Wet Mountain REE Project Boasts Historic Assays Up to 7.99% TREE

Acquisition Completion and Strategic Fit

Magnum Mining and Exploration Limited (ASX, MGU) has officially completed its acquisition of Wyoming Critical Minerals, Inc., securing full ownership of the Wet Mountain Rare Earth Element (REE) Project in central Colorado. This move aligns closely with Magnum’s strategic focus on critical minerals within the United States, a jurisdiction increasingly prioritised for its supply chain security and geopolitical stability.

The transaction involved a combination of cash payments, the issuance of 20 million fully paid Magnum shares, and a 2% net smelter royalty on minerals produced from the project. This structure reflects a balanced approach to capital deployment while maintaining upside potential for shareholders.

Project Highlights and Historical Context

The Wet Mountain REE Project is notable for its exceptionally high-grade surface mineralisation, with historic assays reaching up to 7.99% Total Rare Earth Elements (TREE) from outcropping carbonatite dykes. These figures, sourced from United States Geological Survey (USGS) data dating back several decades, suggest the presence of a potentially commercially viable deposit. However, it is important to note that no modern drilling or systematic sampling has been conducted to date, leaving the project’s true scale and grade unconfirmed.

Historically, the area has been explored primarily for thorium and uranium, with the Wet Mountain region known for its complex geology and multiple mineralisation corridors. The presence of heavy rare earth elements such as praseodymium, neodymium, and samarium further enhances the project’s appeal, given their critical role in high-tech and clean energy applications.

Exploration Plans and Potential

Magnum plans to initiate a systematic exploration campaign as soon as weather conditions permit. The program will include surface geochemical sampling to verify historic results, trenching to assess near-surface continuity, detailed geological mapping, and geophysical surveys to refine drill targets. An initial drilling program is anticipated to test high-grade zones at depth, aiming to unlock the project’s full potential.

Chairman Michael Davy emphasised the project’s strategic importance, noting that Wet Mountain complements Magnum’s existing REE drilling programs at Palmares and Azimuth, as well as its gold-copper-silver assets in the Walker Trend. The company also intends to engage with U.S. government critical minerals initiatives to support permitting and explore co-funding opportunities.

Caution and Forward Outlook

While the historic assay results are promising, Magnum cautions that these figures are conceptual and require validation through modern sampling and industry-standard assay procedures. Investors should be aware that the project remains at an early stage, with significant exploration risk until further data is obtained.

Nonetheless, the acquisition represents a compelling entry point into a high-grade REE project within a stable jurisdiction, positioning Magnum to potentially capitalise on growing demand for critical minerals essential to emerging technologies and clean energy solutions.