Audalia Drills 77 Holes to Upgrade Medcalf Resource Estimate
Audalia Resources has completed critical drilling programs at its Medcalf vanadium-titanium-iron project, progressing resource upgrades and mine design while managing tight cash reserves and financing arrangements.
- Completion of 49-hole RC infill drilling and 10-hole geotechnical core drilling
- Data submitted for updated Mineral Resource Estimate and mine design inputs
- Metallurgical testwork underway to support ore processing plans
- Cash reserves declined to $586,000 amid ongoing exploration expenditure
- Access to $6 million in loan facilities with repayment extended to July 2025
Medcalf Project Drilling Advances
Audalia Resources Limited (ASX – ACP) has reported significant progress at its flagship Medcalf Project in Western Australia during the June 2025 quarter. The company completed a 49-hole reverse circulation (RC) infill drilling program across the Vesuvius, Fuji, and Pinatubo prospects, totaling 1,643 metres. This was complemented by a geotechnical core drilling campaign of 10 holes, aimed at gathering critical data for mine design.
The drilling programs are designed to upgrade the existing Mineral Resource Estimate, moving inferred resources into higher confidence categories under the JORC Code. Audalia has engaged Cube Consulting to integrate the new data and deliver an updated resource estimate next quarter, a key milestone for advancing the project’s valuation and development planning.
Supporting Metallurgical and Mine Design Work
Alongside drilling, metallurgical testwork is underway at ALS Laboratories, using core samples from the geotechnical program. This work will inform ore processing strategies to produce high-grade titanium and vanadium concentrates targeted at Asian markets. Meanwhile, WML Consultants are finalizing recommendations on pit slope designs based on geotechnical data, which will feed into mining approvals and operational planning.
Financial Position and Funding Outlook
Audalia’s cash position tightened to $586,000 at quarter-end, down from $1.08 million previously, reflecting $372,000 spent on exploration and evaluation activities. Payments to related parties, including geological and engineering consulting services, amounted to $46,000. The company maintains access to $6 million in unsecured loan facilities, with repayment terms extended to July 2025, providing some financial runway.
Despite the constrained cash balance, Audalia’s management remains confident in securing additional funding as needed, citing a track record of successful capital raises and ongoing negotiations with potential offtake partners and financiers. The company continues to pursue the necessary regulatory approvals to support project development, including mining and processing permits.
Looking Ahead
The upcoming release of the updated Mineral Resource Estimate will be a critical event for investors, providing clarity on the scale and quality of the Medcalf deposit. Success in securing financing and regulatory approvals will be equally pivotal in determining the project’s trajectory toward production. Audalia’s ability to manage its cash flow and funding strategy will remain under close scrutiny as it advances these next steps.
Bottom Line?
Audalia’s drilling progress sets the stage for resource upgrades, but funding and approvals remain key hurdles ahead.
Questions in the middle?
- When will the updated Mineral Resource Estimate be released, and how materially will it differ from the current resource?
- What are the timelines and likelihood for securing the remaining regulatory approvals needed for mining and processing?
- How does Audalia plan to bridge its limited cash runway and what financing options are most likely to materialize?
