Critical Metals Corp. Has Commenced Drilling at the Tanbreez Rare Earth Deposit

Rhea-AI Summary

Critical Metals Corp (Nasdaq: CRML) has launched a diamond drilling program at the Tanbreez Greenland Rare Earth Mine. The program includes 14 holes totaling up to 2,200 meters and aims to evaluate resources and project lifespan. Expected to last 30 days, the drilling is conducted by 60 North Greenland and supervised by rare earth experts.

The Tanbreez project is seen as important for reducing Western dependence on China for critical materials in clean energy and defense applications. The program focuses on converting mineral resources from Inferred to Indicated status and increasing the throughput target from 0.5 to 3 million tonnes per annum. Critical Metals Corp plans to conduct a SK-1300 assessment and a comprehensive feasibility study.

Significant progress has been made, with 414 drill holes and over 366,000 assays already completed, providing extensive data on the deposit's geology and rare earth element distribution.

Positive

• Launch of diamond drilling program at Tanbreez Greenland Rare Earth Mine
• Potential to reduce Western dependence on China for critical materials
• Plans to increase throughput target from 0.5 to 3 million tonnes per annum
• Extensive existing data: 414 drill holes and over 366,000 assays completed
• Exploitation license already awarded four years ago

Negative

• Drilling program subject to weather conditions and site accessibility
• Results of the drilling program are yet to be determined

Mining Industry Analyst

The commencement of drilling at the Tanbreez Rare Earth Deposit marks a significant milestone for Critical Metals Corp. This program aims to enhance the project's feasibility analysis and advance its development roadmap, which could potentially impact the company's valuation.

The focus on rare earth elements is strategically important, given the growing demand for these materials in clean energy and defense applications. The company's goal to reduce western dependence on China for critical materials aligns with current geopolitical trends, potentially positioning CRML favorably in the market.

Investors should note the experienced team overseeing the project, including former government officials and industry experts, which adds credibility to the operation. The planned increase in throughput from 0.5 million to 3 million tonnes per annum, if achieved, could significantly boost the project's economic potential.

Geologist

The drilling program at Tanbreez is comprehensive and well-designed. With 14 holes totaling 2,200 meters, it should provide substantial data to evaluate resources and project lifespan. The existing database of 414 drill holes and over 366,000 assays indicates a thorough understanding of the deposit's geology.

The statement by Gregory Barnes about the uniqueness of the core sample is intriguing and suggests potentially high-grade mineralization. However, investors should await official assay results before drawing conclusions.

The planned conversion of resources from Inferred to Indicated status is a critical step in de-risking the project and increasing investor confidence. The additional percussion drilling and twin hole program for QAQC compliance demonstrate a commitment to robust geological practices, which is essential for project advancement and future financing.

Financial Analyst

While the drilling program is a positive step, investors should consider that Critical Metals Corp is still in the development stage. The company's focus on advancing towards a comprehensive feasibility study and SK-1300 assessment indicates a structured approach to project development, but it's important to note that significant capital expenditure will be required before production can begin.

The potential increase in throughput to 3 million tonnes per annum could substantially improve the project's economics, but this will need to be validated through further studies. The existing exploitation license and completed studies provide a solid foundation, potentially reducing time to production.

Investors should monitor the company's cash position and funding strategy for future development stages. The strategic importance of rare earth elements in the current geopolitical climate could attract government support or strategic partnerships, potentially enhancing the company's financial position.

Diamond Core Drilling program of 14 holes totalling ca. 2,200 meters to enhance feasibility analysis and advance the project’s development roadmap

NEW YORK, Sept. 04, 2024 (GLOBE NEWSWIRE) -- Critical Metals Corp. (Nasdaq: CRML) (“Critical Metals Corp”), a leading mining development company focused on critical metals and minerals and producing strategic products essential to electrification and next generation technologies for Europe and its western world partners, today announced the launch of a diamond drilling program at the Tanbreez Greenland Rare Earth Mine (the “Tanbreez Project”).

The drilling program consists of 14 holes with a total cumulative length of up to 2,200 m and will evaluate the resources contained in the mine and the mine’s projected lifespan. The drilling program is expected to last approx. 30 days subject to the appropriate weather conditions and site accessibility.

“The Tanbreez project offers immense potential for reducing western countries’ reliance on China for critical materials needed to support the transition to clean energy and defense applications, thereby bolstering national security,” said Tony Sage, CEO and Chairman of Critical Metals Corp. “We look forward to the results of this drilling program as we continue to advance our development strategy for this foundational rare earth asset.”

Drilling Program Details and Core Extraction

The program is being conducted by the experienced Greenland drilling contractor, 60 North Greenland, and supervised by the team of internationally acclaimed rare earths geological experts, such as Mr. Gregory Barnes, the founder of Tanbreez Project, along with  Mr. Hans Kristian Schønwandt, a former Deputy Minister of Mines for Greenland, and Mr. Ole Christiansen who together bring an extensive knowledge of the Tanbreez mineral deposit and over 40 years’ of professional credentials of development of mining projects from greenfield stage to production. Gregory Barnes said, “In my 22 years' experience of drilling in Greenland, I have never seen a core sample quite like this. I am anxiously awaiting the assay results.”

Figure 1 Drill core with rare earth occurrences

Drill Rig

The Tanbreez Greenland Rare Earth Mine

Figure 2 Drilling program target, the Tanbreez Project, Greenland

The current drilling program will be primarily focused on drill core samples for geological analysis and petrological testing for the conversion of the mineral resource from Inferred to Indicated status, and for the further increase the throughput target from 0.5 million tonnes per annum to 3 million tonnes per annum.

Critical Metals Corp continues to progress its plans to undergo a SK-1300 assessment and move towards conducting a comprehensive feasibility study. Following the drilling program, the Company will commence percussion drilling program to delineate the mineralization in the selected areas, perform twin hole drilling on several targets to comply with QAQC requirements and effectively test the revised geophysical model, further solidifying its development strategy for the project.

Significant progress has already been made regarding the pre-operational activities for the asset. Tanbreez was awarded a key exploitation license four years ago, and extensive studies have been completed. In addition to the 14 drill holes for the program, 414 drill holes and more than 366,000 assays have been conducted, providing a rich database on the deposit's geology, geochemistry and rare earth element distribution. Substantial bulk testing, totaling approximately 709 tonnes, further underscores the asset's significant scale and the depth of the work already completed.

About The Project

Critical Metals Corp currently owns 42% of the Tanbreez Project, which is strategically located in Southern Greenland with access to key transportation routes, and has previously announced plans to acquire a controlling interest. With an estimated resource of 4.7 billion tonnes containing 980 million tonnes of the rare earth mineral eudialyte, Tanbreez is one of the world's largest known rare earth deposits. A notable differentiator for Tanbreez is its sizable concentration of heavy rare earth elements, which constitutes more than 25% of the resource.

Figure 3 Location of the Tanbreez Project and Tenement MIN 2020-54

About Critical Metals Corp.

Critical Metals Corp (Nasdaq: CRML) is a leading mining development company focused on critical metals and minerals, and producing strategic products essential to electrification and next generation technologies for Europe and its western world partners. Its initial flagship asset is the Wolfsberg Lithium Project located in Carinthia, 270 km south of Vienna, Austria. The Wolfsberg Lithium Project is the first fully permitted mine in Europe and is strategically located with access to established road and rail infrastructure and is expected to be the next major producer of key lithium products to support the European market. Wolfsberg is well positioned with offtake and downstream partners to become a unique and valuable building block in an expanding geostrategic critical metals portfolio.

For more information, please visit https://criticalmetalscorp.com/.

Cautionary Note Regarding Forward Looking Statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements include, without limitation, statements regarding the financial position, financial performance, business strategy, expectations of our business and the plans and objectives of management for future operations. These statements constitute projections, forecasts and forward-looking statements, and are not guarantees of performance. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this news release, forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target,” “designed to” or other similar expressions that predict or indicate future events or trends or that are not statements of historical facts. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements.

These forward-looking statements may include statements, among other things, relating to: general economic conditions and conditions affecting the industries in which the Company operates; expansion and other plans and opportunities, including expansion into other strategic assets; and other statements preceded by, followed by or that include the words “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target” or similar expressions.

Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements for many reasons, including the factors discussed under the “Risk Factors” section in the Company’s Shell Company Report on Form 20-F filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 3, 2024 and in the Company’s proxy statement/prospectus, dated December 27, 2023, as supplemented by that proxy statement/prospectus supplement No. 1, dated February 15, 2024, forming a part of Registration Statement on Form F-4 (File No. 333-268970), as amended, which was declared effective on December 27, 2023. These forward-looking statements are based on information available as of the date of this news release, and expectations, forecasts and assumptions as of that date, involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

Critical Metals Corp.

Investor Relations: ir@criticalmetalscorp.com

Media: pr@criticalmetalscorp.com

Photos accompanying this announcement are available at

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FAQ

What is the purpose of Critical Metals Corp's (CRML) drilling program at Tanbreez?

The drilling program aims to evaluate resources, project lifespan, convert mineral resources from Inferred to Indicated status, and increase the throughput target from 0.5 to 3 million tonnes per annum.

How many drill holes and meters are planned for CRML's Tanbreez project?

Critical Metals Corp (CRML) plans to drill 14 holes with a total cumulative length of up to 2,200 meters at the Tanbreez Greenland Rare Earth Mine.

Who is conducting the drilling program for Critical Metals Corp (CRML) at Tanbreez?

The drilling program is being conducted by 60 North Greenland, a Greenland drilling contractor, and supervised by a team of internationally acclaimed rare earths geological experts.

What is the significance of the Tanbreez project for Critical Metals Corp (CRML)?

The Tanbreez project offers potential for reducing Western countries' reliance on China for critical materials needed in clean energy and defense applications, supporting national security.