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% CaF2[i] and trenching intercepts of up to 16m at 71%
CaF2[ii].
·
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% CaF2. The
representative rare earths ore sample sent to SGS Lakefields for
metallurgical testing contains 16.8 wt% CaF2. 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% CaF2. 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% CaF2.
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% CaF2), which is used to produce hydrofluoric
acid as a base for the fluoride chemical industry, ceramic grade
(85-95% CaF2) and metallurgical grade (60-85%
CaF2), 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].
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]. 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).
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-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.
