MRG Metals applies for rare earth elements and uranium exploration licences

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MRG Metals applies for rare earth elements and uranium exploration licences

3:29 CAT | 12 May 2022

Map of the location of MRG’s Rare Earth and Uranium (10999 L, 11000 L and 11002 L) Exploration Licence Applications (ELA’s) in relation to the port city of Beira. [Source; MRG Metals]

The Australian based mining company MRG Metals announced on Wednesday that it has applied for three exploration licences for Rare Earth Elements and Uranium deposits about 150 kilometres west of the central Mozambican coastal city of Quelimane.

In its announcement to the Australian Securities Exchange, MRG Metals explained that the proposed project will explore a number of hard-rock and sedimentary targets following positive signs from radiometric spectrometer data collected from an airborne geophysical survey. Shares in MRG Metals on the Australian Securities Exchange jumped by 13 per cent following the announcement.

The applications for exploration licences are currently being assessed by the Mozambican authorities and the company stated that it is ready to commence field exploration as soon as the applications are granted.

Amongst the minerals that the company hopes to find in economically viable quantities is Monazite which could contain Rare Earth Elements such as Thorium.

According to the company’s chairperson, Andrew Van Der Zwan “the successful submission of the exploration licence applications that cover Rare Earths and Uranium is a very important step for MRG Metals in our forward-looking strategy”. He noted that the new licences will diversify the company’s portfolio and give it access to the growing Rare Earth and Uranium markets.

He pointed out that “Mozambique as an investment destination is a fantastic country” and added that the company has an excellent local team. The company is also developing a heavy mineral sands project in the southern Mozambican province of Gaza.

Rare Earth Elements [REE]are a group of 17 metals, described as “light” or “heavy” depending on their position in the periodic table of elements. They have many high technology applications in, for example, aerospace components, lasers, superconductors, and magnets.

ASX ANNOUNCEMENT11 May 2022

MRG APPLIES FOR 3 NEW RARE EARTH ELEMENT (REE) AND URANIUM EXPLORATION LICENCES IN MOZAMBIQUE

Key Highlights

•Successful submission of 3 Exploration Licence Applications (ELA’s) over a high potential Rare Earth Element (REE) and Uranium (U) project in Mozambique

.•The ELA’s are situated approximately 780 km North-East of MRG’s existing Heavy Mineral Sands (HMS) projects at Corridor Sands (tenements 6620 L and 6621 L) and 230 km North -Northeast of the port city of Beira (refer Figures 1 and 2). •The project will explore a number of both hard-rock and sedimentary REE and U targets associated with primary granitic sources in high-grade metamorphic gneiss within the Mozambique Metamorphic Province and the adjacent sedimentary sequences of the Mozambique Basin sediments.

•The project was generated as a result of the following review:

Radiometric spectrometer data of the regional national airborne geophysical survey which, in conjunction with regional geological maps, shows intense anomalism in both the metamorphic (primary) and sedimentary (secondary) terrains that are formed from them (refer Figures 3 and 4), and

A 2014 report on historical reconnaissance work done in the target area which highlighted the presence of Monazite in samples (refer Table 1), with Thorium (Th) grades as high as >1,000 ppm Th in a soil and heavy mineral panned concentrate sample and 559 ppm Th in a rock sample from within the ELA’s (refer Table 2).

•The ELA’s are currently under review by the relevant government departments. MRG is ready to commence field exploration as soon as the applications are granted.

•Upon grant, these REE and U projects will both grow and diversify the commodity spread of MRG’s exploration portfolio in Mozambique.

MRG Metals Chairman, Mr Andrew Van Der Zwan said: “The successful submission of the ELA’s that cover Rare Earth and Uranium is a very important step for MRG in our forward looking strategy. Whilst we remain committed to moving our HMS projects to development, with 3 significant Mineral Resource Estimates released to date, these new ELA’s diversifies our portfolio, providing us exposure to the both the growing Rare Earth and Uranium markets.

We have an excellent local team involved in the continued development focus of our HMS resources at Corridor and will have spare capacity to expand our exploration program in the highly prospective areas in Mozambique. Mozambique as an investment destination is a fantastic country in which we have already achieved success at our HMS portfolio and we look forward to now expanding that success with these new Rare Earth and Uranium ELAs. We will be ready to commence an exploration program on the new licenses when they are granted.This evolution of our activities in Mozambique provides multiple opportunities for investors. Firstly, to access a Company that has already identified a significant resource and is currently determining the economic potential via a scoping study. Secondly, MRG is continuing exploration activities within its HMS portfolio which may provide an upgrade to the existing HMS resource (and hence add to the economics). Thirdly, the excitement of new green field exploration targeting highly desired minerals in the Rare Earth and Uranium space.”