Shares in WA1 Resources Ltd (ASX: WA1) are trading lower in mid-afternoon trade. This comes after the company released a new drilling update from its flagship Luni Niobium Project.
At the time of writing, the WA1 share price is down 1.26% to $17.27. The stock opened in the green but has since seesawed and slipped modestly into the red.
Let's take a closer look at what the company announced to the ASX.
Image source: Getty Images
Infill program lifts confidence in indicated resource
According to the release, WA1 said infill drilling at Luni continues to deliver strong niobium grades. The latest holes include new intersections located immediately next to the existing western indicated mineral resource estimate.
Some of the standout results were:
- 13.7 metres at 2.8% Nb2O5 from 54 metres
- 6.5 metres at 6.6% Nb2O5 from 56.5 metres
- 8.2 metres at 3.2% Nb2O5 from 152 metres
- 13.1 metres at 2.8% Nb2O5 from 143.9 metres
- 22 metres at 2.4% Nb2O5 from 67 metres
- 93.1 metres at 2.1% Nb2O5 from 67.8 metres
Drilling in the eastern indicated area also returned strong results, including 25.3 metres at 3% Nb2O5 and 12.4 metres at 6.1% Nb2O5.
Management said these results could allow more high-grade material to be upgraded into higher confidence categories. A revised mineral resource estimate is expected in the June quarter.
Resource update in focus
WA1 carried out a large drilling program at Luni in 2025 using both diamond and air core rigs. Since the project was discovered, about 85,000 metres have now been drilled, with more assay results still to come.
The diamond drilling has been aimed at better defining the existing mineral resource and increasing confidence in it. Infill holes were mostly drilled on a 50 metre by 50 metre grid in the eastern indicated area and a 100 metre by 100 metre grid in the western inferred area.
WA1 said the latest results show the high-grade mineralisation is consistent and help define its shape, thickness, and grade. More drilling and metallurgical test work is still underway as the company continues its development studies.
About WA1 Resources
WA1 Resources is an S&P/ASX 300 Index (ASX: XKO) company that explores and develops mineral projects in Western Australia and the Northern Territory. Its main project is the Luni Niobium Project, which forms part of the wider West Arunta region.
WA1 has a market capitalisation of about $1.3 billion and roughly 74.3 million shares on issue. Over the past 12 months, the share price has risen around 30%, showing strong investor interest in niobium discoveries in the West Arunta area.
Despite today's volatility, attention is expected to remain on the next resource update and upcoming drilling results.
