Australian Mines Limited (ASX:AUZ) Announces Significant Mineral Resource Increase
Mineral Resource Expansion
Australian Mines Limited (“Australian Mines” or “AUZ”) has announced a substantial increase in its JORC 2012 Mineral Resource Estimate (MRE) for the Flemington Scandium project. The latest update reveals an increase from 3.7 million tonnes (mt) to 6.3 mt at similar scandium grades of 458 parts per million (ppm) to 446 ppm.
The 2025 MRE indicates significant potential for additional mineralisation at lower cut-offs. At a 100 ppm cut-off for scandium, the mineralised inventory stands at an impressive 28 mt at 217 ppm scandium. Previously, this figure was reported at 4.5 mt with an average grade of 415 ppm scandium in October 2017. Notably, 98% of the 2025 MRE is classified as Measured and Indicated, with 90% located near the surface.
Quality and Composition Insights
The latest MRE also shows associated nickel and cobalt grades of 1350 ppm and 601 ppm respectively, suggesting a valuable composite resource. The Company plans to reconsider mining and metallurgical factors to optimise future production scenarios in light of this increase.
CEO Andrew Nesbitt stated, “The 2025 resource update not only confirms Flemington as a high-quality critical mineral resource but also as one of the best defined and highest-grade scandium resources within the area. This coupled with the near-surface lateritic nature of the resource should provide AUZ a competitive advantage.”
Broader Market Context
The relevance of scandium in the current market is underscored by growing demand projections, with the US Geological Survey noting a doubling supply and demand from 2021 to 2023. Predictions suggest a compound annual growth rate of 14.7% through to 2030. The increased interest in scandium, particularly its role in the hydrogen economy and its applications in lightweight alloys and electronics, emphasises the potential for Australian Mines’ Flemington resources.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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