Mt Monger Resources (ASX:MTM) has entered into a binding option agreement to acquire a 100% interest in the ‘advanced’ carbonatite Pomme rare-earth-element-niobium (Nb) Project in Québec, Canada.
The company says it has entered into the agreement with Geomega Resources (TSXV:GMA) to acquire the project, which has delivered ‘exceptional’ results from limited drilling that demonstrate the project is an ‘extremely prospective’ exploration target.
The project is situated only 7km from the ‘world-class’ Montviel carbonatite REE-Nb deposit owned by Geomega Resources, which currently has a total indicated and inferred resource of 266 million tonnes (Mt) @ 1.46% total rare earth oxide (TREO) and 0.14% Nb2O5, as well as a similar geology and mineralisation to Pomme.
Diamond drilling (DD) is expected to begin in May 2023 following the spring thaw.
Key historic results completed in 2012 include hole MVX-12-01 with 508.3m @ 0.43% TREO, 413 parts per million (ppm) niobium pentoxide (Nb2O5) and 1.48% phosphorus pentoxide (P2O5) from 73.7m, including 7.5m @ 1.28% TREO, 499ppm Nb2O5 and 1.43% P2O5 from 319.5m.
Addressing the acquisition, Mt Monger Resources Managing Director Lachlan Reynolds says: “We are very excited to have executed this option agreement to acquire the Pomme project in the Province of Québec. This is a further strategic investment by the company into the rare earth element sector, which we believe has very positive long-term demand outlook due to the importance of rare earth elements and niobium to the global clean energy transition and the push by governments worldwide to expand and diversify their supplies.
The project has excellent geological potential for the discovery of a resource and is a perfect fit with the company’s strategy to explore and develop high-quality rare earth element projects that can ultimately supply critical metals to the rapidly growing global EV market and other decarbonisation technologies.
“The project has excellent geological potential for the discovery of a resource and is a perfect fit with the company’s strategy”
Pomme is a known carbonatite intrusion and the limited diamond drilling completed more than a decade ago has confirmed the presence of extensive rare earth element and niobium mineralisation with globally significant intercept widths.
The project is located only seven kilometres from the world-class Montviel rare earth and niobium deposit which is similarly associated with a carbonatite intrusion. The proximity of Pomme to Montviel gives us confidence about both the potential for discovery of a resource and a huge strategic advantage with respect to operational logistics and the opportunity to be part of a much larger future mining development.
It is rare that a project with the outstanding early drill results and this type of significant geological potential can be secured at the pre-resource exploration stage. This is a highly positive outcome for Mt Monger and we look forward to commencing an exploration program, with the objective of defining a new rare earth element resource in Québec.”
The company also notes it has executed a binding option agreement with the shareholders of Critical Element Exploration (CEE) in order to obtain the option to purchase 100% of the shares in CEE. CEE is in turn party to a separate binding option agreement to obtain a 100% interest in the Pomme claims currently held by Geomega.
Key terms under the agreement to obtain CEE shares include Mt Monger being required to pay a non-refundable $20,000 option fee, as well as a separate $30,000 cash payment and $200,000 worth of fully paid shares being delivered to CEE once the MTM-CEE option is complete.
Meanwhile, it is expected that, subject to a separate services agreement to be negotiated and agreed upon between parties, Geomega will continue to provide technical exploration services to Mt Monger on a contractual basis for the exploration of the project.
As of 9am AWST, Mt Monger Resources’ share price had increased by 33.333%.
Mt Monger is an ASX-listed exploration company focused on searching for REE, gold, lithium, nickel, and base metals in the Goldfields and Ravensthorpe districts of Western Australia, as well as the Abitibi region of the Province of Québec in Canada. The company currently holds over 4,500km-square of tenements within 3 prolific and ‘highly prospective’ mineral regions in Western Australia, and has an option to acquire a 100% interest in 2,400 hectares of exploration rights in Canada.
The Pomme project is situated in the Province of Québec, Canada upon claims located on category II Land of the Cree first nation of Waswanipi and is surrounded by ‘excellent’ infrastructure comprising existing road access, local services, and proximity to a hydro-electric grid. The project also boasts access to an existing geological team with history of work at the Montviel deposit and expertise in managing exploration in the area.
Images: Mt Monger Resources Ltd
