Northern Minerals Ltd (ASX:NTU) has launched a strategic review of its business holdings and activities after appointing new chair Nick Curtis to the board, temporarily pausing a planned feasibility study for the Browns Range Heavy Rare Earth Project in Western Australia in order to include it in the review process.
The company closed the quarter with A$11.1 million in cash, having expended A$3.2 million over the period in operating activities, leaving the company just over three-quarters in funding remaining.
Operational highlights
Northern Minerals explored the Browns Range project with 8,751 metres of reverse circulation (RC) drilling and 2,047 metres of diamond drilling during the quarter.
The first batch of assays the for Cyclops, Banshee and Rockslider targets were received in December and the company says these results have demonstrated the prospectivity of the three targets, with best results including:
- 103 metres at 0.32% total rare earth oxides (TREO) from 15 metres at Rockslider;
- 15.65 metres at 1.83% TREO from 24.35 metres downhole, including 5.40 metres at 4.48% TREO from Cyclops; and
- 14 metres at 0.50% TREO from 44 metres at Banshee.
The company believes initial results at the Banshee target warrant further investigation, to be followed-up with a second phase of drilling in 2022.
Corporate highlights
Northern Minerals received A$1.4 million in revenue from sale of product through its test work at the Browns Range Pilot plant.
Heavy rare earth pricing continues to rise. Dysprosium prices have increased from US$297/kilogram (kg) at the start of 2021 to a current price of US$471/kg.
Terbium prices have increased from US$1093/kg at the start of 2021 to a current price US$2,033/kg. Dysprosium and terbium account for approximately 70% of the revenue received for Northern Minerals’ product.
The company also received a A$4.3 million tax refund as part of the Australian Taxation Office’s Research and Development tax offset.
About Northern Minerals
Northern Minerals is positioned to become one of the few producers of heavy rare earth element dysprosium via production from the Browns Range Heavy Rare Earth Project in Western Australia.
Through the development of this flagship project, Northern Minerals aims to build the operation into a notable global producer of dysprosium outside of China.
The project is 100%-owned by Northern Minerals and has several deposits and prospects containing high-value dysprosium and other heavy rare earths, hosted in xenotime mineralisation.