REG - Altona Rare Earths - Operational Update

Altona Rare EarthsAnnouncement

25/09/2024 07:00

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RNS Number : 5053F  Altona Rare Earths PLC  25 September 2024

25 September 2024

 

 

ALTONA RARE EARTHS PLC

("Altona" or "the Company")

 

 

OPERATIONAL UPDATE

 

Altona (LSE: REE), a resource exploration and development company focused on
critical raw materials in Africa, is pleased to provide an operational update
on its Monte Muambe Rare Earths and fluorspar project in Mozambique and its
Kambopo South copper project in Zambia.

 

Highlights

 

·    Initial flotation rougher tests results received for Monte Muambe.
Test F5 shows a high rare earths recovery (69.3%) and good selectivity of rare
earth minerals vs fluorite. Results provide a positive pathway for further
optimisation of flotation parameters.

·    Review of the Monte Muambe project's potential for fluorspar
production initiated, including the possible short-term production of met
grade fluorspar from low-tonnage high-grade hydrothermal fluorspar veins.

·    These fluorspar veins have legacy drilling intercepts of up to 10m at
54.77% CaF(2) i  (#_edn1) and trenching intercepts of up to 16m at 71%
CaF(2) ii  (#_edn2) .

·    Presence of sediment-hosted copper mineralisation 4 km East of the
Kabompo South licence visually confirmed by the Company's CEO during a recent
site visit.

·    Geophysical consultant engaged to reprocess and review legacy
geophysical data as well as the diamond potential for Kabompo South.

 

Monte Muambe - Metallurgy

 

Mineralogy and partial flotation rougher tests results have been received from
SGS Lakefields. Froth flotation is a standard separation method for minerals
from milled ore, and rougher flotation is the first stage of concentration.

 

Mineralogical testing confirmed that rare earths are mostly contained in rare
earths fluoro-carbonates (bastnaesite, parasite and synchisite) (71 wt%),
monazite (18%), and other rare earths minerals (11%).

 

A range of flotation parameters and reagents were tested. The best results
were obtained with test F5, which showed a good selectivity of rare earths
minerals vs fluorspar, and a recovery of 69.3% for rare earths. Results
obtained so far provide a clear pathway for further optimisation of flotation
parameters, which will take place over the next weeks.

 

Flotation parameters are particularly important at Monte Muambe as an increase
of the rare earths concentrate grade considered in the scoping study is
expected to significantly reduce the capex and opex of the downstream
hydrometallurgy process.

 

Monte Muambe - Fluorspar production potential re-assessment

 

Since 2021 the Company's exploration work at Monte Muambe has been focused on
its rare earths deposits. Monte Muambe, however, was originally known for its
fluorspar potential, and legacy mineral exploration activities were largely
focused on this mineral. Considering the currently depressed prices of rare
earths, the Company considers that re-assessing the economic potential of
associated minerals is a prudent course of action.

 

Fluorspar is encountered in two forms at Monte Muambe: as disseminations in
rare earth ore, and as hydrothermal veins lining the contact between
carbonatites and fenites.

 

Assays of drilling samples obtained by Altona since 2021 have shown the
ubiquitous presence of disseminated fluorspar in rare earths ore at Target 1
and Target 4, with a grade averaging 13.2% CaF2 for samples having over 1.5%
TREO, and reaching as high as 70.45% CaF(2). The representative rare earths
ore sample sent to SGS Lakefields for metallurgical testing contains 16.8 wt%
CaF(2). Besides the production of a rare earths concentrate, the objective of
on-going metallurgical test work at SGS Lakefields is also to assess the
possible separation of a fluorspar concentrate by-product.

 

Legacy exploration work in the western part of the Monte Muambe carbonatite
intrusion resulted in the definition of a historical JORC compliant inferred
mineral resource of 1.6 million tonnes at 19% CaF(2). This estimate covers
both disseminated fluorite and hydrothermal fluorite. A review of legacy
drilling and trenching data shows that hydrothermal fluorite veins have a
thickness ranging from 10 to 20m, with grade of up to over 70% CaF(2).

 

Fluorspar is an essential mineral used in many industries for its intrinsic
properties, and as the main source of the element fluorine. Fluorspar is
identified by both the United States and the European Union as a critical
mineral. The main standard grades of fluorspar are acid grade (>97%
CaF(2)), which is used to produce hydrofluoric acid as a base for the fluoride
chemical industry, ceramic grade (85-95% CaF(2)) and metallurgical grade
(60-85% CaF(2)), which is mainly used as a flux for the metallurgical
industry. Fluorspar is crucial to the production of lithium batteries, and
manufacturing an electric vehicle requires about 45 kg of fluorspar.
Hydrofluoric acid is also an essential input for the production of
photovoltaic panels.

 

Since 2021, fluorspar prices have been steadily increasing, driven by a supply
gap and dwindling reserves in China. After reaching record prices in the third
quarter of 2023, fluorspar prices currently stand at about USD 480 per ton,
40% higher than the average for 2021. Analysts forecast a chronic
demand-supply gap, with the US Department of Energy expecting demand to exceed
supply by 40-70% by 2035 iii  (#_edn3) .

 

For the above reasons, the Company has decided to undertake an in-depth review
of Monte Muambe's potential for fluorspar production. Beside on-going
metallurgical test work, the Company will review legacy data, collect new
samples and data on site in October 2024, and prepare a conceptual study with
a view of assessing the possible short-term production of met grade fluorspar
from known high-grade hydrothermal fluorspar veins of the Fluorite Zone.

 

Kabompo South copper project

 

The Company's CEO Cedric Simonet undertook a site visit to large scale
exploration licence 21403-LEL-HQ ("Kabompo South licence") in September 2024.
The visit confirmed satisfactory access conditions, as well as the general
geological context. Mr Simonet was able to observe sediment-hosted copper
mineralisation having been recently mined at the Kamweji occurrence, just 4 km
to the East of the Kabompo South licence. Legacy drilling data on this
occurrence include 7.9m (TT) at 1.84% Cu and 16.6m (TT) at 1.71% Cu, contained
mostly in chalcocite iv  (#_edn4) . The Katangan sedimentary formations
outcropping at Kamweji extend to the West into the Kabompo South licence.

 

The Company has engaged the services of Earthmaps Consulting, a Namibia based
geophysical services company headed by industry veteran Klaus-Peter Knupp to
reprocess and review the project's legacy geophysical datasets, which include
a high-resolution ground magnetometer survey covering about 50% of the
licence.

 

Separately, the Company is also reviewing the Kabompo South licence's
potential for diamonds, based on legacy reports of the presence of diamonds in
the Dongwe river, including inside the licence area.

 

Cedric Simonet, CEO of Altona, commented: "Metallurgy is the most challenging
part of rare earths mining projects. Over the past months we have tremendously
increased our understanding of the mineralogy and metallurgy of Monte Muambe,
and I am very pleased with the test work's progress. While more work is
necessary, and will continue over the next weeks, results received so far show
a clear path towards a viable beneficiation process and the production of a
rare earths concentrate.

 

"The possible short-term production of fluorspar, another critical mineral,
from Monte Muambe is a very exciting possibility and challenge, which fits
neatly in the Company's strategy to diversify its portfolio of commodities and
realise the value from its assets."

 

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

 

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

David
Coffman

Daniel Harris

 

 

 

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

 

The Company is currently developing 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, 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 and process.

 

Altona is presently diversifying its portfolio by acquiring a limited number
of critical raw material projects to complement Monte Muambe. The acquisition
of the Kabompo South copper project in Zambia and of the Sesana copper-silver
project in Botswana represents the first steps towards the implementation of
this expanded strategy.

 

 i  (#_ednref1) Legacy hole MURC011, 22 to 32m

 ii  (#_ednref2) Globe Metals & Mining, ASX Announcement of 30 April 2012

 iii  (#_ednref3)
https://www.energy.gov/sites/default/files/2023-05/2023-critical-materials-assessment.pdf

 iv  (#_ednref4) Kihn CM, Wheeler JC, 1973 - Kamweji Exploration area - EL
31/1 - Final Report. Roan Consolidated Mines Ltd.

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