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MTM Critical Metals Limited (ASX:MTM) (MTM or the Company) has successfully completed the Stage 1 Earn In expenditure on the three exploration licences held by Tevel Pty Ltd (Tevel) in the East Laverton project area. Under the Earn In and Joint Venture agreement (Agreement) between the two companies, MTM has now earned a 51% interest in the licences. MTM has advised Tevel that the Company will now continue with the Stage 2 Earn In under the Agreement.
Commenting on the completion of the Stage 1 Earn In under the Agreement, Managing Director Lachlan Reynolds said:
“MTM has accelerated our exploration program on the Tevel exploration licences at East Laverton, where we have intersected highly encouraging grades and thicknesses of rare earth element mineralisation in broad-spaced aircore drilling at the Pt Kidman prospect.
Our exploration team has now completed several phases of drilling and has successfully confirmed the district-scale exploration potential of the ground for rare earth elements. We are progressing the work program and look forward to continue working with Tevel as the Company continues its exploration of the area.”
Tevel Agreement
The Company has entered into an Agreement with Tevel to explore three exploration licences (the Tenements) that are part of the Company’s East Laverton project (Figure 1). The Company is entitled to acquire up to 75% interest in the Tenements, through a series of staged increments of exploration expenditure.
Having completed the Stage 1 Earn In, through the expenditure of $700,000, the Company has now earned a 51% equity interest in the Tenements and is required to pay a further
$50,000 to Tevel. The Company has confirmed with Tevel that it intends to continue with the Stage 2 Earn In phase, which requires the Company to i) expend a further $1 million over 3 years on the Tenements, and 2) complete a bankable feasibility study within 5 years, in order to earn a further 24% equity in the Tenements.
Exploration on Tevel Tenements
During the Stage 1 Earn In period, MTM has principally completed further soil sampling, aircore and RC percussion drilling (refer to Mt Monger ASX announcements dated 19 August and 17 November 2022, 17 January and 15 May 2023) on the Tenements. The work has successfully confirmed the potential for widespread clay-hosted rare earth element (REE) mineralisation in the weathering profile, derived from underlying gneissic basement rocks.
Further sampling and drilling are planned on the Tenements during the Stage 2 Earn In period in order to increase the confidence in the grade, continuity and extent of the REE mineralisation.
A metallurgical testwork program is also planned to evaluate the leaching characteristics of the REE mineralisation.
Figure 1: Location map of the East Laverton Project showing the location of the three Tevel exploration licences over the Point Kidman prospect area.
Table 1: Summary of Tevel Exploration Licences.
This announcement has been authorised for release by the Board of Directors.
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