How Octava’s Bioleaching Breakthrough and Federation Deal Could Reshape Its Future
Octava Minerals has secured a conditional acquisition of the Federation copper-zinc project in Tasmania and reported promising bioleaching results at its Byro rare earths and lithium project, underpinning plans for further exploration and development.
- Binding conditional agreement to acquire 100% of Federation Cu-Zn-Ag-Sn Project
- Strong $1.5 million placement to fund exploration and metallurgical testwork
- Excellent bioleaching recoveries for rare earths and lithium at Byro from CSIRO and BiotaTec
- Upcoming EM surveys and diamond drilling planned at Federation’s Sweeney’s prospect
- Maiden drill program and scale-up bioleaching tests planned for Byro
Strategic Acquisition in Tasmania
Octava Minerals Limited (ASX, OCT) has taken a significant step forward by signing a binding conditional agreement to acquire 100% of Magnes 25 Pty Ltd, the holder of the Federation copper-zinc-silver-tin project in Western Tasmania. This acquisition positions Octava to tap into a historically promising mineral province near Zeehan, with previous drilling at the Sweeney’s prospect revealing substantial copper, zinc, silver, and tin intersections.
Despite exploration dating back to the late 1970s, the Federation project remains underexplored by modern standards. Octava plans to deploy electromagnetic (EM) geophysical surveys and diamond drilling to better delineate the mineralised zones, aiming to unlock the full potential of this semi-massive to massive sulphide system.
Capital Raising to Fuel Growth
Supporting its growth ambitions, Octava successfully raised $1.5 million through a placement to sophisticated investors, priced at a 25% discount to the last closing share price. The funds will primarily support exploration and due diligence at Federation, ongoing metallurgical testwork at the Byro project, and general working capital. The company ended the quarter with a healthy cash position of $1.84 million and no debt, providing a solid financial foundation for upcoming activities.
Breakthrough Bioleaching Results at Byro
Octava’s Byro project in Western Australia, targeting rare earth elements (REEs) and lithium, has delivered encouraging metallurgical test results. Independent bioleaching programs conducted by CSIRO and European biomining specialist BiotaTec demonstrated excellent extraction rates for critical elements such as neodymium, praseodymium, dysprosium, and lithium. Recovery rates of up to 75% for key REEs and around 40% for lithium and vanadium highlight the potential for environmentally sustainable and cost-effective extraction methods.
Bioleaching, which uses microorganisms to extract metals from ores, offers a greener alternative to traditional chemical processing. Octava is now advancing plans to scale up bioheap leaching operations and is preparing for a maiden drilling program to target higher-grade zones within the Byro deposit.
Other Project Updates and Outlook
While the Yallalong antimony project and East Kimberley nickel and platinum group metals projects saw limited activity this quarter, Octava continues to identify new targets and seek partnerships to advance these assets. The company’s focus remains firmly on Federation and Byro, where the combination of strategic acquisitions, innovative processing techniques, and planned drilling programs could unlock significant value.
Managing Director Bevan Wakelam expressed optimism about the quarter’s progress, noting the dual validation of bioleaching results and the readiness to commence exploration at Federation. The company is navigating regulatory and shareholder approvals for its acquisitions and capital raising, with further updates anticipated as these processes advance.
Bottom Line?
Octava’s blend of strategic acquisitions and cutting-edge bioleaching technology sets the stage for a pivotal phase of exploration and development in critical minerals.
Questions in the middle?
- How will Octava’s upcoming drilling at Federation redefine the project’s resource potential?
- Can bioheap leaching at Byro be scaled efficiently to commercial production levels?
- What impact will shareholder and regulatory approvals have on the timing of Octava’s planned activities?
