Grønnedal Resource Soars to 89.2 Million Tonnes with 567,600 Tonnes TREO

• Grønnedal rare earth resource upgraded to 89.2 million tonnes at 6,363 ppm TREO
• High-grade rare earth mineralisation confirmed at depth in historical drillholes
• Positive metallurgical tests show up to 54% recovery via low-cost flotation
• Raised $2 million to accelerate Greenland exploration efforts
• Progress on EU Strategic Project status and uranium portfolio expansion

A Quantum Leap in Rare Earth Resources

Eclipse Metals Ltd (ASX, EPM) has delivered a landmark update for its Grønnedal Rare Earths Project in southwest Greenland, announcing a staggering 70-fold increase in its inferred mineral resource estimate. The new figure stands at 89.2 million tonnes grading 6,363 parts per million total rare earth oxides (TREO), containing over 567,600 tonnes of TREO. This dramatic upgrade positions Grønnedal as a potentially significant global supplier of both light and heavy rare earth elements, critical for emerging technologies.

Validating Depth and Quality

Further validation came from assays of historical drillholes, revealing exceptionally high-grade mineralisation at depths exceeding 200 metres. Notably, one sample returned 20,092 ppm TREO over a narrow interval, confirming vertical continuity and expanding the resource’s upside potential. These findings underscore the unexplored depth and breadth of the Grønnedal carbonatite body, which has only been partially drilled to date.

Encouraging Metallurgical Insights

Metallurgical testing conducted by SGS Canada has delivered promising results, with liberation studies indicating up to 54% recovery of key rare earth minerals such as Synchysite, Bastnasite, and Monazite through low-cost flotation methods. Importantly, magnet rare earth elements; neodymium, praseodymium, dysprosium, and terbium; comprise 33 to 39% of the TREO, enhancing the project’s economic attractiveness given their demand in electric vehicles and renewable energy technologies.

Strategic and Geopolitical Advantages

Grønnedal’s location offers significant strategic benefits, including deep-water port access, existing grid infrastructure, and a lack of uranium penalty, which simplifies permitting and aligns with environmental, social, and governance (ESG) criteria. These factors position Eclipse to serve critical supply chain needs for the EU and North America, especially as the Ivigtût Project remains under active consideration for Strategic Project status under the EU Critical Raw Materials Act.

Advances in Uranium and Corporate Developments

Alongside Greenland progress, Eclipse advanced its Australian uranium portfolio through a binding option and earn-in agreement with Boss Energy Limited for the Liverpool Uranium Project in the Northern Territory. The company also successfully raised $2 million through an oversubscribed placement to accelerate exploration activities. However, Eclipse disclosed a legal dispute with Pioneer Resources Partners LLC, which it strongly refutes and intends to defend vigorously.

Looking Ahead

Exploration expenditure remained modest at $64,000 for the quarter, with no mining production or development costs reported. Eclipse plans to continue metallurgical testing and detailed geological mapping, aiming to support pre-feasibility studies by the end of 2025. The company’s strategic positioning and resource growth set the stage for potentially transformative developments in the rare earths sector.

Bottom Line?

Eclipse Metals’ Greenland breakthrough and strategic moves signal a rare earths story worth watching closely in 2025 and beyond.

Questions in the middle?

• Will metallurgical test results confirm scalable, cost-effective processing for Grønnedal?
• How will the EU’s Strategic Project status decision impact Eclipse’s funding and permitting timeline?
• What are the potential implications and outcomes of the legal dispute with Pioneer Resources Partners?