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Hawk Resources Signs Agreement for Mineral Exploration at Olympus Scandium Project

• HWK signs Olympus exploration deal with Ngaanyatjarra.

• Earn-in up to 80% on 309 km2 Olympus licences.

• Scandium: rare, critical metal for tech.

Hawk Resources (ASX: HWK) has executed an agreement with Ngaanyatjarrra traditional owners and native title holders covering mineral exploration activities over the Olympus scandium project in Western Australia.

The agreement follows three months of engagement with the Ngaanyatjarra Council, which Hawk said had been “both proactive and supportive” throughout the negotiation process.

Hawk has since initiated procedures for obtaining consent from the WA government’s indigenous affairs and mining and petroleum departments.

The company plans to schedule a cultural heritage survey to provide clearance for a planned exploration program.

Subject to ministerial consent, Hawk expects on-ground exploration to commence by mid-year.

Earn-In Acquisition

Hawk recently acquired an option to earn up to 80% of the Olympus project, which consists of two exploration licences over 309 square kilometres.

The area is characterised by flat topography covered by calcrete, calcareous gravels and aeolian sands.

It was explored for copper, nickel, cobalt, gold, and platinum group elements by previous owner Redstone Resources (ASX: RDS) in the early 2000s.

A review of historical portable x-ray fluorescence analyses of soil, lag, and rotary air blast samples identified a 4 kilometre x 7km scandium soil anomaly with grades up to 1,284 parts per million and peak assays of 2,164ppm scandium over 1m sample intervals.

Agreement Ahead of Schedule

Managing director Scott Caithness said the mineral exploration agreement had been achieved faster than expected.

“Obtaining an agreement for mineral exploration over Olympus after only three months of negotiations marks a major milestone for Hawk,” he said.

“The on-country meeting that entailed an introduction to Hawk and a presentation on our planned exploration was positively received by the traditional owners.”

“Importantly, that meeting also enabled our personnel to gain an early understanding of access to the project area and the logistics required to conduct our planned exploration program […] in an area that has the potential to become a major new scandium province.”

Rare Critical Metal

Scandium is a rare metal not currently being mined at any operation worldwide.

Instead, it is generated from by-product extraction or the processing of stockpiles in China, Russia, and former Soviet Union countries.

Scandium’s importance and supply vulnerability has led to the US, European, and Australian governments formal designating it a critical mineral for applications across the automotive, aerospace, and defence industries.

It is also a vital component in solid oxide fuel cells to stabilise zirconia electrolytes and enable next-gen cells to achieve up to 70% electrical efficiency, a process key to the world’s decarbonisation efforts.

Source: SmallCaps