Western Yilgarn NL Critical Metals Discovery Exceeds 2.47% Cobalt

Western Yilgarn Delivers Exceptional Critical Metals Discovery at Ida Holmes

Western Yilgarn NL (ASX: WYX) has announced a significant breakthrough at its Ida Holmes Junction Project in Western Australia, with rock chip sampling revealing exceptionally high-grade critical metals mineralisation. The December 2025 ground reconnaissance programme has confirmed 2.47% cobalt, 1.07% nickel, 1.30% lead, and 126.25 ppm scandium oxide in sample results that substantially exceed historical grades at the site.

Located approximately 50 kilometres southwest of Gold Fields' Agnew Gold Mine, the discovery adds considerable strategic value to Western Yilgarn's diversified critical minerals portfolio. Furthermore, the results demonstrate continuity of the cobalt-nickel-scandium mineralised system across 120 metres of strike length east of the Ballard Fault Zone.

The fault's relationship to mineralisation presents an exciting exploration vector for future programmes. This Western Yilgarn NL critical metals discovery positions the company strategically within Australia's critical minerals landscape.

"These results represent a highly significant milestone for Western Yilgarn and further validate the exceptional critical minerals potential of the Ida Holmes Junction Project. Our latest ground reconnaissance rock-chip programme has confirmed the presence of very high-grade cobalt-nickel-scandium mineralisation," stated Pedro Kastellorizos, Non-Executive Director.

Outstanding Critical Metals Grades Confirmed

The latest sampling programme targeted the same quartz-hematite outcrop that previously yielded impressive results in September 2025. However, the current programme has not only confirmed continuity but delivered grades that significantly exceed the historical results of 1.68% Co, 0.36% Cu, 0.47% Ni and 1.56% Pb.

Standout Results from Current Programme:

The discovery of elevated scandium levels adds a particularly valuable dimension to the mineralised system. In addition, scandium is a critical technology metal essential for semiconductors and green technologies, with limited global supply sources making high-grade discoveries increasingly strategic.

What Makes These Grades Exceptional?

The cobalt grades of up to 2.47% place this Western Yilgarn NL critical metals discovery among the highest-grade cobalt occurrences in Western Australia. For instance, these grades exceed many established cobalt operations globally, where typical ore grades range from 0.5% to 1.5% cobalt.

Moreover, the concurrent presence of nickel, lead, and scandium creates potential for multi-metal recovery from a single operation. This diversification significantly enhances the project's economic potential compared to single-commodity deposits.

Understanding Scandium: The Technology Metal Game-Changer

What is Scandium?

Scandium is one of the rarest and most valuable critical metals, essential for advanced aerospace alloys, solid oxide fuel cells, and next-generation lighting systems. Unlike other rare earth elements, scandium is typically found in very low concentrations, making high-grade discoveries like those at Ida Holmes exceptionally valuable.

Market Dynamics

Current global scandium production is extremely limited, with only a handful of operations worldwide producing commercial quantities. Consequently, this scarcity has created significant supply chain vulnerabilities for technology manufacturers, particularly as demand grows from the aerospace and clean energy sectors.

Applications and Value

Scandium's unique properties make it indispensable for aluminium-scandium alloys used in military aircraft and spacecraft. Furthermore, it plays a crucial role in solid oxide fuel cells for clean energy generation. These applications command premium prices due to the metal's rarity and technical importance.

Why It Matters to Investors

The presence of scandium alongside cobalt and nickel at Ida Holmes positions this Western Yilgarn NL critical metals discovery to potentially serve multiple critical minerals markets from a single operation. This diversification significantly enhances the project's economic potential and reduces commodity-specific risks.

Strategic Location in Proven Mining District

The Ida Holmes Junction Project benefits from its position within one of Western Australia's most established mining regions. The project sits at the intersection of two major geological structures – the Holmes Dyke and the Mt Ida Fault.

The project lies within 60 kilometres of several world-class operations:

• Gold Fields' Agnew Gold Mine (50km northeast)
• BHP's Leinster and Mt Keith nickel projects (nearby)
• Delta Lithium's Mt Ida Lithium Project (60km south)

This proximity to established infrastructure and mining operations provides significant advantages for future development. For instance, the location offers access to power, transportation networks, and experienced mining personnel.

Geological Advantages

The geological setting is particularly favourable, as the project area lies within the same structural framework that hosts these major operations. The intersection of the Holmes Dyke and Mt Ida Fault creates ideal conditions for mineral concentration.

These large-scale geological structures often act as conduits for metal-bearing fluids, leading to the formation of high-grade mineral deposits. Consequently, this geological environment supports the potential for additional discoveries in the area.

Comprehensive Critical Minerals Portfolio

Beyond the Ida Holmes discovery, Western Yilgarn has assembled an impressive 205 million tonne bauxite resource across its portfolio. This establishes the company as a significant player in the critical minerals sector.

Global Bauxite Resource Breakdown:

The combination of substantial bauxite resources and emerging high-grade critical metals discoveries positions Western Yilgarn uniquely within the sector. This Western Yilgarn NL critical metals discovery offers investors exposure to multiple critical minerals from a single ASX-listed entity.

Bauxite Resource Quality

The company's bauxite resources demonstrate consistent alumina content across all three projects. However, the Julimar West project shows particularly high-grade characteristics with 36.1% Al₂O₃ content.

The lower silica content in the Julimar West deposit suggests potential for more efficient processing. This characteristic typically leads to higher-quality alumina production and reduced processing costs.

What Are the Next Steps and Exploration Timeline?

Western Yilgarn has outlined immediate follow-up activities to capitalise on this significant discovery. The company's systematic approach focuses on expanding the known mineralisation and understanding its geological controls.

Immediate Priorities

• Extended reconnaissance sampling across broader target areas
• Systematic evaluation of the Ballard Fault Zone's relationship to mineralisation
• Detailed geological mapping to define structural controls
• Planning for potential drilling programmes to test depth extent

Expected Timeline

The company plans to implement further reconnaissance sampling during Q3-Q4 2026. In addition, geochemical analysis will be conducted across expanded target areas to define optimal sampling density and frequency.

The systematic approach will evaluate the full extent of the mineralised system. Furthermore, this work will guide the design of future drilling programmes to test the depth extent of mineralisation.

Technical Approach

Future exploration will focus on understanding the structural controls on mineralisation, particularly the role of the Ballard Fault Zone. This geological structure may act as either a conduit for mineralising fluids or a trap for metal concentration.

Consequently, the fault zone represents a high-priority exploration target that could lead to additional discoveries. The structural interpretation will guide future exploration activities and help define drill target priorities.

Investment Thesis: Multi-Metal Critical Minerals Exposure

Western Yilgarn presents a compelling investment opportunity for several key reasons. The company's diversified critical minerals portfolio offers unique exposure to the global energy transition.

Exceptional Grade Discovery

The 2.47% cobalt and 126.25 ppm scandium oxide grades place Ida Holmes among the highest-grade critical metals discoveries in Western Australia. These cobalt grades exceed many established operations globally.

Moreover, the scandium content represents a potentially valuable by-product stream that could significantly enhance project economics. This multi-metal potential distinguishes this Western Yilgarn NL critical metals discovery from single-commodity projects.

Strategic Critical Minerals Portfolio

The company offers investors diversified exposure across bauxite (alumina), cobalt, nickel, and scandium. All these commodities are designated critical minerals essential for renewable energy and technology supply chains.

This diversification reduces single-commodity risk whilst maintaining exposure to high-growth sectors. Furthermore, the portfolio positioning aligns with global trends towards energy transition and technology advancement.

Proven Mining District

Location within an established mining region provides infrastructure advantages and de-risks future development scenarios. The presence of major operators nearby demonstrates the region's mining viability.

Additionally, this positioning provides potential partnership opportunities with existing operators. Such partnerships could accelerate development timelines and reduce capital requirements.

Resource Scale Potential

With mineralisation confirmed across 120 metres of strike and the Ballard Fault Zone presenting additional exploration upside, the discovery shows significant scale potential. The geological setting suggests considerable expansion potential beyond the current known extent.

Market Context for Critical Metals

How is the Cobalt Market Performing?

Cobalt demand is driven primarily by battery technology for electric vehicles and energy storage systems. Supply constraints from traditional sources have created opportunities for new discoveries, particularly those outside geopolitically sensitive regions.

The Democratic Republic of Congo currently dominates global cobalt supply, creating supply chain risks for technology manufacturers. Consequently, discoveries in politically stable jurisdictions like Australia command premium valuations.

Scandium Supply Shortage

Global scandium production remains extremely limited, with most supply coming from processing by-products rather than dedicated mining operations. This supply-demand imbalance creates significant value potential for primary scandium discoveries.

Current scandium prices reflect this scarcity, with oxide prices exceeding $3,000 per kilogram. However, consistent supply from dedicated operations could unlock substantial demand from aerospace and clean energy applications.

Nickel Market Position

Nickel plays a crucial role in stainless steel production and battery cathodes for electric vehicles. The ongoing energy transition is expected to drive sustained demand growth.

High-purity nickel suitable for battery applications commands premium prices compared to traditional ferronickel products. This Western Yilgarn NL critical metals discovery could potentially target these higher-value market segments.

Why Should Investors Follow Western Yilgarn?

This latest discovery reinforces Western Yilgarn's emergence as a significant ASX-listed critical minerals play. The company combines substantial established resources with high-grade discovery potential in a strategic jurisdiction.

The company's strategic focus on critical minerals positions it to benefit from the global energy transition. Furthermore, technology sector demand growth supports long-term commodity price appreciation for these metals.

Key Tracking Points for Investors

• Follow-up exploration results from expanded sampling programmes
• Structural interpretation of the Ballard Fault Zone's role in mineralisation
• Resource estimation progress as drilling programmes commence
• Strategic partnership opportunities given the critical minerals focus

The combination of exceptional discovery grades, strategic location, and diversified critical minerals exposure makes Western Yilgarn compelling. For investors seeking exposure to energy transition metals, the company represents a significant opportunity.

Risk Considerations

As with all exploration-stage projects, investors should note that further drilling and resource definition work is required. The full extent and economic viability of the mineralisation remain to be established through additional exploration.

Moreover, commodity price volatility and regulatory changes in the mining sector could impact project development timelines. Economic studies will be required to confirm commercial viability following resource definition.

Western Yilgarn has positioned itself as a major critical minerals player, with significant upside potential due to its high-grade cobalt-scandium discovery and substantial bauxite resource base. With upcoming exploration milestones throughout 2026, investors should monitor this emerging critical minerals story closely.

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