Initiation of Coverage on MTM Critical Metals (ASX: MTM)

October 12, 2023

Following the acquisition of the highly prospective brownfields Pomme and Montveil South Projects in Quebec, Canada, and the discovery of rare earth mineralisation at the East Laverton project in Western Australia, MTM Critical Metals is focussing activities on the energy metals sector, particularly REEs. Although showing some weakness at the moment, we expect that the sector should pick up, driven by the ongoing developments in the decarbonising economy.

Having acquired the Quebec projects from Geomega Resources Inc (TSX-V: GMA), the Company has a head start on activities at the projects, in that it has access to Geomega’s IP and personnel, with significant experience on the adjacent Montveil deposit. Geomega has worked on Montveil for over 10 years, and for which critically, significant metallurgy has been undertaken, which has resulted in the development of a patented process.

Montveil, a hard rock carbonatite deposit, has an NI43-101 compliant Mineral Resource Estimate (MRE) of 266.6 Mt @ 1.46% TREO (including 0.32% NdPr, or 22% of the total REO content), and low thorium and uranium. It is the most accessible undeveloped REE deposit in Canada, and also the largest bastnaesite (a key REE bearing mineral) deposit in North America. Pomme, just 7km away is interpreted as being of the same intrusive event as Montveil (Montveil South covers part of the same body as Montveil), and recent broad spaced drilling by the Company intersected similar rock types and mineralisation in all 13 holes drilled. Assays returned to date have been very positive, with overall intersections of up to 513 m @ 0.33% TREO, including higher grade zones of up to 26.5 m @ 1.45% TREO.

These styles of deposit are important sources of rare earths, albeit with most production from upgraded weathered zones in regions of deep weathering. However, with ongoing developments in metallurgy, we would expect economic cut-off grades to fall, bringing more undeveloped fresh rock deposits into play to feed forecast demand.

In addition, the Company holds close to 2,000 sq km of greenfields tenements over the underexplored, and not well geologically understood Burtville Terrane in the Eastern Goldfields of Western Australia. Work by MTM to date has defined REE mineralisation hosted in weathered granites, similar in style to other Western Australian examples, and also lateritic Ni-Co mineralisation, similar to that at Murrin Murrin, just 100 km away from the Company’s tenements. Both of these occurrences are still open, have returned good grades, and are a work in progress with the potential to find significantly more of these styles of mineralisation at East Laverton.

With active exploration programmes ongoing we expect steady newsflow, particularly with the
ongoing assay results from both Pomme and Western Australia.