Ironclad JV Deal: Can Neometals De-Risk Gold Production in 2026?

Strategic Partnership for Ironclad Development

Neometals Ltd (ASX – NMT) has taken a significant step towards commercialising its Ironclad Gold Deposit within the Barrambie Gold Project by signing a non-binding Letter of Intent (LOI) with Kalgoorlie-based mining contractor BML Ventures Pty Ltd. This agreement sets the stage for exclusive negotiations over the next 90 days to establish a production joint venture focused on open-cut mining operations.

BML Ventures brings a proven track record in funding and operating open-pit gold mines, leveraging a low-cost owner/operator fleet and strong local toll milling relationships. Under the proposed arrangement, BML Ventures will finance and manage mining and haulage, while profits will be shared equally with Neometals after cost recovery. This structure aims to de-risk development and accelerate the pathway to early production.

Resource and Exploration Context

The Ironclad Deposit currently hosts an Inferred Mineral Resource of approximately 250,000 tonnes grading 1.6 grams per tonne gold, equating to around 13,000 ounces above a 0.5 g/t cut-off. This resource is supported by recent and historical drilling, including 42 infill and extension reverse circulation holes completed in 2025, with assay results expected in January 2026. An updated Mineral Resource Estimate (MRE) and mine plan are targeted for completion during the exclusivity period, providing a clearer picture of the deposit’s commercial potential.

Neometals’ Managing Director, Chris Reed, expressed confidence in the partnership, highlighting BML’s technical expertise and operational capabilities as key to unlocking Ironclad’s value. He noted that the collaboration offers a fully funded, low-risk route to early production, aligning with Neometals’ broader growth strategy for the Barrambie Project.

Barrambie Project’s Broader Potential

The Ironclad Deposit is situated within the Barrambie Gold Project, a 505 square kilometre tenure in Western Australia’s Murchison Gold Belt. While historically known for high-grade gold production, modern exploration has been limited until Neometals resumed activity in 2024. The company has outlined an Exploration Target of 8 to 10.5 million tonnes at grades between 1.3 and 2.3 g/t gold, implying a potential 335,000 to 775,000 ounces of gold across the project area.

This renewed focus on Barrambie’s gold potential complements Neometals’ existing portfolio, which includes one of the world’s highest-grade titanium deposits and lithium chemical processing technologies. The Ironclad JV represents a tangible step towards monetising the gold assets while maintaining a diversified strategic outlook.

Next Steps and Market Implications

During the 90-day exclusivity period, both parties will conduct due diligence, finalise the updated MRE and mine plan, and negotiate definitive agreements. The LOI remains non-binding except for exclusivity and confidentiality clauses, leaving room for adjustments based on findings. Investors should watch for updates on resource upgrades, assay results, and the finalisation of the joint venture terms, which will be material to Neometals’ near-term production outlook and valuation.