Samso News: West Cobar Metals — Major 263Mt Gallium Resource Defined at Salazar - Interesting Development.
- Noel Ong
- 1 hour ago
- 7 min read
Announcement
Salazar Project Delivers Major 263Mt Gallium Resource – 22 January 2026 (view the announcement)
The West Cobar Salazar story is one that has graced the pages of Samso for a long time. We have spent a lot of time talking to Matt Szwedzicki over the years and I am not surprised that the company is still able to sell the Salazar story. When I first came across Salazar, my first thought was that this is not your ordinary deposit. The quantum of metals and the variable metal content can make this into a never ending story and it looks like it making magic.
The Gallium potential, even though I am not sure how it will be told, is fascinating. The potential value proposition is very clear, there is an absolute demand vs supply deficit and then you throw the East vs. West component and you have the perfect storm. However, I am not sure if the ASX market is entirely versed on the potential value.
We all know that the market fully understand fear and the run of the bull, but in this case, I think the time required to figure this story out is simply too much while the market has several bulls running, namely, gold, silver, copper, lithium, tungsten and iron ore ( the defiance of the so call glut coming out as the Simandou iron ore project begins shipping its iron ore).
For this reason, I am very keen to follow this story as it develops because if the theoretical narrative gains traction, this will be a good ride for shareholders.
Salazar Critical Minerals Project – A Large Clay-Hosted Multi-Commodity System in WA
The Salazar Critical Minerals Project is located approximately 120km north-east of Esperance, Western Australia, and comprises the Newmont and O’Connor deposits across a large saprolite-dominated clay system (Figure 1).
Salazar is already recognised as one of Australia’s most advanced clay-hosted critical minerals projects, hosting significant rare earth, scandium, titanium dioxide, alumina, and now gallium Mineral Resources.
Figure 1: West Cobar’s tenements and neighbouring Esperance district tenure (source: WC1).
Samso continues to follow West Cobar Metals Ltd (ASX: WC1) as it builds a diversified critical minerals profile anchored by resource definition, metallurgy, and by-product optionality rather than single-commodity exposure.
This update adds a gallium Mineral Resource into an already established rare earths, scandium, titanium dioxide, and alumina system, reinforcing Salazar as a multi-product clay-hosted project with strategic relevance.
West Cobar Metals – A Major Gallium Resource Added to the Salazar Basket
Initial Inferred Gallium Mineral Resource Estimate of 263Mt at 26ppm Ga (35ppm Ga₂O₃) defined at the Salazar Critical Minerals Project using a 20ppm Ga cut-off, covering the Newmont and O’Connor deposits (Figure 2).
Figure 2: Salazar Project – tonnes of >20ppm Ga versus TREO cut-off employed (source: WC1)
Gallium resource is constrained to saprolitic clay-hosted mineralisation that sits within the existing ≥300ppm TREO rare earth envelope, supporting its classification as a potential by-product of REE and scandium extraction (Table 1).
Unweathered bedrock gallium mineralisation was excluded from the MRE, despite similar grades, due to improved leachability and economic potential within saprolitic clays (Figure 3).
Figure 3: Newmont Deposit section showing gallium distribution relative to >300ppm TREO block model (source: WC1)
Metallurgical test work indicates gallium may be recoverable alongside rare earths and scandium, with further work underway to confirm recovery and processing performance.
The gallium resource adds to Salazar’s existing multi-commodity inventory, which already includes defined Mineral Resources for rare earth elements, scandium, titanium dioxide, and alumina.
Clear potential identified to expand gallium resources at both the Newmont and O’Connor deposits through additional air-core drilling programs (Figure 4).
Figure 4: Salazar Project drill hole collar positions with reported gallium assays and magnetic amphibolite trends (source: WC1).
Additional gallium intersections recorded at regional prospects, including Glenmorangie and Talisker, highlight broader system-scale upside beyond the current MRE footprint (Figure 5).
Figure 5: Selected significant gallium intersections at the Newmont Deposit showing >300ppm TREO envelope (source: WC1).
Leadership Commentary
West Cobar Managing Director, Matt Szwedzicki, commented:
“We are pleased to report a very large initial Mineral Resource estimate for gallium as a by-product at the Newmont and O’Connor deposits in addition to rare earth elements, titanium dioxide, scandium, and alumina. Gallium is a high-value critical mineral (the current gallium oxide price 3 is circa US$284/kg), which has the potential to enhance the overall project economics.
Historical metallurgical testwork undertaken by Nagrom shows that the Salazar clays are amenable to leaching with the recovery of REEs, Sc, and Ga concentrates. Testwork demonstrates that excellent leaching recoveries are achievable at atmospheric pressure and could enable competitive extraction costs. Importantly, the unusual mineralogy points to the application of comparatively straightforward processing technologies. Metallurgical and beneficiation test work is moving ahead rapidly to develop a viable multi-product extraction pathway.
The export restrictions on gallium products imposed by China highlight the vulnerability of Western markets, with the potential for supply shortages that impact global production of computer chips and semiconductors, used in smartphones, computers, EVs, military applications, and other electronic devices.
The recent inclusion of gallium in Australia’s planned Critical Minerals Strategic Reserves is further evidence of the mineral’s importance in the current geopolitical climate. West Cobar has published JORC Resources for each of the strategic resource commodities (antimony, gallium, and rare earths) as prioritised by the Australian Government for the strategic reserve.
Near-term Milestones to Watch
The Company plans to continue advancing metallurgical and beneficiation test work to develop a viable multi-product processing flowsheet (Figure 6).
Further air-core drilling is expected to test extensions to gallium mineralisation at Newmont South, Matilda South, around O’Connor, and at the Glenmorangie and Talisker prospects.
Figure 6: Conceptual process testwork flowsheet (source: WC1).
Samso Concluding Comments
The declaration of a 263Mt gallium resource does not change Salazar overnight, but it does broaden its strategic profile. Gallium becomes another lever that could add value within a shared processing pathway.
This update does indicate that the resource is not speculative surface material. It is built on existing drilling, re-analysis, and defined geological controls.
WC1 has been consistent in framing gallium as a by-product, which is important as this approach keeps the story away from a single commodity outcome.
As further drilling and test work progress, Salazar remains a project where optionality is steadily being converted into defined inventory. For Samso, this is a clear case of watching how system understanding translates into development choices.
Market Implication - The Investor Lens
West Cobar is an ASX stories that seem to have been resilient enough to wade through the last few years and still be intact with a similar story. The Salazar deposit is morphing itself into a beast while changing colour like a chameleon as it went from a REE play to a potential Scandium and now a Gallium monster. Whatever it is, the market is still cool with its direction (Figure 7) and there does not seem to be any bull in sight.
Figure 7: West Cobar share price as of 2nd February 2026. (source: commsec).
In saying that, the low market capitalisation of West Cobar does make it attractive for leverage. A current value of just over AUD $7M is good for the putners trigger point however, we all know that in reality, that is just a number. The real value of a story is whether this could make an economical story or is it good enough for a "serious investor" to make a "hot" story for the market.
Gallium is a new commodity to the scene and I have yet to fully understand what are the matrix of numbers that will make the story sizzle. Time will tell and with some good old DYOR, hopefully, we can figure it out. The West Cobar Metals Gallium story may just be on the verge of moving, assuming the market does not turn backwards and reset itself.
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