Many Peaks Gold enters binding agreement to secure right to acquire Odyssey REE Project in Canada

Many Peaks Gold (ASX:MPG) has entered into a binding agreement with incorporated Canadian company Sans Peur Exploration Services to secure an exclusive right to acquire 100% of the Odyssey Rare Earth Elements (REE) Project in Canada.

As part of the option agreement, Many Peaks will be required to spend a minimum of $150,000 on the project during the option period, as well as issue 1.2 million ordinary shares to Sans Peur. It will also be required to grant it a 2.5% net smelter royalty for any minerals from the area in order for Many Peaks to exercise its option to acquire 100% of the project.

The project, located within the Red Wine intrusion complex of central Labrador and around 125km northeast of Churchill Falls community, hosts a mineralise system containing REE group compounds including neodymium (Nd2O3), praseodymium (Pr6O11) (NdPr) among others. It also hosts associated non-REE group metals including Niobium (Nb2O5), and beryllium (BeO).

Previous exploration at the project yielded drill results including 9.3% total rare earth oxides (TREO) including 1.84% NdPr at the Mann 2 West prospect; 5.2% TREO including 1.06% NdPr at Mann 2 Central; 4.2% TREO including 0.92% NdPr at Mann 2 East; and 2.6% TREO including 0.64% NdPr at the Michelin prospect.

Commenting on the potential acquisition, Many Peaks Gold Executive Chairman Travis Schwertfeger says: “The Odyssey REE Project provides a highly prospective position with several walk-up drill targets defined within a district host to known high-grade TREO mineralisation and demonstrating scale for bulk tonnage potential.

“The Odyssey REE Project provides a highly prospective position with several walk-up drill targets defined within a district host to known high-grade TREO mineralisation”

The opportunity identified by MPG to diversify into the critical minerals sector has been secured as part of the company’s ongoing business development activity, focused on delivering future growth by generating a pipeline of projects.

Our board and management team has significant North American operational and technical experience providing strong synergies for advancing projects in the tier 1 jurisdictions of both Queensland and Labrador.

Our team will continue working towards generating depth and diversity for a portfolio of mineral exploration assets to underpin growth and value add to the company through cost effective mineral exploration and discovery.”

Many Peaks has $4 million cash at hand to ‘aggressively’ work towards advancing key critical mineral projects complementary to existing copper-gold assets in Queensland.

The Odyssey  project consists of 2 mineralised horizons known as the Mann 2 and Michelin prospects. The Mann 2 corridor is up to 2.6km long across the project area along the deformed margin of the perkaline intrusion which is believed to host late stage lenticular syenite bodies, and TREO grades over 1% at surface along more than 2.2km of the 2.6km extend of the litho-structural horizon.

Mineralisation here was identified on up to 90m widths across mapped lithology at surface, however the company notes there is no continuous surface sampling or drilling across the zone to define continuity of mineralisation across the mapped widths. MPG also says mineralisation at Mann 2 remains open along strike and adjacent to the mapped corridor due to shallow glacial till cover in the area.

The Michelin prospect is located 1.7km north of the Mann 2 mineralised corridor and hosts TREO grades of over 1%, as demonstrated in previous sampling along more than 900m of strike extent which remains open in all directions. MPG reports both prospects comprise an aggregate 3km to 3.5km strike extent of REE mineralised horizons.

The company says initial planned work at the Odyssey Project will be to acquire higher resolution imagery and topographic control, which will be sourced following a review of products available from satellite imagery or drone-based platforms.

Many Peaks will also be conducting field work programs starting in the 2023 field season, which will include systematic channel sampling, rock chip sampling, and prioritising targets for an initial drill test to better establish widths and continuity of the mineralised zone, as well as acquiring material for initial mineralogical studies for the project area.

The company expects the results from these initial activities will provide it with the technical information required to support a decision to proceed with an acquisition of the project, and meet the conditions required to exercise the option to acquire the project if MPG elects to do so.

Many Peaks Gold is an Australian gold mining company focused on its portfolio of projects in Queensland, and the province of Labrador in Canada. These projects include the Mt Weary Gold, Rawlins Copper-Gold, and Monal Gold projects in Queensland, as well as the Odyssey REE Project in Labrador.

Images: Many Peaks Gold Ltd
Written By Harry Mulholland
Hailing from the Central Coast region of NSW, Harry is a passionate journalist with a background in print, radio and ESG news. When not bashing away on his keyboard, he can be found brewing a coffee or playing with his dog.