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Meteoric soars on rare earths acquisition

Meteoric rare earths

Meteoric Resources has added a Tier 1 ionic clay rare earths project to its portfolio, sending its stock through the stratosphere.

The Caldeira project in Brazil has had more than 1300 shallow auger drill holes completed for more than 13,000m.

Drilling across six licenses returned a host of high-grade total rare earth oxide (TREO) intersections. Highlights include 20m at 8924 parts per million (ppm) TREO ending in 9945ppm TREO, 10m at 8810ppm TREO ending in 1942ppm TREO, and 12m at 8367ppm ending in 5829ppm TREO.

Rare earths mineralisation commences from surface and remains completely open at depth with 85 per cent of the 1311 auger holes ending in grades above 1000ppm TREO. No drilling has been completed below 200m.

Meteoric is fully funded to rapidly define Caldeira with the final $US17.5 million payment of its sale of the Juruena gold project in Brazil due in March 2023.

“The Caldeira project is a 15km scale, ultra-high-grade ionic clay deposit which is completely open at depth and it has the potential to host large, high-grade rare-earth element-ionic clays,” Meteoric director Andrew Tunks said.

Detail of rare earths-enriched clay-zone sample.

Tunks said past exploration found mineralisation in some holes extended from surface down the entire length of the hole, with the deepest hole ending at 20m.

“The depth of the deposit is at this stage unknown and Meteoric is preparing to mobilise a diamond drilling team to site in January 2023 to commence further exploration to better understand the Caldeira project’s scale and depth,” he said.

“The distribution of the rare earth elements at Caldeira is enriched in heavy rare earth elements (HREE). Additionally, the sample results to date are strongly enriched in the magnet rare earths of terbium, dysprosium, praesidium and neodymium, which make up more that 22 per cent of the total rare earth elemental composition.

“These four elements will be the magnetic powerhouse of the green energy transition, crucial if we are to reach global CO2 reduction targets.”

As part of its binding agreement with Togni S/A Materiais Refratários, Meteoric has acquired the exclusive rights to explore for and develop all rare earth elements located on Caldeira’s 30 mining licenses.

The company has paid $US200,000 for an exclusivity period until April 6 2023 to allow for due diligence.

Following the due diligence period and the negotiation of binding transaction documents, Meteoric will pay $US20 million, including $US5 million on completion and $US5 million each year for three years.

Meteoric’s share price had skyrocketed more than 90 per cent on Friday December 16 following the announcement. The company was trading at $0.030 at 2.00pm AEDT on Friday and had risen even further to $0.049 at 10am AEDT on Tuesday.

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