Gallium Intervals Exceed 100ppm at NIMY’s Block 3 East Prospect

NIMY’s Breakthrough in Gallium Exploration

NIMY Resources Limited (ASX:NIM) has announced compelling drilling results from its Block 3 East gallium prospect in Western Australia, revealing some of the highest-grade gallium intervals recorded in Australia to date. The company’s recent drilling campaign returned multiple intervals exceeding 100ppm Ga2O3, including a standout 72-meter section averaging 117ppm Ga2O3, with peak values reaching as high as 495ppm Ga2O3 in individual meters.

These results underscore NIMY’s position as an early mover in a critical metals market that is rapidly gaining strategic importance globally. The company is advancing towards a JORC-compliant exploration target estimate, expected by late January 2025, which will provide a clearer picture of the resource scale and potential economic viability.

Gallium’s Rising Strategic and Market Significance

Gallium is increasingly recognised as a critical metal essential for next-generation technologies. Its unique properties make it indispensable in semiconductor manufacturing, 5G telecommunications, green energy solutions, and advanced defense systems. Notably, gallium nitride (GaN) semiconductors are pivotal in powering efficient, high-performance chips used in AI, data centers, and electric vehicles.

The global gallium market is projected to expand dramatically, from an estimated USD 2.45 billion in 2024 to over USD 21.5 billion by 2034, reflecting a compound annual growth rate of approximately 24.3%. This surge is driven by escalating demand in semiconductor industries and supply constraints, particularly due to China’s dominant position controlling 98% of global production and recent export restrictions impacting availability.

NIMY’s Strategic Position and Market Pathways

Situated in the Tier 1 mining jurisdiction of Western Australia, NIMY’s Block 3 East prospect benefits from a substantial target area of approximately 3km by 1.5km, with soil sampling revealing widespread anomalous gallium concentrations. The company is actively engaged in discussions with third parties to secure offtake agreements and establish robust demand chain linkages, aiming to capitalise on the tightening global supply landscape.

With a reliable and experienced board and technical team, including exploration manager Fergus Jockel and managing director Luke Hampson, NIMY is well-positioned to advance its project through exploration and into potential production phases. The company’s focus on high-grade intervals and strategic partnerships could enable it to fill a critical supply gap in the gallium market, which currently lacks stand-alone high-grade mining sources outside China.

Broader Industry Momentum and Technological Drivers

Recent technological breakthroughs, such as Infineon’s advancements in gallium nitride chip production and Nvidia’s adoption of gallium-based liquid metal thermal interfaces, highlight gallium’s growing role in cutting-edge electronics. These developments reinforce the metal’s importance in reducing costs and enhancing performance in semiconductors, further driving demand.

Given the geopolitical tensions and supply chain vulnerabilities surrounding gallium, NIMY’s discovery and development efforts could not be more timely. The company’s progress will be closely watched by investors and industry stakeholders seeking exposure to this critical mineral sector.