Pilgangoora’s 23% Lithium Increase Raises Questions on Future Mining Strategy
Pilbara Minerals Limited has announced a significant 2025 Mineral Resource update for its Pilgangoora Operation, increasing contained lithium oxide by 23% to 5.7 million tonnes and reinforcing its status as a global lithium powerhouse.
- 23% increase in contained lithium oxide to 5.7Mt
- 10% rise in total resource tonnage to 446Mt at 1.28% Li2O grade
- 104,672m drilling program with 364 holes completed
- Resource update incorporates depletion and revised economic extraction criteria
- Significant exploration potential remains, including untested Bridge Zone
Pilgangoora’s Resource Expansion
Pilbara Minerals Limited (ASX – PLS) has delivered a substantial Mineral Resource upgrade at its wholly owned Pilgangoora Operation in Western Australia’s Pilbara region. The 2025 update reveals a 23% increase in contained lithium oxide, now totalling 5.7 million tonnes, supported by a 10% increase in tonnage to 446 million tonnes at an improved grade of 1.28% lithium oxide (Li2O).
This enhancement is the result of an extensive 104,672-metre drilling campaign comprising 364 holes, targeting down-dip extensions over a strike length exceeding 7 kilometres. The updated resource incorporates all drilling results from the 2024 and 2025 financial years and accounts for mining depletion since June 2024.
Technical and Geological Insights
The resource estimate adheres to the Australasian JORC Code (2012 Edition) standards and reflects a refined geological interpretation. Notably, a revised Reasonable Prospects for Eventual Economic Extraction (RPEEE) assessment removed lower-grade material, contributing to a 12% uplift in overall grade from 1.15% to 1.28% Li2O. The Central Extension drill areas yielded new higher-grade mineralisation, further bolstering the resource quality.
Alongside lithium, the resource contains significant tantalum pentoxide (Ta2O5) and iron oxide (Fe2O3), with 120 million pounds of tantalum pentoxide reported. Adjustments were made to iron oxide assays to correct for contamination during drilling and sample preparation, ensuring accuracy in deleterious element estimation.
Operational and Strategic Context
Managing Director and CEO Dale Henderson emphasized that the resource upgrade consolidates Pilgangoora’s position as one of the world’s largest and highest-quality hard rock lithium assets. The operation benefits from integrated ore sorting technology commissioned in August 2024 and remains open pit mining, with potential amenability to underground methods in the future.
Despite recent cost reduction initiatives moderating exploration activities since March 2025, Pilbara Minerals highlights substantial exploration upside. The untested “Bridge Zone” between the Central and North Areas, extending approximately 2 kilometres and remaining untested below 200 metres depth, represents a key target for future drilling once market conditions improve.
Looking Ahead
Further drilling is planned to upgrade resource classifications and test extensions, underpinning Pilbara Minerals’ strategy to unlock the full potential of Pilgangoora. The company’s strong balance sheet and diversified supply chain position it well to navigate evolving lithium market dynamics and scale operations accordingly.
Bottom Line?
Pilgangoora’s resource leap sets the stage for Pilbara Minerals to deepen its global lithium leadership amid evolving market conditions.
Questions in the middle?
- How will Pilbara Minerals prioritize exploration in the untested Bridge Zone amid cost pressures?
- What impact will assay bias adjustments have on future resource and reserve estimations?
- Could underground mining become a viable option to extend Pilgangoora’s mine life?
