NewsStocksWest Cobar Metals Accelerates Scandium Development at Salazar Project in Western Australia

West Cobar Metals Accelerates Scandium Development at Salazar Project in Western Australia

Author: The Market Online Australia·

Key Takeaways

  • West Cobar Metals reported scandium extraction of up to 39% in recent bioleaching screening testwork under atmospheric conditions at its Salazar project, building on earlier acid leaching recoveries of up to 81%.
  • The company is planning Salazar's first drill program specifically targeting scandium at the Newmont deposit, with aircore drilling targeted to commence in Q4 2026 pending approvals.
  • Managing Director Matt Szwedzicki indicated that atmospheric-pressure processing routes could provide capital and operating cost advantages compared to the higher-cost high-pressure and high-temperature methods used at many global scandium projects.
  • Scandium is classified as a critical mineral by Australia, the United States, and the European Union due to concentrated global supply and its importance to defence, aerospace, advanced alloys, fuel cells, and semiconductor technologies.
  • The recent US$400 million conditional debt funding commitment from the US Government's Office of Strategic Capital to Sunrise Energy Metals highlights growing strategic investment in securing Western scandium supply chains.
West Cobar Metals Accelerates Scandium Development at Salazar Project in Western Australia

West Cobar Metals (ASX:WC1) is accelerating scandium-focused work programs at its Salazar critical minerals project in southern Western Australia, driven by encouraging bioleaching testwork results and growing global demand for the high-value critical mineral. Scandium is listed as a critical mineral by Australia, the United States, and the European Union, reflecting concentrated global supply and few primary production sources.

Recent bioleaching screening testwork on mineralisation from the Salazar project achieved scandium extraction of up to 39% under atmospheric conditions. Earlier metallurgical testwork had achieved scandium recoveries of up to 81% using atmospheric-pressure acid leaching.

Managing Director Matt Szwedzicki said these preliminary results support continued evaluation of atmospheric-pressure processing routes, which could offer cost advantages over conventional methods.

"Many scandium projects globally rely on higher-cost high-pressure and high-temperature processing routes. Salazar's shallow saprolite-hosted mineralisation and atmospheric leach characteristics may provide processing and capital cost advantages. Further testwork and development studies are required to assess flowsheet performance, recoveries, costs and project economics," Mr Szwedzicki said.

The company is advancing metallurgical testwork and planning an integrated flowsheet demonstration program to evaluate scandium recovery alongside potential rare earth by-products.

"We are excited to be rapidly progressing towards Salazar's first drill program specifically targeting scandium. The program will test higher-grade zones within the Newmont deposit and provide data to support a potential Mineral Resource update," Mr Szwedzicki said.

"Approvals processes are progressing, with aircore drilling targeted to commence in Q4 2026."

International attention on scandium is intensifying as tightening Chinese export controls reinforce the strategic importance of secure Western supply chains. Scandium is critical for defence, aerospace, advanced aluminium alloys, solid oxide fuel cells, and semiconductor technologies.

Mr Szwedzicki pointed to the recently announced US$400 million conditional debt funding from the US Government's Department of War's Office of Strategic Capital (OSC) to Sunrise Energy Metals Limited (ASX:SRL) as evidence of the strategic priority placed on secure scandium supply chains.

"The timing for accelerating efforts to develop a scandium project could not be better," he said.

West Cobar recently completed a detailed review of the Salazar scandium mineralisation, demonstrating its spatial association with the weathered magnetic amphibolite horizon that also influences the distribution of heavy rare earth elements and titanium dioxide.

"We are driving hard on the scandium front and expect these activities to generate a strong pipeline of newsflow over the coming months," Mr Szwedzicki told shareholders.

WC1 shares were steady at 1.6¢ with a market capitalisation of $6.654 million.