Funding Crunch Looms as Audalia Pushes Medcalf Project Forward
Audalia Resources completed key drilling and metallurgical programs at its Medcalf vanadium-titanium-iron project, progressing towards a resource upgrade and mine design. However, cash reserves and funding runway remain limited, underscoring the need for successful financing.
- Completion of 77 drill holes totaling 2,589m for Mineral Resource upgrade
- Geotechnical core drilling finished to inform mine design
- Metallurgical testwork underway to define ore processing parameters
- Cash balance at $602,000 with exploration expenditure of $464,000 in the quarter
- Access to $6 million in loan facilities but funding runway estimated at 1.2 quarters
Medcalf Project Drilling Progress
Audalia Resources Limited (ASX – ACP) has reported significant progress at its Medcalf Project in Western Australia during the September 2025 quarter. The company completed a comprehensive reverse circulation (RC) infill drilling program comprising 49 holes for 1,643 meters at the Vesuvius, Fuji, and Pinatubo prospects. Combined with earlier drilling at the Egmont prospect, a total of 77 holes covering 2,589 meters have been drilled to support an upgrade of the Mineral Resource estimate. These efforts aim to convert inferred resources into higher confidence categories, a critical step towards project development.
Alongside the RC drilling, a geotechnical core drilling program was conducted with 10 PQ core holes totaling 525.7 meters. This program, designed by WML Consultants, is intended to provide essential data for mine design, particularly regarding pit slope stability, which will feed into mining approvals and operational planning.
Metallurgical Testwork and Regulatory Progress
Complementing the drilling activities, metallurgical testwork is underway at ALS Laboratories, focusing on processing characteristics of the core samples. This work is crucial to defining the beneficiation process to produce high-grade titanium and vanadium concentrates targeted at Asian markets. The company is concurrently advancing regulatory approvals and permits necessary for mining, crushing, and screening operations, signaling a multi-faceted approach to project advancement.
Financial Position and Funding Outlook
Financially, Audalia reported a cash balance of $602,000 at quarter-end, slightly up from $586,000 in the previous quarter. Exploration and evaluation expenditure amounted to $464,000 during the period, reflecting the intensive drilling and testwork programs. The company has access to $6 million in loan facilities, including related party loans, but with current expenditure levels, the available funding is estimated to sustain operations for approximately 1.2 quarters.
Management acknowledges the tight cash position and continues to explore funding alternatives, including negotiations with potential offtake partners and financiers. Past success in securing capital provides some confidence, but the limited runway underscores the urgency of securing additional financing to maintain momentum.
Looking Ahead
The next quarter will be pivotal as assay results from the recent drilling are awaited to finalize the updated Mineral Resource estimate. This update will inform further project development decisions and support ongoing discussions with stakeholders. The company’s ability to secure regulatory approvals and financing will be closely watched by investors, as these factors will determine the pace and scale of Medcalf’s advancement.
Bottom Line?
Audalia’s drilling and testwork progress lays groundwork for resource upgrade, but funding constraints pose a critical near-term challenge.
Questions in the middle?
- When will assay results be released, and how might they impact the resource upgrade?
- What is the timeline and likelihood for securing necessary regulatory approvals?
- How will Audalia address its limited funding runway to sustain project development?
