Morella Advances Lithium Exploration with New Drill Targets and Funding Boost

Exploration Momentum Builds at Mt Edon

Morella Corporation Limited (ASX: 1MC) has reported a productive March 2025 quarter, advancing its lithium and rubidium exploration efforts primarily at the Mt Edon Project in Western Australia. The company has refined drill targets at the Sophie Pegmatite following a comprehensive desktop review and detailed outcrop mapping. These preparations set the stage for a planned resource definition drilling program, aiming to better delineate the promising mineralisation discovered in 2024.

The Mt Edon Project, situated near Paynes Find, benefits from proximity to the recently announced world-class rubidium resource by Everest Metals Ltd, underscoring the district’s growing strategic importance beyond its gold legacy. Morella’s 2024 drilling intercepted pegmatite in 15 of 17 holes, all returning rubidium mineralisation above 0.05% Rb2O, with the Sophie Pegmatite showing a notable increase in mineralised volume.

Expanding Lithium Footprint at Mallina

At the Mallina Project, located southwest of Port Hedland, Morella confirmed lithium mineralisation at Pegmatite 2 over a 1-kilometre strike length, with the deposit remaining open both along strike and at depth. Drilling has yielded intercepts up to 20 metres at 1.12% Li2O, highlighting the target’s potential as a significant lithium source. The company plans to initiate a ground gravity survey to identify concealed pegmatite bodies, with funding support sought through the Western Australian government’s Co-funded Geophysics Program.

New Targets Identified at West Wodgina

Morella’s West Wodgina Project, adjacent to the world-class Wodgina Lithium Operation, has seen the identification of multiple new exploration targets through integrated soil and rock chip sampling combined with airborne geophysical data. A site visit is planned in the coming quarter to refine geological understanding and prepare for potential drilling campaigns, further expanding Morella’s lithium exploration footprint in a highly prospective region.

Corporate and Financial Position

On the corporate front, Morella completed a share placement in December 2024, raising approximately A$1.4 million, with the Board subscribing for nearly half of this amount to demonstrate confidence in the company’s prospects. An Extraordinary General Meeting scheduled for May 2025 will seek shareholder approval to ratify the placement and authorize the issuance of shares to Directors as partial fee payment, a move aimed at preserving cash for exploration activities.

Financially, the company reported operating cash outflows of A$359,000 for the quarter and ended with cash reserves of A$749,000. Morella also maintains an unsecured financing facility of A$3.593 million, providing additional liquidity. The Board remains confident in securing further capital as needed, supported by a track record of successful funding rounds and the ability to adjust exploration expenditure to manage cash flow.

Looking Ahead

Morella’s strategic focus on advancing resource definition drilling at Mt Edon’s Sophie Pegmatite, extending lithium mineralisation at Mallina, and exploring new targets at West Wodgina positions the company well to capitalize on growing demand for battery minerals. Upcoming milestones include the heritage survey at Mt Edon, the proposed ground gravity survey at Mallina, and the shareholder meeting outcomes, all of which will be critical in shaping Morella’s near-term development trajectory.