Altona Rare Earths plc (LSE:REE) has released initial assay results from its 2025 drilling programme at the Monte Muambe project in Mozambique, with roughly 10% of samples analysed to date.
Data received from diamond drill holes across the Fluorite and Python zones confirm near-surface mineralisation consistent with potential open-pit extraction. Early intercepts include peak grades of 82.76% CaF₂ and 409 g/t Ga₂O₃, while the weighted average fluorspar grade stands at 31% CaF₂ — broadly aligned with commercial mining benchmarks and company expectations.
Further assay results are expected in the coming weeks and will feed into a maiden mineral resource estimate for fluorspar and gallium. Management said the strong early data, alongside encouraging engagement with investors at Mining Indaba, reinforces the project’s development potential and strategic importance.
Monte Muambe already hosts a JORC-compliant rare earths resource and benefits from a 25-year mining licence. The asset forms the core of Altona’s strategy to fast-track annual production of 50,000 tonnes of acid-grade fluorspar over a projected mine life of at least 12 years, while also evaluating gallium recovery from processing tailings. The company believes the project positions it to supply critical raw materials into sectors such as batteries, nuclear energy and advanced technologies, strengthening its exposure to Africa’s evolving critical minerals value chain.
Despite the operational progress, the investment case remains constrained by weak financial fundamentals, including the absence of revenue, ongoing losses, persistent cash burn and rising leverage alongside declining equity. Technical indicators provide some counterbalance, with the shares exhibiting a strong upward trend and positive momentum signals. However, valuation metrics remain limited in usefulness due to negative earnings and the lack of dividend support.
More about Altona Rare Earths
Altona Rare Earths plc is a London Main Market-listed exploration and development company focused on critical raw materials projects across Africa. Its flagship Monte Muambe project in Mozambique hosts rare earths, fluorspar and gallium mineralisation under a 25-year mining licence, with near-term fluorspar production targeted alongside longer-term rare earths development.
The group is also advancing the Sesana copper-silver project in Botswana as part of a diversified portfolio aimed at supplying materials to clean energy, high-technology, defence and industrial markets.
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