Australian Mines Locks in Five Drill Targets to Expand High-Grade Scandium Project
Key Takeaways
- Australian Mines has defined five priority drill target areas and finalised a ~1,250m, ~50-hole aircore program at its 100%-owned Flemington Scandium Project in NSW, with drilling to commence upon receipt of APO approval from the NSW Resources Regulator.
- Flemington hosts a 2025 MRE of 6.3 Mt at 446 ppm scandium — described as one of the highest-grade reported scandium Mineral Resources globally — with ~98% classified as Measured and Indicated.
- The PFS currently underway is assessing a potential increase in annual scandium oxide production from the initial 60 tpa Scoping Study case to up to 180 tpa, driven by growing demand and a potential structural supply deficit.
- Metallurgical drilling is planned across the West, Northwest, and Main pit areas to support variability testing and recovery confirmation, feeding directly into PFS process and engineering design.
- The program also includes condemnation drilling to de-risk infrastructure siting for the processing plant and tailings storage facility — a practical step toward a construction decision that is often underappreciated by the market.
Five priority targets locked in as Flemington drilling prepares to commence
Australian Mines Limited (ASX: AUZ) has defined five priority drill target areas and finalised an approximately 1,250 m aircore drilling program comprising approximately 50 holes at its 100%-owned Flemington Scandium Project in New South Wales. Drilling is scheduled to commence following receipt of the required exploration activity approval for the proposed Assessable Prospecting Operation (APO) from the NSW Resources Regulator.
The program is designed to test large, under-drilled areas for new zones of scandium mineralisation, collect representative metallurgical samples, and assess proposed infrastructure locations — all feeding directly into the Pre-Feasibility Study (PFS) currently underway.
Andrew Nesbitt, Managing Director
“Flemington already hosts a high-grade scandium Mineral Resource. This program brings together five priority drill target areas defined from geological mapping, magnetic interpretation and project-development requirements, while also collecting representative metallurgical samples from the West, Northwest and Main pit areas. The work is designed to test large, under-drilled areas for opportunities to establish substantial new mineralised zones, while providing key geological, metallurgical and site-layout information for the PFS.”
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Inside the five target areas
The planned drilling program covers five priority areas identified through geological mapping, geophysical interpretation, and project-development requirements. Two targets correspond with mapped or interpreted clinopyroxenitic units (a type of igneous rock associated with scandium-bearing mineralisation) within the Tout Intrusive Complex. Two further areas were identified from reduced-to-pole total magnetic intensity (TMI-RTP) data. The fifth area serves a dual purpose, assessing both potential mineralisation extension and infrastructure siting.
| Target Name | Type | Approximate Dimensions | Method Identified | Purpose |
|---|---|---|---|---|
| Ofiv_p | Clinopyroxenite | ~500 m × 500 m | Geology-led | Test scandium mineralisation in interpreted clinopyroxenitic unit |
| Ofiv_g | Clinopyroxenite | ~1.6 km × 450 m | Geology-led | Test scandium mineralisation in interpreted clinopyroxenitic unit |
| TMI-RTP Target 1 | Geophysical | ~2.5 km × 500 m | Magnetic interpretation | Test whether magnetic anomaly represents favourable intrusive lithologies |
| TMI-RTP Target 2 | Geophysical | ~1.2 km × 400 m | Magnetic interpretation | Test whether magnetic anomaly represents favourable intrusive lithologies |
| Expansion/Condemnation Area | Dual-purpose | Not specified | Project-development requirements | Assess mineralisation extension and de-risk infrastructure siting (processing plant, tailings storage facility) |
It is important to note that the TMI-RTP magnetic responses may represent concealed extensions of favourable intrusive lithologies. Magnetic response alone does not confirm the presence of scandium mineralisation, and drilling will determine the underlying lithologies and whether mineralisation is present.
The stated dimensions represent approximate plan-view areas selected for drill testing and do not represent mineralised widths, estimates of tonnage or grade, Mineral Resources, or Exploration Targets as defined by the JORC Code.
Metallurgical drilling is also planned, with dedicated holes within each of the three high-grade pit areas identified in the Flemington Scoping Study:
- West, Northwest and Main pit areas
- Representative samples to assess variability across grade, lithology, weathering, and mineralogical characteristics
- Results will support metallurgical variability testing, recovery confirmation, and further development of the PFS process and engineering design
Why scandium — and why Flemington stands out
Scandium is a rare metal used primarily as an alloying agent in high-performance aluminium alloys, which improves strength and weldability. It also plays a role in solid oxide fuel cells (a clean energy technology) and aerospace applications. Supply is extremely limited globally, which makes new high-grade deposits strategically significant for industries seeking secure sources.
Flemington’s credentials within this context are notable. The project hosts a 2025 Mineral Resource Estimate (MRE) of 6.3 Mt at 446 ppm scandium at a 300 ppm cut-off, described as one of the highest-grade reported scandium Mineral Resources globally, with approximately 98% classified as Measured and Indicated. Metallurgical testwork underpinning the Scoping Study demonstrated a scandium recovery of 90.8% using a conventional hydrometallurgical flowsheet.
The near-surface scandium discovery at Flemington established the geological foundation that now underpins the current Mineral Resource, with high-grade intercepts concentrated in the shallow oxide and transitional zones that inform the pit designs being assessed in the PFS.
The PFS is currently assessing the potential to increase annual scandium oxide production from the initial 60 tpa Scoping Study case to up to 180 tpa, driven by growing scandium demand and the potential for a structural supply deficit. These figures represent assessment cases being evaluated as part of the PFS and do not constitute confirmed production targets or forecast financial information at this stage.
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What comes next for AUZ investors
The near-term sequence is clear. Investors should watch for the following milestones in order:
- Receipt of APO approval from the NSW Resources Regulator, which triggers drilling commencement
- Execution of the aircore drilling program (approximately 50 holes / approximately 1,250 m)
- Assay results and geological interpretation from the five target areas
- Metallurgical variability samples feeding into PFS process and engineering design
- PFS outcomes, including assessment of the up-to-180 tpa production scenario
Resource expansion at a globally high-grade scandium deposit, combined with metallurgical data feeding directly into the PFS, could meaningfully advance the project development timeline. The condemnation drilling also de-risks infrastructure siting — a practical step toward feasibility that is often overlooked but carries real weight in moving a project closer to a construction decision.
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