Impact: Positive
Critical Elements announced initial results from the first two holes of the recently completed 31-hole (3,670m) winter 2024 drill program at the Rose West discovery at its 100%-owned Rose project in Quebec. Drilling confirmed the high-grade Li2O mineralization discovered in grab samples ~8km to the west of the Rose deposit (read notable), with highlight intercepts of 1) 1.61% Li2O and 135ppm Ta2O5 over 6.9m, incl. 2.17% Li2O over 4.3m (RD-24-01), and 2) 1.00% Li2O and 285 ppm Ta2O5 over 8.65m, incl. 1.34% Li2O and 376 ppm Ta2O5 over 4.4m (RD-24-02). Assays for the remaining 29 holes are pending. We view this news positively, as drill confirmation greatly increases the confidence in the discovery and the magnitude of mineralization. The presence of high-grade tantalum further increases the potential for this discovery to increase the LoM of the Rose Li-Ta project, where average tantalum 20% concentrate production of 580 tpa is estimated to lead to a 10% reduction in the total operating cost as a credit. Meanwhile, management’s focus remains on its review of strategic partner and financing options to develop the Rose project ahead of an anticipated final investment decision in H2/24.
