REG - Altona Rare Earths - Mineral Resource Estimate

Altona Rare EarthsAnnouncement

25/09/2023 07:00

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RNS Number : 4410N  Altona Rare Earths PLC  25 September 2023

25 September 2023

 

ALTONA RARE EARTHS PLC

("Altona" or "the Company")

 

 

Maiden Mineral Resource Estimate

13.6 million tons at 2.42% TREO

 

Altona (LSE: REE), a resource exploration and development company focused on
Rare Earths in Africa, is pleased to announce its maiden JORC compliant
Mineral Resource Estimate ("MRE") for its Monte Muambe rare earths project in
Mozambique.

 

Key highlights:

 

·    13.6 million tons at 2.42% TREO((1)) using a cut-off grade of 1.5%
TREO;

 

·    Including 0.31% NdPrO((2)) representing 42,500 contained tons NdPrO;

 

·    58% of the reported tonnage in the Indicated category;

 

·    Mineralisation open at depth at both Target 1 and Target 4; and

 

·    The Scoping Study is expected to be finalised for publication no
later than the third week of October.

 

(1)   TREO (Total Rare Earth Oxide) is the sum of all Rare Earth Elements
and Yttrium, expressed in percentage.

(2)   NdPrO is the sum of Nd2O3 and Pr6O11, expressed in percentage, and is
included in TREO%.

 

The estimate, which is focused on the high-grade zones of the deposit, is in
line with Altona's expectations and it follows the Company's strategy of
focusing its endeavours on the part of the deposit that is most likely to be
exploitable, as opposed to "drilling for numbers", in order to fast-track the
project towards production.

 

The complete Competent Person Statement is available on the Company's website
investor section: https://www.altonare.com/investors/reports/
(https://www.altonare.com/investors/reports/)

 

The MRE represents an increase of tonnage compared to the high-grade part (2%
TREO cut-off) of the Exploration Target estimate published on 8 August 2022.

 

Future resource increases will be achieved by drilling below the level of pit
shells at Target 1 and 4, resource drilling at Target 3 and Target 9, as well
as on-going exploration work.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The estimate includes 42,500 tons of contained Neodymium ("Nd") and
Praseodymium ("Pr") Oxides. These elements are the most sought after "Magnet
Metals" due to their usage in the manufacture of power drivetrains for
electric vehicles ("EV") and wind turbines. They are therefore critical for
the world's energy sources decarbonisation, and the future of the EV market
relies just as heavily on sustainable sources of Nd and Pr as it does on
battery minerals, such as lithium, graphite and cobalt.

 

The Company is now fully focused on finalising its updated Competent Person
Report ("CPR") which will include all the details of the MRE computation, as
well as the Scoping Study, which is expected to be published no later than the
third week of October. The minor delay in the expected publication date of the
CPR is due to additional work being required on the Scoping Study, part of the
report to ensure the highest standard of document is produced.

The completion of the CPR will also trigger the increase of Altona's holding
in Monte Muambe to 51% from its current position of 20%, and the start
of Phase 3 of the farm-in agreement.

Cedric Simonet, CEO of Altona, commented: "Monte Muambe's maiden MRE is an
important milestone for us. This is the first ever official measure of the
size and grade of the project and we are delighted with the results, which
confirm the presence of a potentially open-pit mineable REE resource. The size
is of the same order of magnitude as some of our published peers' ore reserve
estimates and will be further increased through down dip drilling at both
Target 1 and Target 4, as well as resource drilling at Target 3 and Target 9.

 

"The Company is now finalising its Scoping Study, which will give a first-pass
economic viability overview of the project, to the highest standard."

 

Maiden Mineral Resource Estimate Summary at a 1.5% TREO cut-off

 

 Target    Classification  TONNES (Mt)  TREO%  NdPrO%  Pr(6)O(11) ppm  Nd(2)O(3) ppm  Tb(4)O(7) ppm  Dy(2)O(3) ppm
 1         Indicated       8.0          2.38    0.32   910             2,250          15.1           80.0
           Inferred        0.8          2.28    0.30   861             2,140          14.6           78.0
           TOTAL           8.8          2.38   0.32    905             2,240          15.1           80.0
 4         Indicated
           Inferred        4.8          2.50    0.31   872             2,190          25.6           143
           TOTAL           4.8          2.50    0.31   872             2,190          25.6           143
 OVER ALL  Indicated       8.0          2.38    0.32   910             2,250          15.1           80.0
           Inferred        5.6          2.47    0.31   871             2,190          24.1           134
           TOTAL           13.6         2.42   0.31    894             2,230          18.8           102

 

The MRE does not correspond to the entire block model constructed from the
drilling data, but to the part of the model for which the following reasonable
prospects for eventual economic extraction ("RPEEE") were applied: pit shells
based on a 1.5% TREO cut-off, revenue of 24.65 USD/kg TREO in Mixed Rare Earth
Carbonate (MREC), and average total recovery to MREC of 48%.

Note: The words 'JORC Compliant' should be interpreted as 'Reported in
accordance with the JORC Code and estimated (or based on documentation
prepared) by a Competent Person as defined by the JORC Code', in accordance
with the JORC Code 2012.

-ends-

 

To subscribe for RNS alerts, please visit:
https://www.altonare.com/investors/regulatory-news-alerts/
(https://www.altonare.com/investors/regulatory-news-alerts/)

 

 

Altona Rare Earths Plc

Cedric Simonet,
CEO
+44 (0) 7778 866 108

Christian Taylor-Wilkinson, Business
Development
+44 (0) 7795 168 157

 

Novum Securities Ltd (Corporate
Finance)
+44 (0) 20 7399 9400

David
Coffman

Daniel Harris

George Duxberry

 

Allenby Capital Ltd (Joint
Broker)
+44 (0)20 3328 5656

Kelly Gardiner (Sales)

Nick Athanas (Corporate Finance)

 

Optiva Securities (Joint
Broker)
+44 (0) 20 3411 1882

Daniel
Ingram

 

Yellow Jersey PR (Financial
PR)
+44 (0) 20 3004 9512

Sarah Hollins

Annabelle Wills

Soraya Jackson

 

 

About Altona Rare Earths Plc

 

Altona is a resource exploration and development company focused on Rare
Earths in Africa. The Company is listed on the Main Market of the London Stock
Exchange.

 

Rare Earths are a group of 17 chemical elements, many of which are critical to
the World's on-going transition from carbon-based to renewable energies, and
to the defence and communication sectors.

 

The Company currently focuses on the development of Monte Muambe, its flagship
Magnet Rare Earths Project, located in Northwest Mozambique. The project was
acquired in June 2021, and the Company has so far drilled over 7,800m, to
support its maiden JORC Mineral Resource Statement.

 

A Competent Person Report including a Scoping Study is expected to be
published no later than the third week of October.

 

Altona continues to take advantage of its position in Africa to assess other
possible Rare Earths opportunities on the Continent.

 

Competent Person Statement

 

The information in this RNS that relates to Geology and Exploration results is
based on information compiled and/or reviewed by Cédric Simonet, who is a
Member of European Geologist Federation (Eur. Geol. #739). Cédric Simonet is
the Chief Executive Officer and a Director of the Company. He has sufficient
experience which is relevant to the style of mineralisation and type of
deposit under consideration and the activity which he is undertaking to
qualify as a Competent Person in terms of the 2012 Edition of the Australian
Code for the Reporting of Exploration Results, Mineral Resources and Ore
Reserves. Cédric Simonet consents to the inclusion in the RNS of the matters
based on his information in the form and contest in which it appears.

 

The information in this RNS that relates to the Estimation and Reporting of
Mineral Resources has been compiled by Dr Andrew Scogings, PhD (Geology) RPGeo
(industrial minerals), Mr Kahan Cervoj and Mr Robert Barnett, Pr. Sci. Nat.

 

Dr Scogings, Mr Cervoj and Mr Barnett are employed by Snowden Optiro and are
independent of Altona. Dr Scogings is a Member of the Australian Institute of
Geoscientists (Number 3013) and the South African Geological Society. Mr
Cervoj is a Member with the AusIMM (Number 211785).  Mr Barnett is a Fellow
of the Geological Society of South Africa and a Professional Natural Scientist
Registration No. 400106/06.  Dr Scogings, Mr Cervoj and Mr Barnett have
sufficient experience that is relevant to the style of mineralisation and type
of deposit under consideration and to the activity which they are reporting to
qualify as Competent Persons as defined in the JORC Code (2012).

 

The scientific and technical information in this report that relates to
process metallurgy is based on information reviewed or work directed or
completed by Mr Gavin Beer, Independent Consultant. The metallurgical
evaluation and factors including costs and assumptions for the reporting of
Mineral Resources have been reviewed and accepted by Mr Beer.  Mr Beer has
sufficient experience that is relevant to the type of processing under
consideration and to the activity being undertaken and qualifies as a
Competent Person as defined by the JORC Code (2012).

 

The complete Competent Person Statements for the MRE, including the
corresponding JORC Table 1, is available on the Company's website.

 

For more information visit: www.altonaRE.com (http://www.altonaRE.com)

 

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