Northern Minerals Boosts Browns Range with 15% Resource Growth and $28M Capital Raise
Northern Minerals reports a 15% increase in its Wolverine Deposit resource and secures $28 million in funding, advancing its Browns Range heavy rare earths project amid ongoing feasibility studies.
- Updated Wolverine Mineral Resource Estimate up 15% in contained metals
- Successful $28.45 million capital raising via placement and share purchase plan
- Feasibility Study incorporating new resource data and metallurgical test work underway
- Zero recordable injuries maintained, reflecting strong safety culture
- Exploration drilling commenced at Dazzler Deposit under government co-funding
Resource Upgrade Signals Growing Potential
Northern Minerals Limited (ASX: NTU) has delivered a significant boost to its Browns Range Heavy Rare Earths Project with an updated Mineral Resource Estimate (MRE) for the flagship Wolverine Deposit. The new MRE, announced post-quarter end, shows a 15% increase in contained rare earth oxides to 70,500 tonnes, underpinned by a 13% rise in tonnage to 7.3 million tonnes at 0.96% TREO (Total Rare Earth Oxides). Notably, the Measured and Indicated Resources have surged by 75% in contained metal tonnes, enhancing confidence in the deposit’s scale and grade.
This upgrade is the culmination of extensive drilling programs totaling over 23,000 metres, reflecting Northern Minerals’ commitment to underpinning a robust resource base for commercial-scale mining. The enhanced resource will form a critical input to the ongoing Feasibility Study, shaping mine planning and production scheduling.
Advancing Feasibility and Project Optimisation
The company is progressing its Feasibility Study with a focus on integrating the updated resource data alongside recent metallurgical test work that confirms consistent ore processing performance across variable lithologies. Independent technical consultant SRK has completed an interim review, providing recommendations that Northern Minerals is incorporating into the study.
Capital and operating expenditure estimates have been updated to reflect current market conditions and contracting strategies, with a project optimisation process underway targeting cost efficiencies across mining, processing, infrastructure, and logistics. While these efforts are positive, the timeline for completing the Feasibility Study has been extended into the fourth quarter of FY25, delaying final investment decisions and funding arrangements.
Strong Financial Position and Community Engagement
Financially, Northern Minerals strengthened its position by successfully completing a $3.85 million Share Purchase Plan and receiving $24.7 million from the second tranche of a $43 million placement, both at $0.019 per share. This capital injection supports ongoing development activities and exploration programs.
On the social and environmental front, the company maintained a flawless safety record with zero recordable injuries, sustaining a TRIFR of 0.00 since November 2022. Environmental surveys for an alternative wet-season access road in the Northern Territory indicate minimal ecological impact, aligning with Northern Minerals’ commitment to responsible development. Engagement with local Traditional Owner communities continues, fostering positive relationships and cultural respect.
Exploration Momentum and Government Support
Exploration activities advanced with a regional target generation program leveraging new geophysical data and litho-structural interpretations. Notably, drilling commenced at the Dazzler Deposit under the Western Australian Government’s Exploration Incentive Scheme, aiming to unlock further heavy rare earth and copper mineralisation potential within the Browns Range portfolio.
Additional fieldwork at the John Galt copper prospect and other tenements continues to expand Northern Minerals’ strategic footprint in the East Kimberley region.
Bottom Line?
With resource growth and capital secured, Northern Minerals is poised to refine Browns Range’s development pathway, though investors should watch for Feasibility Study completion delays impacting funding timelines.
Questions in the middle?
- How will the delayed Feasibility Study affect Northern Minerals’ final investment decision and project financing?
- What cost-saving initiatives from the optimisation process will materially impact Browns Range’s economics?
- Can exploration success at Dazzler and John Galt extend Browns Range’s mine life or diversify its resource base?
