European Lithium Unveils Deep High-Grade Rare Earths at Greenland’s Tanbreez Project

Context and Significance

European Lithium Ltd (ASX, EUR) has published detailed assay results from eleven deep diamond drill holes at the Tanbreez Project in southern Greenland, a globally significant rare earth elements (REE) deposit. These holes, drilled in 2007 and 2013 but reported now following rigorous verification, reveal consistent high-grade mineralisation extending well below the current Mineral Resource Estimate (MRE) at the Fjord deposit.

The weighted average grade across these deep holes is 0.43% total rare earth oxides (TREO), with a notable 28% of that being heavy rare earth oxides (HREO). This heavy rare earth content is particularly valuable for high-tech and clean energy applications, positioning Tanbreez as a premium source in the critical minerals sector.

Drilling Highlights and Resource Implications

The drill holes were strategically designed to fan out from key collar locations, penetrating the kakortokite host rock unit that contains the eudialyte mineralisation. Notably, some holes extended below sea level and beyond the limits of the existing MRE, confirming the continuity of rare earth mineralisation at depth. Intervals ranged from approximately 47 to 248 metres with grades between 0.33% and 0.51% TREO, underscoring both the thickness and quality of the deposit.

These results provide a compelling opportunity for European Lithium to expand and upgrade the current resource, which was recently estimated at around 45 million tonnes of eudialyte at 0.38% TREO. The company plans a 2025 drilling campaign aimed at infill and extension drilling to convert inferred resources to indicated status and to delineate additional mineralisation zones, including the Hill deposit area.

Strategic and Environmental Advantages

Tanbreez stands out for its low uranium and thorium content, which mitigates regulatory and environmental challenges common in rare earth mining. This feature enhances the project’s political and environmental viability, especially important given Greenland’s sensitive ecosystem and geopolitical context.

European Lithium holds a significant stake in Critical Metals Corp, the operator of Tanbreez, which is advancing the project through exploration towards feasibility and development. The recent scoping study highlighted robust economics with a net present value (NPV) estimated between US$2.4 billion and US$3.0 billion and an internal rate of return (IRR) of 162% before tax, reflecting the deposit’s strong potential.

Next Steps and Market Outlook

The company is actively preparing for the upcoming field season, with exploration teams mobilising to Greenland to commence drilling. Concurrently, re-assaying of historical samples is underway to ensure data integrity and support resource modelling. The market will be watching closely for the forthcoming assay results from the 2024 drilling program and the expansion drilling planned for 2025.

Given the strategic importance of rare earths in global supply chains, especially for clean energy and defence technologies, Tanbreez’s advancement is timely. European Lithium’s ability to demonstrate consistent high-grade mineralisation at depth strengthens its position as a key player in the critical minerals space.