REG - Altona Rare Earths - Operational Update

Altona Rare EarthsAnnouncement

04/11/2024 07:00

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RNS Number : 6857K  Altona Rare Earths PLC  04 November 2024

4 November 2024

 

 

ALTONA RARE EARTHS PLC

("Altona" or "the Company")

 

 

MONTE MUAMBE FLUORSPAR MINING SCOPING STUDY

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 scoping study for the short-term development of a fluorspar mine at
Monte Muambe.

 

Highlights

 

·    Scoping study on short-term fluorspar mining at Monte Muambe started,
results expected Q1 2025.

·    Field activities completed and representative ore sample taken for
assay, beneficiation testing and evaluation by potential buyers.

 

As announced on 25 September 2024, the Company has started a scoping study
(the "Study") for the production of metallurgical grade fluorspar from
low-tonnage high-grade veins located along the western margin of the rare
earths bearing Monte Muambe carbonatite intrusion (the "Fluorite Zone").

 

As part of this Study, the Company's team carried out field activities at
Monte Muambe during the month of October. These included:

·    A photogrammetric topographic survey of the Fluorite Zone to provide
a high-resolution Digital Terrain Model ("DTM") to serve as base for 3D
modelling of fluorspar mineralisation.

·    Detailed geological mapping of high-grade fluorspar outcrops.

·    The production of a representative 300kg crushed sample of high-grade
fluorspar ore.

 

The ore sample will be split into different sub-samples which will be used for
geochemical assays and for beneficiation testing. Representative sub-samples
will also be submitted to potential buyers and off-takers for evaluation this
month. Results will be communicated to shareholders as soon as possible and
will be used as inputs in the Study.

 

The Study will take into consideration the potential production of 15,000 to
20,000 tons of fluorspar per year over an initial period of 5 years.
Beneficiation of high-grade ore from the Fluorite Zone to produce
metallurgical-grade fluorspar is expected to be simple and to involve crushing
followed by gravity concentration using jigs or a Dense Medium Separation
("DMS") plant, translating into a relatively low capex. The Study is expected
to be completed during Q1 2025.

 

The anticipated size and relative simplicity of this project lends itself to
fast-tracking, with potential for commercial sales within 12 months of an
investment decision.

 

Cedric Simonet, CEO of Altona, commented: "The potential rapid development of
fluorspar production from the Fluorite Zone at Monte Muambe represents an
excellent opportunity to monetise an additional part of our investment in this
asset. If successful, it would create a cash inflow for the Company.

 

"Furthermore, this project fits perfectly in our diversification strategy,
along with our promising copper exploration assets in Botswana and in Zambia,
therefore expanding revenue generation opportunities for the Company."

 

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". 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, and a mining
licence is expected to be granted before the end of 2024. 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.

 

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