Gallium Grades Hit 135 ppm at Leliyn, Kingsland Advances Flotation Tests

Breakthrough in Gallium Mineralisation at Leliyn

Kingsland Minerals Ltd (ASX, KNG) has announced a significant advancement in its Leliyn Graphite Project located in the Northern Territory. Recent metallurgical testing conducted by CSIRO has pinpointed muscovite mica as the primary mineral host for gallium, with impressive concentrations reaching up to 135 parts per million (ppm) gallium. Biotite mica also hosts gallium, albeit to a lesser extent.

This discovery is pivotal because gallium is a critical metal used extensively in advanced electronics, optical devices, and military applications. Unlike graphite, gallium is not mined directly but is typically recovered as a by-product from other ores. Identifying a viable source within the Leliyn deposit could add substantial value to the project.

Flotation Test Work and By-product Potential

Building on these findings, Kingsland has initiated flotation test work at Independent Metallurgical Operations (IMO) in Perth to isolate a mica concentrate enriched in gallium. The process involves preferentially floating muscovite and biotite mica from material already processed for graphite extraction. If successful, this could lead to the production of a gallium concentrate, which would then be assessed for gallium extraction viability.

Managing Director Richard Maddocks emphasised the strategic importance of this development, stating that producing gallium as a by-product could materially enhance the economics of the Leliyn project. However, he also noted that gallium production is not currently included in the ongoing graphite scoping study, which is expected to be completed later this quarter.

Market Context and Strategic Timing

The timing of this breakthrough is particularly relevant given the tightening global gallium supply. China, which accounts for approximately 99% of global gallium production, imposed an export ban on gallium to the United States in late 2024. This has triggered a surge in gallium prices, which now stand at around USD 1,089 per kilogram (AUD 1,670/kg), reflecting a near 250% increase over the past five years.

Gallium’s critical role in semiconductors, 5G technology, solar panels, and LED lighting underscores the urgency for alternative supply sources. Kingsland’s Leliyn project could emerge as a strategic supplier, helping to diversify the market and reduce reliance on Chinese exports.

Exploration Target and Resource Development

Kingsland has already established an Exploration Target for gallium at Leliyn, estimating contained gallium oxide (Ga₂O₃) between 3,800 and 4,875 tonnes within 190 to 195 million tonnes of host rock. While this target remains conceptual and requires further drilling and evaluation, the company plans to publish a maiden gallium JORC Resource later in 2025.

The Leliyn deposit itself is one of Australia’s most significant graphite resources, with an Indicated Mineral Resource of 12.3 million tonnes at 7.9% total graphitic carbon and an Inferred Mineral Resource of 180.2 million tonnes at 7.2% TGC. The addition of gallium as a by-product could substantially improve project viability and investor appeal.

Next Steps and Industry Implications

Further metallurgical test work will focus on refining the flotation process and assessing the economic feasibility of gallium extraction from the mica concentrate. Should these tests prove successful, Kingsland may incorporate additional flotation cells into future processing designs at Leliyn.

Meanwhile, the graphite scoping study continues independently, with results expected this quarter. Investors and industry watchers will be keen to see how gallium production could be integrated into the project’s broader development plan.