Published On: March 15th, 2024
As the world accelerates its transition towards sustainable energy and strives for net-zero emissions, there has been a significant surge in the demand for critical minerals. Copper(Cu), Platinum Group Elements (PGE), and Nickel(Ni) are categorised as critical minerals for energy transitions and have a vital role in the green transition. According to Nornickel, global copper demand will reach approximately 30 MTPA (~ a 20% rise) by 2035. In the future, an imbalance between demand and supply is expected due to increasing demand and potential risks to supply. Over half of the global copper supply comes from the nations classified as ‘unstable’ or ‘extremely unstable’. In addition, there is a worldwide decline in the grade of copper ore. On the other hand, the increasing demand is propelled by energy transition, urbanisation, and technological advancement.
- As per WPIC, platinum-based PEM technologies can deliver 11% CO2 reduction by 2030
- Ni demand is projected to grow by ~45% amid the green energy transition by 2030, primarily driven by EV battery chemistry (NMCs)
- Amid sharply escalating geopolitical tensions and growth in hybrid electric vehicle production, the demand for platinum group elements is expected to increase significantly
To address the increasing demand, mining Companies are proactively scouting greenfield deposits of critical minerals worldwide, with Australia leading the charge in this endeavour.
GCX Metals (ASX: GCX) (‘GCX Metals’ or the ‘Company’) is a leading mineral exploration Company focusing on unearthing critical minerals needed for energy transition. The Company holds a diversified portfolio of critical mineral projects in Western Australia, such as the Dante Cu-Au-PGE-Ni Project, the Onslow Cu-Au Project, Southern Cross Li, etc.
Figure 1: GCX Metals Limited Current and Proposed Projects Location
Dante Cu-Au-PGE-Ni Project
The Dante Cu-Au-PGE-Ni Project is located in Western Australia. The West Musgrave region is renowned for its vast deposits of critical minerals such as copper, cobalt, and nickel. This flagship Project was acquired 100% by the Company in October 2023. GCX Metals has completed a Rock Chip program, identifying mineral anomalies for Cu-Au-PGE-Ni (Copper, Gold, Platinum Group Elements, and Nickel). Moreover, the Project encompasses large-scale magmatic Cu-Au-PGE-Ni targets and PGE-Au Reef targets, including a 23 km stretch of outcropping mineralised strike featuring notable concentrations of PGE3 (up to 3.4 g/t), V2O5 (1.13%), and TiO2 (23.2%). The Project is close to Australia’s largest Cu-Ni sulphide deposit of BHP’s $1.7 billion Nebo-Babel Project, which is expected to be operational by 2025.
Figure 2: Location of Dante Project (Close Proximity to The BHP’s Nebo-Babel Mines)
Dante Project Update
GCX Metals is advancing on its recently acquired Dante Cu-Au-PGE-Ni Project site. On March 12th 2024, the Company commenced its first-ever RC (reverse circulation) drilling program on the Dante site, which spans over a magmatic copper-gold sulphide and platinum-palladium-gold-copper reef targets stretching over a 17 km strike at the Project.
The Company has outlined plans to execute a 7,000m drilling program. Phase I of the drill program will start on the Cronus Prospect – a magmatic copper-gold sulphide target. The Cronus Prospect is a large-scale interpreted intrusion, spanning 7km in length and 1.5km wide, with pronounced auger geochemical anomalies of large Cu-Au-Ni-PGE. Post Phase I, the Company plans to drill and test at all three priority outcroppings of Dante reefs – Hyperion, Crius and Oceanus.
Figure 3: Dante Project Drilling Commencement Site
Mr Thomas Line, GCX’s CEO and Managing Director, shared his views on the new development:
“We are very pleased to have established the camp and commenced our maiden drill program at the Dante project. This drill program will mark the first broad-scale systematic drilling conducted at Dante. The scale and quality of the targets are exceptional, and we look forward to learning more as the program progresses over the coming weeks and months.”
Southern Cross LI-REE Project
Figure 4: Lithium Soil Heat Map at Koolyanobbing Shear Zone
The Southern Cross Project is located within the greenstone belts of Southern Cross, which are rich in lithium (Li) deposits. The Project comprises four tenements covering approximately 800km2. The occurrence of Li throughout the greenstone belt is evidenced by the presence of the Mt Holland project (186Mt @ 1.53% Li2O) and the Split Rocks project (11.9Mt @ 0.72% Li2O). In September 2023, the Company started Phase 1 of soil sampling, comprising 1,770 samples. The initial soil sampling results have been promising; hence, the Company is expediting further detailed sampling and exploration.
Mining Exploration Tenements
As of December 31st, 2023, the Company is interested in the tenements.
Figure 5: GCX Metals Mining Exploration Tenements
About Mr Thomas Line, CEO and MD of GCX Metals
Figure 6: Mr Thomas Line, CEO and MD of GCX Metals
Mr Thomas joined GCX Metals as part of the acquisition of Dante Resources. Before the acquisition, he headed the operations at Dante Resource as CEO and MD. He is a seasoned geologist with over 12 years of experience developing and managing exploration projects from initial exploration to production. He has also led junior exploration companies on the Australian stock market for over 4 years.
Investor’s Outlook
- GCX Metals has successfully obtained clearance to advance the drilling program at the site, with drilling commencing on the announced schedule (March 2024) to test critical mineral targets
- Dante Cu-Au-PGE-Ni Project is just 15 km from BHP’s giant Nebo-Babel mining site (slated to begin operations in 2025). The Project exhibits similar geology, boosting confidence in establishing reserves
- GCX has a diversified portfolio of projects in critical and next-generation minerals – Copper, PGE, Li-REE and Gold at varying stages of development
- GCX Metals Limited’s share price was traded at AUD 0.051 per share as of March 13th, 2024, with a 52-week range movement of AUD 0.023 – 0.059 per share
- The Company’s market capitalisation is AUD 12.80 million, with 278.5 million shares issued and outstanding as of March 13th, 2024
Visit the Company’s official website for detailed information and updates.
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