Eclipse Metals Ltd reports significant progress in its Greenland rare earth projects, including access to historic drill cores and positive resource estimates, while advancing towards mining licenses and applying for EU strategic funding.
- Access granted to 19,000m of historical drill core from Ivigtût for resource expansion
- Inferred mineral resource estimate of 1.18 million tonnes at 6,859 ppm TREO at Grønnedal
- Positive environmental and social impact assessments progressing towards mining licenses
- Application submitted for EU Critical Raw Materials Act strategic project funding
- Negotiations underway for Northern Territory uranium assets with offers under review
Historic Drill Core Unlocks New Potential
Eclipse Metals Ltd (ASX: EPM) has made a pivotal stride in its Greenland projects by gaining access to approximately 19,000 metres of historical diamond drill core from the Ivigtût area. These cores, dating back to the 1940s, are being reanalyzed in a European laboratory to extend the analytical data and potentially expand the current resource estimations. This move strategically leverages existing data to reduce costly new drilling while enhancing geological understanding.
Robust Resource Estimates at Grønnedal
The company reported an inferred mineral resource estimate (MRE) of 1.18 million tonnes grading 6,859 ppm total rare earth oxides (TREO) at its Grønnedal project. This resource, defined to a shallow depth of 9.5 metres, remains open in all directions, suggesting significant upside potential. The carbonatite intrusive hosting the mineralisation is extensive, with geophysical data indicating depths exceeding 500 metres. The exploration target extrapolated to 50 metres depth suggests a potentially substantial resource, though further drilling is required to confirm this.
Environmental and Regulatory Progress
Eclipse has advanced environmental and social impact assessments (EIA and SIA) in collaboration with Greenlandic authorities, receiving positive feedback from the Danish Centre for Environment and Energy and the Greenland Institute of Natural Resources. These assessments are critical steps toward securing mining licenses for the Ivigtût and Grønnedal prospects. The company has completed water and seaweed sampling to benchmark environmental conditions, demonstrating a commitment to responsible development.
Strategic EU Funding Application
In alignment with its Greenland projects’ strategic importance, Eclipse submitted an application for funding under the European Union’s Critical Raw Materials Act (CRMA). This initiative aims to secure sustainable supplies of critical raw materials essential for net-zero technologies and digital industries. Eclipse’s Ivigtût polymetallic project fits well within this framework, and the company’s membership in the European Raw Materials Alliance strengthens its position. The EU Commission has delayed the funding decision until March 2025, but Eclipse remains optimistic about the outcome.
Northern Territory Uranium Assets Under Review
On the corporate front, Eclipse is actively negotiating the sale of its Northern Territory uranium tenements, including the Ngalia Basin and Liverpool projects. After terminating a previous agreement with Oz Yellow Uranium Limited, the company is reviewing current offers from mid-tier uranium-focused entities. This divestment strategy aims to unlock value and focus resources on its Greenland rare earth projects.
Financial and Corporate Updates
During the quarter, Eclipse completed a pro-rata non-renounceable rights issue raising approximately $1.14 million before costs and appointed Alfred Gillman as a Non-Executive Director. Exploration expenditure was modest at $97,000, reflecting a focus on advancing existing assets rather than new drilling. The company ended the quarter with $410,000 in cash, supported by recent financing activities, positioning it to continue its development programs.
Bottom Line?
Eclipse Metals is steadily transforming its Greenland rare earth assets into strategic projects, with EU funding and mining licenses the next critical milestones.
Questions in the middle?
- Will further drilling confirm the large-scale exploration targets at Grønnedal and Ivigtût?
- How will the EU funding decision impact Eclipse’s development timeline and capital structure?
- What are the terms and potential proceeds from the Northern Territory uranium asset negotiations?