Critica Limited, listed on the ASX, has successfully secured a refund of $1.05 million from the Australian Tax Office through the Research and Development Tax Incentive Program.
The financial boost will accelerate the company’s efforts on its promising rare earths project located in Western Australia’s Mid West area.
This refund adds to an already robust cash reserve, totaling $6 million at the end of December. The funds will specifically support metallurgical testing and satellite drilling initiatives at the company’s fully owned Brothers clay-hosted rare earth project, especially at its flagship Jupiter site.
The timing of this funding seems perfect as Critica is advancing studies to validate some impressive results reported earlier this year and is working towards producing a mixed rare earth carbonate product.
Initial findings indicated that material from Jupiter could be upgraded by an astonishing 830%. Testing on a sample from Jupiter’s mineralization yielded exceptional results, enhancing an initial concentration of 1430 parts per million (ppm) total rare earth oxides (TREO) to a concentrated grade of 13,310 ppm TREO.
The company explained that the straightforward flotation method significantly boosted the grade to more than nine times the original head grade, emphasizing the simplicity of processing the clay-hosted deposit.
Remarkably, even with 94.5% of the bulk material removed, the remaining concentrate still achieved a rare earths recovery rate exceeding 50% prior to any additional optimization.
The combination of a significant increase in grade and reduced waste could greatly enhance the project’s future economics and reframe the company’s value proposition.
Our metallurgical workstreams aim to expand upon the remarkable initial results we disclosed earlier this year, which indicated the potential for nearly a tenfold upgrade of representative Jupiter mineralization while decreasing overall material mass by around 95%.
The Brothers project, particularly Critica’s Jupiter discovery, has rapidly emerged as a key player in Australia’s expanding critical minerals sector.
Critica recently announced an impressive maiden global resource of 1.8 billion tonnes with a grade of 1700 ppm TREO at Jupiter.
This substantial resource, evaluated by renowned SRK Consulting, includes about 500 million tonnes at a high-grade of 2200 ppm TREO, utilizing an impressive cut-off grade of 1800 ppm.
Management believes the near-surface and remarkably consistent nature of this globally significant deposit opens up numerous possibilities for future processing and development.
Critica noted that the R&D refund, along with broader governmental support for early-stage project development, strongly endorses the company’s initiative to create and safeguard intellectual property in rare earths processing.
Considering recent global events that have significantly altered the supply chain for critical metals, this work aligns with a wider government effort to secure alternative supply chains for crucial materials used in electric vehicles, renewable energy, and defense technologies.
With strengthened financial resources, promising preliminary results, and a clear pathway for technical advancements, Critica is well-positioned to excel in meeting the growing global demand for critical minerals.
Is your ASX-listed company engaged in something noteworthy? Get in touch: matt.birney@wanews.com.au
