London-listed Altona Rare Earths has reported the discovery of high-grade mineralisation at its Monte Muambe rare earths and fluorspar project, in Mozambique, with concentrations up to 232 g/t gallium.

The company notes high-grade gallium intercepts observed at Fluorite zone and Target 6, up to 232 g/t gallium, with the best intercept, MM039, from surface to 100 m at 77 g/t gallium, including 14.89 m at 141 g/t gallium.

The company explains that gallium is a rare and highly sought after strategic metal whose price has seen recent increases in the context of a trade war between China and the US.

Altona says the presence of gallium associated to rare earths could change the economics of some of the rare earths orebodies at Monte Muambe.

Gallium is a rare metal usually extracted as a by-product from zinc and bauxite ore and is used in a range of electronic and high-technology applications such as radars, light diodes and semiconductors.

Gallium is considered a strategic raw material by several jurisdictions including the EU, with China having a quasi-monopoly on its production, says Altona.

The company notes that the price of gallium is currently about $250/kg, adding that China’s recent ban of gallium and germanium exports to the US has propelled gallium to its highest price since 2011, at $585/kg in December 2024.

The price shift in gallium, and recent discoveries of high-grade gallium associated to rare earths in carbonatites, has prompted Altona to review its drilling data for this metal.

Gallium is one of the trace elements which were analysed by Intertek Laboratories in the course of the preparation of its rare earths mineral resource estimate.

Several high-grade gallium intercepts were noted in diamond drilling holes MM039 and MM040, with grades up to 232 g/t gallium.

Hole MM039 is located at the Northern End of the Fluorite zone and also contains high-grade rare earths and fluorspar intercepts. Altona says it is noteworthy that gallium mineralisation is continuous along the entire length of the hole.

Hole MM040 is located on Target 6, which has identified high-grade rare earths mineralisation but has seen relatively little drilling so far in comparison to Target 1 and Target 4.

Altona says this discovery could potentially change the economics of some of the rare earths orebodies at Monte Muambe, in particular Target 6, by providing an additional valuable by-product.

The lateral extension of gallium mineralisation is unknown and will be assessed as part of the next field work campaign.

The company says it will now check the potential recoverability of gallium, starting with establishing the exact mineralogy of gallium mineralisation, which is presently unknown.

The company will also immediately start reviewing the Monte Muambe soil sampling database, which includes first-pass XRF gallium assays, to identify any possible gallium anomalies in soil.

SCOPING STUDY PROGRESS

Altona confirms that the fluorspar samples have been delivered to Peacocke & Simpson’s laboratory, in Zimbabwe, for gravity separation and flotation tests, which are under way.

The company explains that the delay in the delivery was the result of logistical difficulties caused by post-election instability in Mozambique, which has now subsided.

Results from this testing are expected during the course of April.

"Carbonatites systems typically host a wide range of minerals. Monte Muambe is no stranger to this, with the presence of rare earths and fluorspar.

“The discovery of gallium mineralisation in parts of the carbonatite intrusion that have seen less exploration so far is a positive development for us and underpins the potential for additional discoveries at Monte Muambe,” says Altona CEO Cedric Simonet.

"While current work on the potential for short-term fluorspar production continues, we will initially carefully assess the possibility of recovering gallium as a by-product of rare earths and/or fluorspar, and the potential extent of gallium mineralisation at surface level," he adds.