Resource Expansion at Risk? Deep Drilling Reveals Both Promise and Uncertainties at Tanbreez

Context and Significance of New Assay Results

European Lithium Ltd (ASX: EUR) has published for the first time detailed assay results from historical deep diamond drill holes DX-02 (2010) and D306-13 (2013) at the Tanbreez Rare Earth Project in southern Greenland. These results reveal high-grade rare earth element (REE) mineralisation averaging approximately 0.44% total rare earth oxides (TREO), with a substantial portion, around 26%, comprising heavy rare earth oxides (HREO), which are particularly valuable for advanced technologies.

The Tanbreez Project, operated by Tanbreez Mining Greenland A/S and majority-owned by Critical Metals Corp. (NASDAQ: CRML), is notable for its large-scale Kakortokite host rock estimated at approximately 4.7 billion tonnes. While the entire host rock's economic viability remains uncertain, these assay results provide strong evidence of significant mineralisation extending to depths of 195m and 328m in the respective drill holes.

Key Highlights and Mineralisation Details

Drill hole DX-02 intersected mineralisation averaging 0.42% TREO with 24% HREO, alongside notable concentrations of zirconium oxide (ZrO2) at 0.91%, tantalum pentoxide (Ta2O5) at 63 ppm, niobium pentoxide (Nb2O5) at 1293 ppm, hafnium oxide (HfO2) at 181 ppm, and gallium oxide (Ga2O3) at 98 ppm. Drill hole D306-13 showed even higher TREO grades averaging 0.45% with 27% HREO and elevated zirconium oxide at 1.7%, plus significant niobium pentoxide at 2479 ppm.

Additional recent drill holes (A1-24, DX-01, D7-14) corroborate these findings, showing consistent TREO grades around 0.43–0.47% with approximately 26–28% HREO, and gallium oxide concentrations near 100 ppm. The presence of gallium oxide is particularly noteworthy as it adds a valuable oxide credit to the mixed concentrate, potentially enhancing the project's economic attractiveness.

Environmental and Regulatory Advantages

Importantly, assays indicate low levels of uranium and thorium, well below 80 ppm combined, across the mineralised zones. This low radioactivity profile distinguishes the Tanbreez deposit from many other REE projects, simplifying environmental management and regulatory compliance. Such characteristics increase the project's appeal to Western governments and stakeholders focused on sustainable and politically viable critical metals supply chains.

Next Steps and Strategic Outlook

European Lithium is actively preparing for a 2025 resource drilling program aimed at extending and upgrading the current JORC 2012 Mineral Resource Estimate (MRE) of 45 million tonnes at 0.38% TREO. The drilling will focus on infill and extension between historical drill holes to better define the resource footprint, particularly targeting the Fjord and Hill Zone deposits. The company is also re-assaying historical samples to confirm and reconcile assay data, with further results expected soon.

Following the recent scoping study that demonstrated a robust economic case with a net present value (NPV) of US$2.4 to US$3.0 billion and an internal rate of return (IRR) of 162% before tax, European Lithium is engaging feasibility study partners and assembling an experienced team to advance the project toward development. The strategic location in Greenland and the project's favorable mineralogy position Tanbreez as a potentially critical supplier of rare earths and associated metals for clean energy and technology sectors.