Mt Monger Resources has entered into a binding option agreement to acquire the Pomme REE-Nb project in Quebec, Canada from TSX.V listed Geomega Resources.

The project is a known carbonatite intrusion with exceptional results from limited drilling, showing enrichment in rare earth elements (REE) and niobium (Nb) and is considered an extremely prospective exploration target.

Diamond drilling in 2012 returned exceptionally thick mineralised intersections, including:

  • 508.3m at 0.43% TREO, 413ppm Nb2O5 and 1.48% P2O5, from 73.7m depth; and
  • 478.1m at 0.12% TREO, 340 ppm Nb2O5 and 2.14% P2O5, from 25.9m to EOH.

Pomme is also adjacent to the Montviel REE-Nb deposit (owned by Geomega), that has a defined total indicated and inferred resource of 266 Mt at 1.45% TREO and 0.14% Nb2O5.

Mt Monger (ASX:MTM) expects that, pursuant to a separate services agreement to be negotiated and agreed between the parties, Geomega will continue to provide technical exploration services on a contractual basis for the exploration of the project.

Positive long-term demand outlook for rare earths

The company considers the Pomme project to be a compelling opportunity for the discovery and future delineation of a REE and niobium resource – both elements which have been designated as critical minerals in both Australia and Canada principally due to their importance in the global clean energy transition and in the manufacture of advanced technologies.

“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,” MD Lachlan Reynolds said.

“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.

“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.”

Mt Monger ASX MTM
Location of the Pomme Project in Quebec, Canada. Pic: Supplied

Excellent jurisdiction for exploration

Quebec is a well-known and consistently highly rated operating jurisdiction for exploration and mining.

The project is easily accessible by road and work there can be supported year-round from local towns and MTM says excellent relationships have been established with the local Cree First Nations community by previous explorers in the area.

“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,” Reynolds said.

“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 Quebec.”

The mineralisation also has low average uranium and thorium content, meaning low radioactivity – which is a particular advantage for any future permitting of mining and processing operations.

A fieldwork program, including diamond drilling expected to commence after spring thaw in May 2023.

 

 

 

 

This article was developed in collaboration with Mt Monger Resources Limited, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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