Untapped Potential of Canada’s Carbonatite-hosted Rare Earths Deposits

Defining the different REE deposits

Before discussing the unique promise of carbonatite-hosted rare earths, it's important to understand the different types of deposits. Resources of REE are mainly associated with four geological environments: alkaline igneous rocks, carbonatites, placer deposits (mineral sands) and ion-adsorption clay deposits. The major categories of REE deposit each contain numerous subcategories, with highly variable mineralization between them. The one thing all REE deposits share in common is that they typically contain a mixture of the 17 REEs, albeit in different concentrations.

Igneous REE deposits

Also known as magmatic deposits, igneous REE deposits are created when molten rock, enriched in REEs, is intruded into the crust or erupted onto the surface as lava. These rocks typically have unusual alkaline geochemical compositions or are a carbonatite that has a mineral assemblage dominated by carbonate minerals. REEs can also occur within pegmatites, associated with lithium and tantalum mineralisation.

Sedimentary REE deposits

Sedimentary REE deposits are typically created by erosion of rocks that contain REE-bearing minerals. These minerals are generally quite hard and resistant to weathering; they can be concentrated by mechanical processes into alluvial or placer deposits.

REEs may also occur associated with sedimentary rocks that form from chemical precipitation (e.g. phosphorites) or where REE-rich groundwater interacts with reactive rocks such as coal.

Ionic REE deposits

Ionic, clay-hosted or regolith-hosted REE deposits typically form as near-surface, horizontal blankets of mineralization through the weathering of rocks such as granites that contain elevated levels of the REE-bearing minerals.

The lure of carbonatite

China contains some of the largest pegmatitic REE deposits in the world alongside extensive ionic clay deposits. However, its most prolific REE deposit is a carbonatite.

Situated within the Inner Mongolia Autonomous Region, Bayan Obo is both the largest rare earths deposit in the world and the second largest global deposit of niobium. A lightweight metal widely used in superconductors, aerospace components, jewelry, electronics and medicine, niobium has been identified as a critical mineral by both Canada and Australia. It's frequently found in close proximity to carbonatite-hosted REE.

Carbonatites are categorized based on the dominant carbonate mineral. The major groups we currently know of are dolomite-carbonatites, calcite-carbonatites and ferro-carbonatites. A fourth group, known as natro-carbonatite, currently occurs in only one known location — the Ol Doinyo Lengai volcano in Tanzania.

Carbonatite-hosted REEs are highly attractive to mining and exploration companies for several reasons. First, as evidenced by Bayan Obo, carbonatite deposits tend to be considerably larger than other REE deposits. They also tend to host high-grade, high-concentration REEs and niobium.

Carbonatite deposits typically have relatively simple mineralogy and are comparatively easier and less expensive to process than many other rare earths sources. Finally, carbonatite deposits frequently contain resources such as copper, uranium and phosphate, which can be recovered during mining and processing to generate additional revenue.

The problem with global rare earths production

China currently dominates the global rare earths market. According to Politico in 2022, the country accounts for 63 percent of all mining operations, 85 percent of rare earths processing and 92 percent of all magnet production. Because of this controlling interest, China is largely free to set prices and tariffs as it sees fit; at several points in the past, it has wielded this influence as a geopolitical weapon.

China's mining sector is also far from sustainable and comes with a heavy environmental price, which the country has been working to curb within its borders. Myanmar's Kachin State, where China has outsourced much of its heavy rare earths production in recent years, contains mines covering a surface area roughly the size of Singapore. In addition to causing extensive deforestation and pollution, many of these mines are unregulated and rife with human rights violations.

Between current global tensions and China's less-than-stellar relationship with sustainability, it is imperative to identify alternative sources of rare earths and niobium. With its extensive rare earths reserves, Canada has the potential to establish itself as a major player in global REE production.

A strong starting point for Canadian rare earths production

At the time of writing, Canada is home to several highly promising carbonatite-hosted rare earths projects.

Australian mineral exploration and development company Mt. Monger Resources (ASX:MTM), for example, has acquired an option over the Pomme project. Situated in Southwest Quebec, this carbonatite-hosted rare earths and niobium project has limited historical drilling that confirmed significant REE and niobium mineralization. These results are promising, particularly given Pomme's close proximity to Montviel — the largest undeveloped carbonatite-hosted REE deposit in North America — owned by Geomega Resources (TSXV:GMA,OTCQB:GOMRF).

Quebec is also home to the undeveloped Oka carbonatite complex and the Saint-Honoré carbonatite complex. The former hosts considerable phosphate reserves in addition to REEs and niobium. The latter is home to the Niobec mine owned by Magris Resources.

Another area of interest is the Strange Lake deposit, which is located in Nunavik, Quebec, and lies on the border between Quebec and Labrador, is another area of interest. The deposit was the subject of a previous collaboration between Memorial University and the Nunatsiavut Government that examined the deposit’s mineralogy and aimed to develop a regional exploration tool for REEs through satellite spectral imaging. Currently operated by Torngat Metals, Strange Lake is now believed to be one of the largest and most important rare earths projects in Canada.

Defense Metals (TSXV:DEFN,OTCQB:DFMTF) is another major player in Canadian REE production. It owns the 4,262 hectare Wicheeda light REE Property, at which an extensive drilling campaign in 2021 and 2022 found deep high-grade REE dolomite-carbonatite. In early March 2023, the company announced that it has updated its 3D geological model of the site in advance of a planned pre-feasibility study.

Commerce Resources (TSXV:CCE,OTCQX:CMRZ) is advancing the Ashram REE deposit in Northern Quebec, which the company claims is the largest monazite-dominant carbonatite-hosted REE resource in North America.

Elsewhere in Canada, Vital Metals (ASX:VML,OTCQB:VTMXF), Canada’s first rare earths miner, commenced mining at the Nechalacho project in the Northwest Territories in 2021. Vital opened a rare earths processing facility in Saskatoon, Saskatchewan, in 2022.

Finally, the Eden Lake complex, located in Manitoba, is another underexplored potential source of REEs.

Takeaway

Carbonatite-hosted REE deposits are among both the largest and most valuable sources of REEs and niobium alike. With the world searching for an alternative to China's market dominance, countries like Canada, with its extensive reserve of carbonatite-hosted REEs, must step in. For investors, this means the country should continue to see significant development in REE exploration and production.

This INNSpired article is sponsored by Mt. Monger Resources (ASX:MTM). This INNSpired article provides information which was sourced by the Investing News Network (INN) and approved by Mt. Monger Resourcesin order to help investors learn more about the company. Mt. Monger Resources is a client of INN. The company’s campaign fees pay for INN to create and update this INNSpired article.

This INNSpired article was written according to INN editorial standards to educate investors.

INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.

The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Mt. Monger Resources and seek advice from a qualified investment advisor.