Panther Metals (LSE:PALM), the exploration company focused on mineral projects in Canada, said Phase 1 metallurgical testwork at its Dotted Lake Project in Ontario achieved approximately 38 weight % magnesium recovery.
That result significantly exceeds the 19-25 wt.% recovery ceiling typically seen in conventional single-stage leaching, where silica passivation limits extraction.
The testwork, carried out by Test Design Implement Solutions on 134kg of crushed serpentinite drill core, evaluated Extrakt Process Solutions' proprietary leaching technology as an alternative to conventional processing.
Magnesium sits on Canada's official critical minerals list and is used across automotive, aerospace, defence and advanced manufacturing.
"When we commissioned the Phase 1 testwork, our objective was to answer one fundamental question: 'Can we recover the magnesium from Dotted Lake?' The answer is 'Yes!'", said chief executive Darren Hazelwood.
Related reagent management system testwork on similar material showed a magnesium concentration factor of at least 2x, pointing to potential reductions in downstream processing costs.
Assay data from 60 samples across drillholes DL24-002 and DL24-004 showed the material also carries elevated chromium, nickel and cobalt, which Panther will assess as potential by-products.
Dotted Lake sits roughly 16 kilometres from the Hemlo Gold Mine, which has produced approximately 25 million ounces historically.
Hazelwood said the company now plans to explore opportunities with government bodies and industry participants roughly North American critical minerals supply. Further metallurgical testing, mass balance verification and techno-economic evaluation are needed before the project can advance toward pilot-scale testing.
News Intelligence what this means for the company
Panther Metals' Phase 1 testwork at Dotted Lake achieved 38% magnesium recovery, nearly doubling the 19–25% ceiling of conventional leaching and demonstrating that the company's chosen extraction technology can unlock magnesium from its Ontario serpentinite deposit. The result validates the project's core technical premise and clears the path toward pilot-scale testing, though significant work—mass balance verification, techno-economic evaluation, and further metallurgical testing—remains before commercial viability can be assessed.
This is a proof-of-concept milestone for an exploration-stage company: Panther has moved from identifying a magnesium resource in a politically stable jurisdiction to demonstrating that a non-conventional extraction method can materially outperform industry norms. The result does not de-risk the path to production—pilot testing, permitting, and capital raise remain ahead—but it removes a critical technical barrier and strengthens the case for further investment in the project.
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