Meeka Metals Limited announced that infill drilling for rare earths at Circle Valley is underway. The 2023 infill program will focus on the north- western zone where high TREO grades, up to 6,894ppm, are coincident with shallow cover. The mineralisation also persistently demonstrates a high proportion of the grade, up to 30% of the TREO grade, as valuable NdPr magnet rare earths.

The Company will also be looking to build on the high-grade gold results at Anomaly A. Assay results will be ongoing during the quarter. Delivery of an initial rare earth Mineral Resource is targeted for the June 2023 quarter. Rare earths are used in glass and ceramics, phosphors, medical imaging, communication technology, the automotive industry, electric vehicles and in renewable energy generation.

The unique chemical and physical properties of rare earths have positioned them as a critical material across a number of rapidly evolving markets and industrial applications. Of particular importance are magnet rare earth elements, neodymium and praseodymium, used in the manufacture of powerful permanent magnets for electric motors and turbines. The public and private sector push toward a low carbon economy is driving increased penetration of electric vehicles (EV) and use of renewable technologies for energy generation.

These megatrends drive growing demand for permanent magnets and are forecast to be the primary driver of growth in rare earth demand over next 10 years. Global EV sales are forecast to grow at 20% CAGR to 2026 (20 million units/year). By 2040 there are forecast to be more EV's on the road than hydrocarbon powered passenger vehicles.

Each EV uses 2-5kg of rare earth magnets. Installed wind turbine generating capacity is forecast to grow at 25% CAGR to 2030. Each direct-drive turbine uses 650kg of rare earth magnets per megawatt of generation capacity.

Global demand for magnet rare earth elements neodymium, praseodymium, dysprosium and terbium is expected to grow faster than demand for all other rare earth elements, challenging the ability of the supply-side to keep up. Market analysts forecast a supply deficit in magnet rare earth oxide (MREO) of between 15% and 37%, within the next 5 years due to tight supply from current producers and a lack of new production coming online. Key points: MREO supply deficit of 37% forecast by 2031 if no new supply comes online.

MREO supply deficit of 15% forecast by 2031 if all new sources of supply are developed and produce as forecast. To understand potential impact of supply shortfalls on MREO pricing, the preceding 3 years (2019 through 2021) provides a good guide. While markets were in a state of balance, MREO prices appreciated between 200% and 500%.

Clay hosted rare earth deposits often enjoy significant project and cost advantages compared to hard rock deposits, with lower cost bulk mining and a simple process flow sheet. Clay deposits do not require the higher cost comminution and beneficiation processes that hard rock deposits require, resulting in lower capital intensity and lower operating cost to produce a refined product. The generally higher proportion of magnet rare earth elements (neodymium-praseodymium) in clay deposits also results in a high value product.

Additionally, clay deposits may not produce the deleterious tailings waste.