Aldoro Resources Ltd (ASX:ARN) has executed a binding agreement to acquire an 85% interest in the Kameelburg Heavy Rare Earth Carbonatite Project in Namibia, a deal described by the company as "transformational".
This project has provided encouraging data with historic rock chip and soil sampling returning up to 2.12% TREO and up to 2.02% TREO respectively.
Kameelburg Project is well connected with a robust road and railway infrastructure and a 220kV hydropower transmission line that passes within seven kilometres of the project.
The heads of agreement comes at a time when Namibia has been ranked as the second most favourable jurisdiction by the Fraser Institute on the Policy Perception Index (PPI) for the African continent.
Increase rare earth exposure
Aldoro chairman Troy Flannery said: “ARN view this critical metals transaction as an excellent opportunity for the company, as it increases our rare earths exposure in what appears to be an extremely large outcropping carbonatite deposit.
“We are comfortable with the project’s location in Namibia, which is ranked by the Fraser Institute as the second most favourable jurisdiction (behind Morocco) on the Policy Perception Index across the African continent.”
About the project
The Kameelburg Project is a carbonatite-hosted system that forms a prominent hill rising to 275 metres, with an approximate diameter of 1.4 kilometres.
It is about 300 kilometres north of the capital Windhoek and 60 kilometres southwest of Otiwarongo along well-maintained bitumen roads.
The country rock consists of marbles, quartzites and mica schists of the Damara Supergroup where rare earth metals are known to occur in all three phases with higher concentrations in the more magnesium and iron-rich beforesites.
Next steps
The forward work program, which Aldoro is funded to execute for the project, involves the following steps:
- conduct a site visit and organise a due diligence sampling program;
- set up an operating framework for Namibia, including organising a local controlling entity, visiting local stakeholders; and
- conduct a desktop study, and acquire historical datasets over the whole project area.