DMC (ASX:DMM) inks acquisition deal for Guinean rare earth-uranium
June 24, 2024DMC Mining has made binding agreements to fully acquire two Guinean assets, the Firawa Uranium-Rare Earth Elements-Niobium project in Guinea’s southeast and a Labé uranium asset in the West African nation’s north.
Firawa comes with an established 27.1 million tonne JORC inferred resource grading at 295 parts per million triuranium octoxide.
The project features a carbonatite-style deposit that, based on scale potential and historic grades, DMC believes could become one considered globally significant.
In drilling of 154 holes over more than 12,000 metres, mineralised uranium and rare earth zones have been shown to extend more than 3 kilometres in mineralisation that remains open at depth, eastward, and to the west.
Paired results like 14m at 471 parts per million triuranium octoxide alongside 45m at 32,900ppm total rare earth oxide show a positive correlation, with sampling efforts so far demonstrating an average neodymium-praseodymium to TREO ratio of 28 per cent.
The area also contains anomalous concentrations of niobium throughout, showing as high as 22,784ppm gradings in rock chips and high-grade focused zones up to 5m at 5,859ppm amid broader, lower-grade zones with the drill.
The Labé project is less advanced but notably sits along strike from Haranga Resources (ASX:HAR) and its 16.11 million pound resource recently upgraded at Saraya.
Now set to transition to Managing Director, DMC Executive Chair David Sumich said the proposed Firawa acquisition fit well into the company’s critical mineral development strategy.
“As well as having a mineral resource estimate reported in accordance with the JORC (2012) code, including over 12,000 metres of historic drilling, we are acquiring an oxide project that contains nearly 200 high-grade rare earth intersections,” he said.
Sumich flagged the significant exploration already in the books would allow DMC to hit the ground running, saying the Perth-based company looked forward to getting on the ground immediately after completing the transaction.
“The Labé project will complement our exploration of the Firawa project and will be an additional asset to our growing portfolio of uranium-based assets,” he said.
“We are also fortunate to be able to secure the service of a very highly experienced executives, Mr Michael Minosora, Mr Sam Randazzo and Dr Andrew Wilde to the board as we make this transition.”
A general shareholder meeting is expected to go ahead in early August to seek approval for the acquisitions, DMC board and MD appointments, and a $5 million capital raising.
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