REG - Altona Rare Earths - Monte Muambe High-Grade Gallium Discovery

Altona Rare EarthsAnnouncement

01/04/2025 07:15

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RNS Number : 0285D  Altona Rare Earths PLC  01 April 2025

1 April 2025

 

 

ALTONA RARE EARTHS PLC

("Altona" or "the Company")

 

 

MONTE MUAMBE HIGH-GRADE GALLIUM DISCOVERY

FLUORSPAR SCOPING STUDY UPDATE

 

Altona (LSE: REE), a resource exploration and development company focused on
critical raw materials in Africa, is pleased to announce the discovery of
high-grade mineralisation at Monte Muambe, with concentrations up to 232 g/t
Ga.

 

Highlights

 

·    High-grade gallium intercepts observed at Fluorite Zone and Target 6,
up to 232 g/t Ga.

·    Best intercept: MM039 from surface to 100m at 77 g/t Ga, including
14.89m at 141 g/t Ga.

·    Gallium is a rare and highly sought strategic metal whose price has
seen recent increases in the context of a trade war between China and the
United States.

·    The presence of gallium associated to rare earths could change the
economics of some of the rare earths ore bodies at Monte Muambe.

 

Gallium Discovery

 

Gallium is a rare metal usually extracted as a by-product from zinc and
bauxite ore and is used in a wide-range of electronic and high-technology
applications such as radars, light diodes and semiconductors. Gallium is
considered a strategic raw material by several jurisdictions including the
European Union, with China having a quasi-monopoly on its production. The
price of gallium is currently at about US$ 250 per kg, The recent ban of
gallium and germanium exports to the United States has propelled gallium to
its highest price since 2011, at US$ 585 per kg in December 2024.

 

The price shift in gallium, and recent discoveries of high-grade gallium
associated to rare earths in carbonatites, has prompted Altona to review its
drilling data for this metal. Gallium is one of the trace elements which were
analysed by Intertek Laboratories in the course of the preparation of our rare
earths mineral resource estimate. Several high-grade gallium intercepts were
noted in diamond drilling holes MM039 and MM040, with grades up to 232 g/t Ga.

 

The Company is pleased to announce the following significant gallium
intercepts:

 

 Hole ID    From     Length and Grade
 MM039      surface  100 m @ 77 g/t Ga
 including  70.85m   14.89m @ 141 g/t Ga
 MM040      37.3m    3.14 m @ 87 g/t Ga
 MM040      57.4m    25.53m @ 68 g/t Ga
 MM040      108.2m   32.27m @ 73 g/t Ga
 including  115.9m   5.53m @ 134 g/t Ga

 

Hole MM039 is located at the Northern End of the Fluorite Zone and also
contains high-grade rare earths and fluorspar intercepts. It is noteworthy
that gallium mineralisation is continuous along the entire length of the hole.

 

Hole MM040 is located on Target 6, which has identified high-grade rare earths
mineralisation but has seen relatively little drilling so far in comparison to
Target 1 and Target 4.

 

This discovery could potentially change the economics of some of the rare
earths ore bodies at Monte Muambe, in particular Target 6, by providing an
additional valuable by-product. The lateral extension of gallium
mineralisation is unknown and will be assessed as part of the next field work
campaign.

 

The Company will now check the potential recoverability of gallium, starting
with establishing the exact mineralogy of gallium mineralisation, which is
presently unknown. The Company will also immediately start reviewing the Monte
Muambe soil sampling database, which includes first-pass XRF gallium assays,
to identify any possible gallium anomalies in soil.

 

Fluorspar scoping study progress

 

The Company confirms that the fluorspar samples have been delivered to
Peacocke & Simpson laboratory in Zimbabwe for gravity separation and
flotation tests, and that the testing process has started. The delay in the
delivery was the result of logistical difficulties caused by post-election
instability in Mozambique, which has now subsided. Results from this testing
are expected during the course of April.

 

Cedric Simonet, CEO of Altona, commented: "Carbonatites systems typically host
a wide range of minerals. Monte Muambe is no stranger to this, with the
presence of rare earths and fluorspar. The discovery of gallium mineralisation
in parts of the carbonatite intrusion that have seen less exploration so far
is a positive development for us and underpins the potential for additional
discoveries at Monte Muambe.

"While current work on the potential for short-term fluorspar production
continues, we will initially carefully assess the possibility of recovering
gallium as a by-product of rare earths and/or fluorspar, and the potential
extent of gallium mineralisation at surface level."

 

This announcement contains information which, prior to its disclosure, was
inside information as stipulated under Regulation 11 of the Market Abuse
(Amendment) (EU Exit) Regulations 2019/310 (as amended).

 

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

 

-ends-

 

Altona Rare Earths Plc

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

Louise Adrian,
CFO
+44 (0) 7721 492 922

 

Strand Hanson (Financial Adviser)
                                         +44
(0) 20 7409 3494

Christopher Raggett

 

 

About Altona Rare Earths Plc

 

Altona is a resource exploration and development company focused on critical
raw materials in Africa. The Company is listed on the Main Market of the
London Stock Exchange with the ticker "REE". The Company currently holds
copper, fluorspar and rare earths projects.

 

The Monte Muambe rare earths and fluorspar projects is located in Northwest
Mozambique. The Project was acquired in June 2021, and the Company has so far
drilled over 7,800m, and defined a maiden JORC Mineral Resource Estimate of
13.6 million tons at 2.42% TREO. A Competent Person Report including the
Scoping Study for Monte Muambe was published on 18 October 2023. The Project
is now at Prefeasibility Study stage, with a focus on metallurgical testing
for rare earths extraction.

 

The Company is also assessing the possibility of rapidly putting in production
high-grade fluorspar veins occurring at Monte Muambe along the western margin
of the rare earth bearing carbonatite intrusion.

 

Altona is presently diversifying its portfolio by acquiring a limited number
of critical raw material projects to complement Monte Muambe. The acquisitions
of the Kabompo South copper project in Zambia and of the Sesana copper-silver
project in Botswana, located just 25 km from MMG's Khoemacau Zone 5
copper-silver mine, represent the first steps towards the implementation of
this expanded strategy.

 

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 styles 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.

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