Biden officials make last-ditch push for Greenland mining investment
Greenland contains large deposits of most of the minerals considered critical by the US Geological Survey.
Critical Metals Corp (Nasdaq: CRML) says drilling at its Tanbreez project in southern Greenland has led to the discovery of one of the world’s highest concentrations of gallium, further demonstrating the value of what is already a world-class rare earth asset.
By total resource count, Tanbreez is currently ranked the largest rare earth deposit in the world at 28.2 million tonnes of total rare earth oxides (TREO), contained within 4.7 billion tonnes of material. This resource is expected to contain over 27% heavy rare earth elements (HREE), which carry higher value than light rare earth elements.
The gallium discovery follows initial analysis of the recently completed drilling at Tanbreez, leading to the identification of four high-grade zones (Unit Zero, Base of the Kakortokite, EALS and Area G). These zones, Critical Metals says, are expected to play a significant role in optimizing its mining operations and increasing throughput. Tanbreez is currently licensed for 500,000 tonnes of material per year.
Of the four zones, the company highlighted assay results from the EALS zone, which contains a large number of pegmatites with grades exceeding 5% ZrO2 (zirconium dioxide) and more than 2% REO (rare earth oxides). Notably, the percentage of HREEs within the rare earth fraction ranged up to 40.8%.
Also of importance is the high concentration of gallium discovered at Area G, with values reaching up to 147 parts per million (ppm) Ga2O3 (gallium oxide). This zone spans over 1 km² and contains extensive late-stage pegmatites.
“The results from our drilling program compare favorably with other recent results that have been announced to the market and we look forward to unlocking the full potential of this transformational asset,” stated Critical Metals chairman and CEO Tony Sage.
The discovery of gallium, Sage added, reinforces the company’s vision to support the production of defense applications in the Western world. It now plans to investigate the mineralogy of the gallium in the Area G zone and assess its potential as a viable byproduct.
Currently, approximately 98% of the world’s gallium production is sourced from China, where it is primarily a byproduct of bauxite mining. However, the Chinese government last year imposed export licensing controls on the metal, which would significantly impact the global supply moving forward.
Certain South American bauxite deposits can contain up to 80 ppm of Ga2O3, Critical Metals noted. It added that the growing gallium market, which is expanding at an annual rate of approximately 20%, presents a valuable opportunity for the company.
Despite the gallium discovery announcement, shares of Critical Metals traded 3.4% lower on Tuesday morning at $6.25 apiece, for a market capitalization of $543.3 million.
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