Nechalacho’s New Targets Show TREO Grades Up to 168,000ppm, Drilling Underway

Exceptional Surface Sampling Results

Vital Metals Limited (ASX: VML) has announced striking assay results from its Nechalacho Rare Earths and Niobium Project, located in Canada’s Northwest Territories. The company’s recent grab sampling campaign has returned ultra-high-grade concentrations of total rare earth oxides (TREO) and niobium, with some samples exhibiting heavy rare earth oxide (HREO) content exceeding 25%, and in one case reaching an extraordinary 86.1% of TREO. These results come from both newly identified regional targets and established central zones, highlighting the potential for a much larger mineralised system than previously defined.

Expanding Beyond the Tardiff Deposit

The Nechalacho Project’s current Mineral Resource Estimate (MRE) centres on the Tardiff deposit, which hosts 192.7 million tonnes at 1.3% TREO and 0.3% Nb2O5. The July 2025 Scoping Study based solely on Tardiff indicated a post-tax net present value (NPV8%) of US$445 million. However, the new sampling results from three regional targets; 1029A/1034B, 1201A/BF1, and 359A/537A; as well as the central R, S, and Cressy Ridge zones, suggest a district-scale mineralised footprint that could materially enhance the project’s value profile.

Strategic Drilling and Exploration Plans

In response to these encouraging assays, Vital Metals has commenced a 1000-metre winter drilling program focused on the more advanced R, S, and Cressy Ridge zones. Surface exploration of the newly identified regional targets is planned for the summer field season of 2026, with the goal of advancing these areas to drill-ready status for the following winter. This staged approach aims to systematically grow and upgrade the resource base ahead of a targeted Pre-Feasibility Study in February 2027.

Market and Technical Implications

The presence of high-grade heavy rare earths is particularly significant given their critical role in green technologies and the global push for responsibly sourced materials. Dr Pete Siegfried, a corporate advisor and rare earth expert, noted that these assay values rank among the highest reported worldwide. The enrichment of HREO could improve project economics by enhancing the value of the rare earth mix. However, the grab samples are selective and further drilling and metallurgical studies will be essential to confirm the extent and economic viability of these mineralised zones.

Environmental and Regulatory Context

Located approximately 100 kilometres southeast of Yellowknife, the Nechalacho Project operates under a complex regulatory environment requiring provincial and environmental approvals, alongside community consultations. Vital Metals’ ownership structure and royalty agreements with Avalon Advanced Materials and other parties are well established, providing a clear framework for advancing the project. The company’s forward-looking statements caution that while the results are promising, risks remain, and further technical work is needed to validate the resource expansion potential.