Empire Metals Discovers Potential Titanium ‘Super Giant’

• Empire Metals discovered a large, high-grade titanium deposit called the Pitfield Project.
• They are still exploring and drilling to determine the scale, mineral assemblages, and high high-grade areas.
• The goal is to establish the optimal processing methods and commercialisation pathway.
• Additional financing and strategic partners will likely be needed to develop the project.
• Management recognises they need to evolve skill sets and grow the company to match the scale of this discovery.

Exploration company Empire Metals (LON:EEE) recently announced a major discovery at their 100% owned Pitfield Project in Western Australia. The company hit significant titanium mineralization in initial drilling over a +30km strike length, with grades up to 20% TiO2 sampled at the surface near drill holes. Empire believes they have uncovered a large mineralized system enriched in titanium that is unique globally.

As Empire Managing Director Sean Bunn explained, “We found titanium, we found titanium over 30km strike length, we found it now 300-400m below surface, every meter full of titanium minerals.” This led them to classify it as a “super giant” potentially among the largest titanium discoveries worldwide. While further study is still required, Bunn stated, “We are stepping out and seeking within this 30km strike length where we would seek to find better grades of mineralization and what's hosting the higher grades.”

Titanium Market Opportunity

With a market size projected to reach $26 billion by 2030, titanium represents substantial global demand.

As Bunn highlighted, “Whilst people are talking lithium and other metals, the lithium market is about $8 billion per annum currently...titanium industry is $26 billion already and growing at about 6%.”

The key for Empire will be establishing the optimal mineralization and processing methods to produce high-purity titanium compounds. There is also potential for copper and other minerals, providing further upside.

Pitfield's Unique Geology

A key differentiator of Pitfield is the geological setting within a large paleo sedimentary basin, enriched by a hydrothermal event. As Bunn explained, “This is a unique outlier in the titanium world...there are no sedimentary hosted massive titanium deposits that have the reported resources they do.” Companies typically mine titanium from igneous deposits or mineral sands. The mineralization at Pitfield covers multiple titanium-bearing minerals across 30km in a basin setting that Empire believes is analogous to world-class deposits like the Carlin Trend gold deposits in Nevada.

Advancing Towards Development

With the sheer size of the system, Empire's focus is on better understanding the grades, mineralization, and determining areas to target initial development. As Bunn elaborated, "We're working on still exploring, but not looking to necessarily make another discovery... we start to analyze the minerals, do some metallurgical investigations, that's all underway.” The company has two rigs actively drilling now and plans another 6,000m over the next quarter. The goal is to pinpoint areas for an initial resource estimate and advance metallurgical testing to derive viable processing flowsheets.

As Bunn summarised, “Decision-making is important...we need to narrow down our scope, focus on where the grades are...then that translates to metallurgical investigations.” Defining high-grade areas and optimal mineral recoveries will bolster Empire’s commercialisation plans. With titanium dioxide selling at over $2,000 per tonne, focusing on higher purity products could substantially improve project economics compared to selling a 10-15% ilmenite concentrate.

Need for Strategic Partners

Empire recognises that developing a large project requires commensurate financing and capabilities. When asked about funding plans, Bunn acknowledged, “I'll be honest, I don't have the answers for you today.” He elaborated that they will likely need cornerstone investors and/or partnerships at some stage, while avoiding options overly dilutive to shareholders. As he asserted, “I don't imagine us as a seller, I don't imagine a situation where we get there and flip it, give it away.” The company wants to maintain leverage and upside in the project.

As Empire transitions towards development, Bunn acknowledged they need to scale up accordingly:

“We as a company don't match, if you like, a giant system and giant discovery like this. We need to grow the company as we grow our understanding of what we have...I’ve already started to secure technical expertise.”

He wants to engage with larger industry players globally to find optimal partners to unlock the value at Pitfield. While the pathway is still being mapped out, Empire has the foundational assets and vision to pursue something remarkable.

The Investment Thesis for Empire Metals

• Massive titanium discovery with world-class potential based on scale and grades
• Uniquely positioned with a district-size land package hosting multiple minerals
• Drill results continue to demonstrate extensive high-grade mineralization
• Titanium in structural supply deficit as demand outpaces new projects
• Empire focused on optimising grades, recoveries, and products to enhance economics
• Strategic partners are needed to develop large projects; cornerstone investment likely
• Experienced management knows the titanium industry; actively building our team

Empire Metals offers investors exposure to a potential company-making titanium discovery in Western Australia. While still early stage, drill results indicate outstanding potential for a world-class project. As further work better defines mineralization and viable development pathways, strategic partners will look to participate. Titanium market dynamics provide an exceptional backdrop, with tight supply conditions and a steady 6% annual growth in demand from aerospace, defence, and other key industries. Empire represents a unique opportunity to invest in a sedimentary-hosted titanium district play located in a top-tier mining jurisdiction. The company has the assets and vision to pursue initial development, likely supported by cornerstone investors to capitalise on this rare discovery.