ASX-listed MRG Metals has confirmed significant levels of gallium returned from analytical results as the company works to define its Garies project resource, in South Africa's Northern Cape province.

The company's drilling has found significant levels of up to 450 parts per million of gallium oxide, which is associated with rare earths and magnetite.

Analysis of 85 magnetite vein drill samples from 19 drill holes averaged 290 parts per million gallium oxide, with maximum assay results of 450 parts per million gallium oxide.

Notably, a bulk sample extracted from the drill samples for metallurgical testwork contained 347 parts per million gallium oxide, while two rare earth oxide-rich concentrates extracted from the bulk sample at a laboratory in South Africa assayed 880 parts per million and 573 parts per million of gallium oxide, respectively.

MRG says microscopy and electron microscope element mapping work established the gallium as being hosted in free pyrite grains. In turn, the pyrite comprises about 5% of the magnetite vein on site, with pyrite containing about 0.4% gallium.

Further metallurgical work will evaluate the potential for concentration of gallium-bearing pytire, MRG confirms.

Gallium is a highly sought-after critical mineral used in gallium nitrade and gallium arsenide semiconductors, which underpin power electronics, electric vehicle fast chargers, 5G radio frequency components and defence radar systems.

Gallium oxide prices averaged $367/kg in Shanghai on July 1.

"The identification of significant gallium associated with our rare earth mineralisation is very exciting, as it provides an additional avenue for technical evaluation at the Garies project. While our primary focus remains the development of the rare earth opportunity, these initial results support further metallurgical work to determine whether gallium has the potential to be recovered as a by-product of future processing. We look forward to advancing this work as part of our ongoing metallurgical programme," says MRG chairperson Andrew van der Zwan.

For context, the metallurgical processes used to concentrate rare earths at Garies have proven highly effective in recovering rare earths but are not optimised for recovering pyrite and therefore concentrating gallium.

The company will undertake further metallurgical testwork to assess alternative processing methods aimed at selectively concentrating the gallium-bearing pyrite and evaluating whether higher gallium grades can be achieved in a potential concentrate product.