Western Yilgarn’s Cardea 3 Deal Hinges on Licence Grant Amid Market Demand

Strategic Expansion in Darling Range

Western Yilgarn NL (ASX – WYX) has announced a binding agreement to acquire the Cardea 3 Bauxite Project, a 5.86 square kilometre exploration licence application located approximately 17.5 kilometres east of its existing Julimar Bauxite Project in Western Australia's prolific Darling Range Bauxite Field. This acquisition marks a significant expansion of the company's mineral footprint in a region renowned for its high-quality bauxite deposits.

The Cardea 3 Project is notable for its extensive historical exploration, including 422 vacuum drillholes that have delineated a surface bauxite mineralisation zone measuring roughly 3 kilometres by 1 kilometre. Assay results indicate high-grade bauxite with available alumina (Al₂O₃) exceeding 34.5% and reactive silica (SiO₂) averaging 3.14%. These figures are competitive with grades reported by South32’s Worsley Operations, a nearby established mining operation, underscoring Cardea 3’s potential as a supplier of premium direct shipping ore (DSO) bauxite.

Transaction Details and Consideration

The acquisition consideration involves an initial non-refundable cash deposit of $5,000, followed by a further $20,000 cash payment and the issuance of $25,000 worth of fully paid ordinary shares in Western Yilgarn. The share issue price is based on the 20-day volume weighted average price (VWAP) prior to the agreement date. These payments are contingent upon the successful grant of the exploration licence application E70/6727, which is currently pending with the Western Australian Mines Department.

Western Yilgarn’s Non-Executive Director, Pedro Kastellorizos, highlighted the strategic value of the acquisition, noting the project's proximity to key infrastructure such as the Millendon Junction Railway Line, major ports, and Perth. This logistical advantage positions the company well to capitalise on the growing global demand for high-quality DSO bauxite, which is critical for aluminium production.

Geological Context and Exploration Outlook

The Cardea 3 deposit exhibits a typical Darling Range laterite profile, with mineralisation hosted in flat-lying tabular bodies over granitic and gneissic basement rocks of the Yilgarn Craton. The bauxite profile includes a duricrust layer and a friable fragmental zone, both key ore zones in the region. Historical drilling data, supported by detailed JORC-compliant assay results, confirm the continuity and quality of the mineralisation.

Western Yilgarn plans to undertake further systematic exploration, including targeted drilling to test lateral and depth extensions once the exploration licence is granted. The company’s technical team, supported by independent consultants, has reviewed the extensive historical data and identified multiple prospective targets within the tenure.

Positioning for Market Growth

The acquisition complements Western Yilgarn’s existing Julimar Bauxite Project, which boasts a substantial inferred resource of 168 million tonnes at 36.1% total alumina. By integrating Cardea 3’s high-grade mineralisation, the company enhances its resource base and strengthens its position in the Western Australian bauxite sector. Given the strategic location and quality of the resource, Western Yilgarn is well placed to respond to the sustained demand for bauxite in global aluminium markets.

While the exploration licence grant and subsequent development remain subject to regulatory approvals and market conditions, the Cardea 3 acquisition represents a clear step forward in Western Yilgarn’s growth strategy. The company’s commitment to rigorous exploration and resource definition will be critical in unlocking the project’s full potential.