Summit Minerals (ASX: SUM) has expanded its Equador niobium and tantalum project in northeast Brazil with the acquisition of a 2km² tenement directly east and north of the project from RTB Geologia and Mineracao.
The newly acquired tenement has existing outcropping pegmatites that have returned promising results, as well as several small-scale artisanal mines, which are known to be associated with niobium and tantalum occurrences.
Niobium and tantalum are transition metals that are almost always found together in nature. According to the United States Geological Survey (USGS), the steel industry uses nearly 80% of the world’s produced niobium to manufacture high-strength low-alloy steels. Tantalum stores and releases energy, which is why the electronics industry consumes more than 50% of the world’s production.
The agreement with RTB Geologia and Mineracao will see Summit paying A$50,000 cash and issuing 800,000 ordinary shares in the company. Half of the shares will be escrowed for six months from the completion date, Summit said.
The newly acquired tenement has existing outcropping pegmatites that have returned promising results, as well as several small-scale artisanal mines
“This is another exceptional acquisition for the company to add areas of geological significance which have proven results,” managing director Gower He said in a statement. “This project just continues to amaze us on its potential and areas of growth.”
As part of due diligence analysis, the company collected rock chips which indicated grades similar to the existing Equador project results.
The results include 42.93% niobium pentoxide, 11.39% tantalum pentoxide, and 33,310 parts per million (ppm) partial rare earth oxides (PREO); and 21.21% niobium pentoxide, 79.49% tantalum pentoxide, and 199,150ppm PREO.
The rare earths and niobium-focused explorer has also completed a bulk sampling program to provide a sufficient representative sample for the metallurgical test program.
This will assess the ability to create economical niobium and tantalum concentrate and assist in driving the decisions around the next stages of the development plan for the overall project, Summit said.
Outside Brazil, Summit Minerals is also engaged in exploration activities in Canada and Western Australia.
Shares in the company spiked on the news, closing 5.77% higher on Tuesday at A$0.28 each, which leaves it with a market capitalization of A$23.19 million ($16m).
