ASX-listed miner Tivan has cleared the final hurdles to start a significant drilling campaign at its Molyhil tungsten project in Australia's Northern Territory. In a filing to the Australian Securities Exchange, the company said it has received all necessary regulatory and cultural heritage approvals for an 8,000-metre drill program, a key step toward advancing the project.
The drilling is designed to firm up the deposit model and feed into a pre-feasibility study — an early blueprint that tests whether a mine could be built and operated profitably. For investors, this is a sign that Tivan is moving Molyhil closer to a development decision, though there is still a long road ahead before any production begins.
What's happening at Molyhil?
Molyhil is a tungsten and molybdenum deposit located in the Northern Territory, about 200 kilometres northeast of Alice Springs. Tungsten is a hard, dense metal used in cutting tools, mining equipment, and military applications, while molybdenum is often added to steel to make it stronger and more corrosion-resistant. Both are considered critical minerals by many governments, which has increased strategic interest in projects like Molyhil.
The 8,000-metre drill program will test the extent and grade of the mineralisation, helping Tivan build a more accurate resource model. That model is essential for the pre-feasibility study, which will assess whether the project can be developed economically. The company has said the drilling should also help de-risk the project by confirming the geology and allowing for more precise mine planning.
Alongside the drilling, Tivan is also working on a proposed joint venture and has begun making AU$8.8 million worth of acquisition payments. These payments are likely related to earlier deals to secure the project or surrounding tenements, and they signal that Tivan is committing real capital to advance Molyhil. The joint venture, if completed, could bring in a partner to share the costs and risks of development, which is common in the mining sector for projects at this stage.
Why this matters for investors
For everyday investors, the key takeaway is that Tivan is making tangible progress on a project that could become a meaningful producer of critical minerals. The approvals remove a major obstacle, and the start of drilling is a concrete milestone. However, it's important to remember that mining projects take years to move from drilling to production, and there are many risks along the way, including funding, permitting, and commodity price fluctuations.
Tungsten prices have been volatile, but the metal's role in defence and industrial applications has made it a focus for supply-chain security. That could support long-term demand, but it doesn't guarantee that Molyhil will be profitable. The pre-feasibility study will be a crucial test, and investors should watch for its results, which are likely to come after the drilling is completed and analysed.
Tivan is not the only junior miner advancing critical mineral projects. Elsewhere, Visionary Metals has started drilling at its King Solomon nickel-copper project, and Titan Minerals' Ecuador drilling has boosted confidence in its Dynasty gold resource. These examples show that drilling campaigns are a common way for explorers to add value, but they also highlight the speculative nature of the sector.
What to watch next
Investors should keep an eye on several things in the coming months. First, the progress of the drilling program and any assay results that are released. Positive results could boost Tivan's share price, while disappointing results could have the opposite effect. Second, the status of the proposed joint venture — a deal could provide a significant cash injection or technical expertise. Finally, the completion of the pre-feasibility study, which will give a clearer picture of the project's economics.
It's also worth noting that Tivan is making AU$8.8 million in acquisition payments, which will use up cash. Investors should consider the company's balance sheet and whether it has sufficient funding to complete the drilling and the study without needing to raise more capital, which could dilute existing shareholders.
For those interested in the broader critical minerals space, the developments at Molyhil come as governments and companies worldwide look to secure supplies of metals essential for the energy transition and defence. This has led to increased M&A activity, as seen with Rio Tinto's move to buy Glencore's Aurukun bauxite project and Bannerman's efforts to fund its uranium project. While these are larger deals, they reflect the same underlying demand for strategic minerals.
In summary, Tivan's approval to drill at Molyhil is a positive step, but it's just one step in a long process. Investors should treat the news as a development to monitor rather than a reason to rush in. The real test will come when the drill results and the pre-feasibility study are released, and those will provide a much clearer picture of whether Molyhil can become a profitable mine.
