Rare earth exploration on a small budget

Ausmon Resources Limited (ASX:AOA) is a Sydney-based explorer, incorporated in 2008, with projects aimed at rare earth elements and base metals. Its most advanced focus, based on its half-year report, is a group of rare earth tenements in South Australia's Murray Basin. It has no reported resource and no revenue.

The central point is that Ausmon has early rare earth drill intercepts and a stated drilling plan, but its latest reviewed accounts show very little cash, a material uncertainty about Going Concern and reliance on a Loan facility.

The Murray Basin rare earth project

According to Ausmon's half-year report to 31 December 2025, dated 13 March 2026, four granted tenements cover 2,529 square kilometres roughly 200 kilometres south-east of Adelaide, targeting the Loxton and Parilla Sands. Aircore drilling in 2024 and 2025 returned best one-metre results of about 1,157 to 2,192 parts per million total rare earth oxides.

These are exploration results from individual metre samples, not an established resource. The company has outlined three target areas covering 122 square kilometres and plans grid drilling at 200 to 400 metre spacing, starting with an initial 10 square kilometre area at Jabuk. That depends on landholder access agreements and community consultation, with drilling expected in 2026 according to the report.

Other projects

Ausmon also holds 100 per cent of the Turkey Hill rare earth licence in the Drummond Basin, Queensland, where no field work was done in the period after a rain-affected program. In Broken Hill, New South Wales, it holds five base metal licences covering about 685 square kilometres, where a hole at Enmore East stopped short of its target depth. Drilling is planned to resume in 2026, subject to financing.

Finances and funding

For the six months to 31 December 2025, the operating loss was A$273,336. Cash was A$40,500 at period end, up from A$10,968 at 30 June 2025. Total liabilities were A$1.56 million, including A$785,000 drawn from a loan Facility with Fort Capital Pty Ltd and A$500,000 of 10.5 per cent loan notes maturing on 30 March 2026.

The Fort Capital facility was lifted from A$1.6 million to A$2 million in December 2025 and extended to 1 October 2027. After the period, a further A$100,000 was drawn, taking total drawings to A$885,000 with A$1.115 million available. The loan is unsecured, carries 11 per cent interest and must be repaid from any Equity raising unless the lender agrees otherwise.

Auditor Stantons drew attention to a material uncertainty about going concern. Shareholders approved the issue of up to 200 million shares at the November 2025 AGM, but the report says none had been issued by 27 February 2026. The company has around 1.43 billion shares on issue, so further issues could be dilutive.

Risks and context

Rare earth intercepts need metallurgical and economic testing before they can be called a project. Ausmon's report lists standard risks: speculative exploration, licence conditions, land access and native title, key personnel and funding. A very small Balance Sheet limits how much drilling can be done without new capital.

What to watch

Confirmed items from the report are the planned 2026 grid drilling, subject to access, and potential resumption at Enmore East, subject to financing.