the Red Mountain Lithium Project is 500Mt at 1,139ppm Li for 3.03Mt of contained LCE, including a high-grade component at Red Mountain North of 47.9Mt at 2,193ppm Li for 0.56Mt LCE at a 1,300ppm cut-off.
  • Final assay results from the October 2025 drilling campaign confirmed continued high-grade intersections in the project's northern area, with drill-holes RMRC016, RMRC017, and RMRC018 intersecting 10.6m, 9.1m, and 9.1m of combined lithium mineralisation respectively, with grades in RMRC017 reaching 2,770ppm Li.
  • Improved beneficiation testwork results using a pre-soaking methodology ahead of attrition-scrubbing upgraded lithium by 46.2% from 2,600ppm to 3,800ppm in the less-than-20 micron product, with lithium recovery improving to 68.9% from 59.6% under prior testing.

 

Venari Minerals NL (ASX:VMS) delivered its most significant corporate milestone to date during the quarter ended 31 March 2026, reporting a maiden JORC 2012 Inferred Mineral Resource Estimate for the Red Mountain Lithium Project in Nevada, USA, of 500 million tonnes at 1,139 parts per million lithium for 3.03 million tonnes of contained Lithium Carbonate Equivalent. The resource announcement, together with ongoing drilling results and improving beneficiation testwork, establishes Venari as a materially different company from the explorer it was twelve months ago.

The quarterly activities report, released 24 April 2026, documents the resource estimate in detail, provides final assay results from the October 2025 drilling campaign, and outlines advancing beneficiation testwork results that are beginning to address one of the central technical questions facing any lithium clay project: how effectively can the lithium be recovered from the host material.

Red Mountain Lithium: Maiden Resource Establishes Scale

The maiden Mineral Resource Estimate is reported above a preferred 700ppm lithium cut-off grade and is subdivided into two mineralised zones with distinct characteristics. Red Mountain North contributes 91.6 million tonnes at 1,618ppm lithium for 0.79 million tonnes of LCE, with a higher-grade sub-domain of 47.9 million tonnes at 2,193ppm lithium for 0.56 million tonnes of LCE applying a 1,300ppm cut-off. Red Mountain Central, representing the larger but somewhat lower-grade portion of the system, contributes 408 million tonnes at 1,031ppm lithium for 2.24 million tonnes of LCE.

In aggregate, the 3.03 million tonne LCE resource positions Venari among the larger lithium explorers on the ASX on a contained LCE basis — a significant repositioning for a company that was a relatively early-stage Nevada explorer prior to this announcement. For investors seeking to contextualise the resource, it is worth noting that lithium clay deposits, by their nature, tend toward large-tonnage, lower-grade profiles compared to hard rock or brine lithium assets, which means the path to economic viability is more dependent on processing cost efficiency than grade alone.

Critically, the company notes that mineralisation remains open along strike and at depth, with significant drill intersections and high-grade surface samples sitting outside the current MRE extents. This means the 3.03 million tonne LCE figure is a floor rather than a ceiling in terms of the project's resource growth potential, assuming continued exploration success.

October 2025 Drilling: High-Grade Confirmed in the North

Final assay results were received during the quarter from the October 2025 RC drilling campaign. Three drill holes — RMRC016, RMRC017, and RMRC018 — collectively strengthened the high-grade northern domain that has become a focus area for the project.

RMRC016 intersected a combined 10.6 metres of lithium mineralisation, including 6.1 metres at 2,130ppm lithium from 32 metres. RMRC017 returned a combined 9.1 metres of lithium mineralisation, including 3 metres at 2,770ppm lithium from 33.5 metres. RMRC018 returned a combined 9.1 metres, including 4.6 metres at 1,320ppm lithium from 22.9 metres. These results add to a growing body of evidence that lithium mineralisation grading above 2,000ppm has now been intersected in drill-holes spanning over one kilometre of strike in the northern area.

Beneficiation Testwork: Pre-Soaking Improves Results

A persistent technical question for lithium clay projects is the efficiency with which lithium can be separated and concentrated from the host clay matrix through physical beneficiation — an important prerequisite before downstream chemical processing. Venari has been advancing beneficiation testwork using attrition-scrubbing, and the March quarter saw a meaningful improvement in results through the introduction of a pre-soaking step prior to the scrubbing process.

Using high-grade feed material at 2,600ppm lithium, the pre-soaking methodology achieved a lithium upgrade of 46.2% to 3,800ppm lithium in the less-than-20 micron product fraction, with a mass reduction of 54.6% — meaning that more than half of the feed mass was directed to a lower-lithium stream, concentrating the lithium in a significantly smaller, higher-grade product. Lithium recovery in the product fraction was 68.9%, an improvement from 59.6% achieved in prior tests without the pre-soaking step.

While these results remain at the laboratory scale and significant work remains before any commercial processing flowsheet is defined, the incremental improvement trajectory is an important signal for the market. The reduction of calcite content in the product fraction from 35% to 29.8% is also a positive indicator, as carbonate minerals in the feed can complicate downstream lithium recovery chemistry.

Corporate: Share Register Tidied

The company completed a share buyback of unmarketable parcels of 3,846 shares or fewer at 13 cents per share, streamlining the share register and reducing ongoing compliance costs. While a modest corporate action, it reflects a management team attentive to administrative efficiency. The company's capital structure and cash position will be important considerations as it advances toward a follow-up drilling programme and continued beneficiation testwork in coming quarters.

Conclusion

Venari Minerals' March 2026 quarter is defined by the transition from explorer to meaningful resource holder, with a 3.03 million tonne LCE maiden resource placing it firmly on the map of significant ASX lithium explorers. The combination of ongoing mineralisation growth potential, high-grade northern domain confirmation through recent drilling, and improving beneficiation testwork results provides a substantive base from which the company can build its development narrative. The technical challenges inherent to lithium clay processing remain real, but the resource scale and grade profile at Red Mountain provide the foundation for a credible long-term project development pathway.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice.