May 25, 2022
Megawatt Lithium and Battery Metals Corp. (CSE:MEGA, Not Rated, Koby Kushner) has completed a review of all available data related to two projects, Arctic Fox and Isbjorn, in Northern Territory, Australia, targeting rare earth elements (REEs). The following results were reported from historical sampling at Arctic Fox: 1) nine samples returned anomalous Ce (>1,000 ppm), with up to 3,730 ppm, 2) eight samples returned anomalous La (>500 ppm), with up to 1,870 ppm, 3) six samples returned anomalous Nd (>500 ppm), with up to 1,450 ppm, 4) 12 samples returned anomalous Pr (>100 ppm), with up to 424 ppm, and 5) 13 samples returned anomalous Hf (>100 ppm), with up to 445 ppm. A total of 256 samples have now been taken and analyzed from Crossland Uranium’s (ASX:CUX, Not Rated) surveys, with 138 in the western part of the Arctic Fox project. Notably, both Arctic Fox and Isbjorn were previously explored for uranium, with samples from Arctic Fox returning up to 1,179 ppm U3O8, while samples from Isbjorn returned up to 699 ppm U3O8 (read more). Megawatt’s technical team is expected to make an initial trip to the Arctic Fox and nearby Isbjorn projects in the near term to evaluate site access, conduct sampling work, and devise the next phase of exploration. In our view, Megawatt’s refined focus on these projects comes at the right time and place: market fundamentals have continued to improve for REEs, given that they are key ingredients required for electric motors, and countries are placing higher importance on strengthening their domestic supply chains given that China controls 70-80% of the global REE market. Further, Arctic Fox is contiguous with Arafura Resources’ (ASX:ARU, Not Rated) Nolans Bore REE and uranium project, Power Metal Resources’ (LSE:POW, Not Rated) Selta project, and Isbjorn is within 15km of the Charley Creek REE deposit. Nolans Bore also has a JORC-compliant resource of 56Mt at 162 ppm U3O8 and 2.6% total rare earth oxides, which is capable of potentially supplying 10% of global REEs required for electric motors. Read more
