Megawatt rearing on Rare Earths

9 February 2023 10:54

Megawatt Lithium and Battery Metals have a rare opportunity in Australia’s Northern Territory, with rock chip samples taken from its Arctic Fox project, showing grades up to 2160 parts per million total rare earth oxides alongside results that indicated more zones of rare earth at its flagship project.

It brings in significant rare earth results just 35 kilometres away from the world-class Nolans Bore rare earth deposit held by Australian mining giant Arafura.

With one billion dollars in market capitalisation, Arafura has risen to become a titan of Australian rare earths due to excitement surrounding Nolans, with the company already in a binding offtake agreement with automotive giants Kia and Hyundai before mining and production have even begun.

Megawatt believe the mineralisation targeted at Arctic Fox is comparable to that at Nolans Bore, which contains a total mineral resource estimate of 56MT at an average grade of 2.6 per cent total rare earth oxides, extending 215 metres beneath surface with an estimated 26.4 per cent neodymium and praseodymium enrichment.

A total of 58 rock chip samples were taken from the project, with the discovery of mixed grain pegmatite areas providing new targets primed for follow-up, with a helicopter-borne sampling and mapping program planned to access areas of the project not accessible by foot or road.

The assays come at a prime time in Australian rare earth exploration, with rare earth giant Lynas recently reporting a 14.8 per cent rise in quarterly revenue as the electric vehicle and alternative energy markets continue to grow alongside the average selling, with neodymium and praseodymium in China growing to as high as US$83 per kilogram.

The company said the results spurred follow-up groundwork to assess for mineralisation.

“We are pleased to report compelling results of the rock chip sampling program at Arctic Fox and we look forward to further investigation based on these results in order to develop a better understanding of the potential for significant rare earth mineralization in this region,” chief executive David Thornley-Hall said.

Significant results:

  • 2,160 ppm TREO including 1306 ppm Yttrium
  • 920ppm TREO including (31% Magnet REO)
  • 517 ppm TREO including (29% Magnet REO)
  • 456 ppm TREO including (28% Magnet REO)
  • 446 ppm TREO including (28% Magnet REO)
  • 436 ppm TREO including (24% Magnet REO)

MEGA’s Canadian Securities Exchange-listed share price was trading at 5 Canadian cents today (9.03 am UTC+ 8 hours).


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