Australia’s Largest Palladium Discovery Made Using AI Technology
Earth AI, a clean energy metals exploration company, and its partner Legacy Minerals announced the discovery of what could be Australia's largest palladium deposit. The discovery, named Fontenoy, is located in Warmbath on the southwestern slopes of New South Wales, within the mineral-rich Lachlan Fold Belt.
Earth AI reported the identification of a two-square-kilometer mineralized zone beyond previous drilling areas, potentially making it the world's largest platinum group metals prospect. The deposit includes platinum, palladium, and nickel, marking the first verified greenfield discovery using AI technology and the first time a magmatic copper-nickel-platinum group metals deposit has been found on Australia's east coast.
The discovery could significantly impact the global key minerals market. Currently, around 40% of palladium production comes from Russia and another 40% from South Africa. Russia is facing international sanctions, while South Africa struggles with challenging production conditions and economic instability. The new Australian source could help diversify supply.
Palladium is a critical component used as a catalyst to reduce toxic emissions from internal combustion and hybrid vehicles. Both platinum and nickel are also important for hydrogen fuel cells and lithium-ion battery technologies that support the energy transition.
Roman Teslyuk, CEO of Earth AI, described the opportunities at Fontenoy as "numerous and significant," highlighting the metals' role in supporting the shift to clean energy.
Earth AI, founded in 2017, has developed a novel exploration methodology that combines AI-driven mineral discovery software with proprietary drilling technology, allowing for faster and more efficient identification and assessment of mineralized prospects. The company previously made its first greenfield molybdenum discovery using AI technology in 2023.
In 2022, Earth AI recognized the potential for magmatic nickel at Fontenoy and subsequently formed a joint venture with Legacy Minerals. Under the agreement, Legacy Minerals would receive a 3% royalty to compensate for circling and drilling the initial discovery hole. Last month, Earth AI increased its stake in the project to 80%.
