Nov 6, 2024

Critica Limited Hits 67m @ 3,074 ppm TREO at Jupiter, Brothers REE Project, Western Australia

Introduction:

Critica Limited (ASX: CRI) has reported significant rare earth element (REE) intercepts from resource drilling at its Jupiter discovery within the Brothers REE Project in Western Australia, highlighted by 67m at 3,074 ppm Total Rare Earth Oxides (TREO).

Drill Results:

67m @ 3,074 ppm TREO (record-breaking intersection, hole ended in mineralization) [JPAC088]
43m @ 2,942 ppm TREO (including 28m @ 3,595 ppm TREO) [JPAC079]
43m @ 2,236 ppm TREO (including 20m @ 3,438 ppm TREO) [JPAC085]
32m @ 2,399 ppm TREO (including 8m @ 3,957 ppm TREO) [JPAC090]
51m @ 2,116 ppm TREO [JPAC068]

Project Overview:

The Brothers REE Project is located in the Mt Magnet and Yalgoo mining district of Western Australia. Jupiter, the flagship discovery, covers approximately 40 square kilometers. The project benefits from significant nearby infrastructure, including proximity to a bitumen highway, local labor centers, the Port of Geraldton, and the mid-west gas pipeline.

The broader Brothers Project encompasses a strategic landholding of approximately 1,350 km2 of granted tenure with an additional 630 km2 under application. Jupiter hosts consistent, high-grade rare earth mineralization over the entire project area, with broad zones grading over 2,000 ppm TREO typically occurring within larger mineralized envelopes.

Program Details:

The current drilling program was designed to increase drilling density in high-grade zones of Jupiter to 250m x 250m spacing. This infill drilling has reaffirmed large and consistent zones of mineralization grading over 2,000 ppm TREO. Assays are pending for the remaining 163 holes of the resource infill drilling program. Seven diamond core holes were also drilled to provide density measurements and geological data for the upcoming maiden resource estimate.

Understanding These Results:

The reported intersections demonstrate consistent, high-grade rare earth mineralization over broad widths. The record-breaking 67m @ 3,074 ppm TREO intercept ended in mineralization at 99 meters depth, indicating potential for deeper mineralization. Magnet rare earth oxides (MREO) make up an average of 23% of the material grading over 1,000 ppm TREO.

Importantly, thorium and uranium content remains consistently very low, which is favorable for potential future processing. The continuity and grade of mineralization support the potential for Jupiter to host one of the largest clay-hosted rare earth discoveries in Australia.

Management Commentary:

Philippa Leggat, Managing Director:

“We chose to increase drilling density in the high-grade zones of Jupiter to further improve confidence in the continuity of this mineralisation, ahead of our maiden resource estimate for the Brothers Project. This set of assay results have readily demonstrated this continuity. “It’s also incredible to see our flagship project delivering another record-breaking drill intersection, this time being 67m @ 3,074 ppm TREO. This phenomenal hole (JPAC088) ended in mineralisation – even after using all drill rods we were still in rare earth mineralisation at 99 metres.

“Our outstanding technical team continue to demonstrate that Jupiter hosts consistent, high-grade rare earth mineralisation over tens of kilometres confirming the potential of Jupiter and the Brothers Project to host one of the largest clay-hosted rare earth discoveries in Australia.

“With aircore and diamond drilling complete, and final assays pending, we are well positioned to provide a detailed and high-quality dataset to our independent geologists for preparation of our maiden resource estimate. We also have several laboratories working on all aspects of our comprehensive metallurgical program,with successful beneficiation outcomes being our first goal.

“Despite existing cyclical pricing challenges in the rare earth market we have recently seen a meaningful uptick in the NdPr price, affirming our confidence that the long-term fundamentals of the rare earth market remain strong. The world is going to continue to use motors – they need permanent magnets which require rare earths. Combustion engines, electric engines, drones – the list of uses for permanent magnets is long and their uses are pervasive. Being in Australia, we are also well-positioned to benefit from the array of geopolitical factors influencing the global rare earth supply chain.

“Critica’s strategy is to take advantage of the rare earth price cycle by rapidly advancing our flagship asset in what we believe to be a temporarily low price environment. We are well-funded and focused on the ongoing addition of intrinsic value to Jupiter and the Brothers Project.

“It’s an exciting phase of the project. Our objectives are clear and we look forward to updating shareholders as we continue to achieve key milestones.”

Next Steps & Catalysts:

Critica is awaiting final assays from the remaining 163 holes of the resource infill drilling program at Jupiter. The company is on track to release a maiden resource estimate by the end of 2024.

A comprehensive metallurgical program is underway, with successful beneficiation outcomes being the first goal. The company is well-funded and focused on rapidly advancing the project to take advantage of the current rare earth price cycle.

Commodity Outlook:

Despite cyclical pricing challenges in the rare earth market, Critica notes a recent uptick in NdPr prices. The company remains confident in the long-term fundamentals of rare earth demand, driven by the increasing use of permanent magnets in various applications including electric motors and drones. Critica's Australian location is seen as advantageous given geopolitical factors influencing the global rare earth supply chain.

Conclusion:

The latest drilling results from Jupiter continue to demonstrate the potential for a large-scale, high-grade rare earth deposit. With consistent mineralization over tens of kilometers, low thorium and uranium content, and favorable infrastructure, Critica is well-positioned to push onwards. The upcoming maiden resource estimate and ongoing metallurgical work represent key near-term catalysts for the company.

Sources:

CRI Drill Results Announcement

Additional Figures:

Australia

ASX

Gold

Nov 11, 2024