Kingsland Minerals (ASX:KNG) advances metallurgical test work at Leliyn Graphite Project with ootential for rutile and gallium by-products

Kingsland Minerals Ltd (ASX:KNG) is pleased to provide further insight into the company’s latest developments at its flagship Leliyn Graphite Project in the Northern Territory.

While the primary focus remains on progressing the scoping study for graphite concentrate production, recent drilling and assay results have confirmed the presence of elevated levels of rutile and gallium within the same graphitic schists.

This has opened the door to additional metallurgical test work aimed at assessing whether these critical minerals can be recovered as valuable by-products.

In this Q&A, Kingsland Managing Director Richard Maddocks answers key questions from investors, explaining the significance of this work, the potential scale of the opportunity, and the company’s next steps as it advances the Leliyn project.

What is the significance of the rutile and gallium test work for Kingsland Minerals?

The metallurgical test work underway is an important step in evaluating whether we can extract additional value from the same material we are processing for graphite concentrate.

Through our drilling programs, we identified consistent levels of titanium and gallium within the graphitic schist.

This led us to commence test work with Independent Metallurgical Operations in Perth, focusing on rutile recovery, and to collaborate with the CSIRO to better understand gallium distribution within the rock.

“During the drilling of the Leliyn Graphite Deposit, elevated levels of gallium and titanium were noted. Subsequent metallurgical test-work focussing on graphite concentration revealed the presence of titanium in the form of rutile (TiO₂), and gallium in the graphite flotation tails stream.”

This work allows us to assess whether rutile and gallium could be recovered economically alongside graphite in future phases of the project, potentially enhancing the value of the Leliyn operation without changing our immediate graphite focused development pathway.

Can you explain the potential scale of the gallium and rutile exploration targets at Leliyn?

The Exploration Targets we have defined are based on an extensive dataset generated through drilling programs conducted over the past two years.

For gallium, the Exploration Target is between 190 million and 195 million tonnes at grades ranging from 20 to 25 parts per million gallium oxide.

For rutile, the target is of similar scale, with grades ranging from 0.3 to 0.5 percent titanium dioxide.

These targets are conceptual in nature, and while we have strong geological support from over 6,800 assay determinations for both gallium and titanium, a Mineral Resource for either mineral has not yet been declared.

Our focus now is to determine through metallurgical test work whether viable extraction processes can be developed, which would allow us to evaluate the potential economic contribution of these by-products.

“Work has now commenced to assess the viability of concentrating, and ultimately extracting, gallium and rutile. The Leliyn graphite concentrate scoping study is progressing well with completion expected in this quarter.”

We are working closely with the CSIRO, who are conducting detailed mineralogical and geochemical studies to understand how gallium occurs within the Leliyn graphitic schists.

Using advanced techniques such as laser ablation inductively coupled plasma mass spectrometry, the CSIRO is helping us identify the specific mineral phases that host gallium.

This work is essential because gallium is typically present in very fine concentrations, and understanding its mineralogy is key to determining whether it can be concentrated and extracted efficiently.

The outcome of this study will help guide future metallurgical test work and inform whether gallium can become part of a multi-commodity production strategy at Leliyn.

The graphite scoping study is well advanced and is on track for completion in the current quarter.

This study is focused solely on the production of graphite concentrate, and all technical and financial modelling is based on graphite alone and at this stage, rutile and gallium are not included in the economic evaluation.

“It should be noted that rutile and gallium production will not be considered in the Leliyn scoping study.”

The decision to exclude by-products from the current study reflects our disciplined approach to project development.

We are ensuring that any additional value from gallium and rutile is only considered once we have robust metallurgical data to support their recovery.

The presence of gallium and rutile at Leliyn positions Kingsland well within the context of the growing global demand for critical minerals.

Both commodities are essential to sectors such as electronics, defence, aerospace, and high-performance manufacturing.

Gallium is currently priced around US dollars one thousand and forty four per kilogram, while rutile is valued at approximately US dollars one thousand six hundred and thirty five per tonne.

Our core strategy is to bring the Leliyn Graphite Project into production, but the identification of these by-products offers the potential to enhance the long-term value of the project, particularly as countries seek to reduce reliance on dominant suppliers of critical minerals.

“The high prices and very strong demand for gallium and rutile highlights the potentially substantial additional revenue which could flow from by-products of these critical metals at Leliyn.”

As we advance the project, we will continue to carefully evaluate these opportunities in parallel with our graphite-focused development.

Unlocking Multi-Commodity Value at Leliyn

Kingsland Minerals remains committed to delivering long-term shareholder value through the staged development of the Leliyn Graphite Project.

With the graphite scoping study nearing completion and metallurgical test work on rutile and gallium progressing, the company is well positioned to assess the potential for future multi-commodity production.

Through partnerships with leading technical experts and a careful approach to project evaluation, Kingsland is building a solid foundation for growth in the critical minerals sector.

We look forward to keeping shareholders informed as further results emerge and as we move closer to realising the full potential of the Leliyn Project.

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