Desert Metals is sitting on one of the largest Clay Hosted Rare Earth deposits in the world (excluding China) which is already ~52sq kms footprint and Open in all Directions.
The company has $3.5m to $4m in cash, which was their total spend for the full year 2022, which included record drilling, EM surveying, soil sampling and assaying etc. So plenty of cash for 2023 at a time where the world is desparate for Rare Earths.
They will use this cash over the next 12 months to drill another 12,000-15,000m at Innouendy, which will confirm a Maiden JORC High Grade very large tonnage Rare Earth Resource as well as continued drilling chasing the higher grade PGEs and Nickel. As well as grow the footprint to over 52 sq kms.
IXR is a good comparison to DM1 being a clay hosted REE deposit.
IXR has an REE JORC Resource of 532million tonnes at 640ppm and has a market cap today of $170million.
Even if we take a conservative 15metre thickness (Innouendy's thick clay are bw 8-48metres thick, and in some areas up to 80metres thick) over the 52sqkm footprint, Desert Metals' Innouendy REE Clay deposit, is over 1.26Billion Tonnes at a higher PPM REE Grade than IXR, given the grades they have already released from ~10,000m of drilling to date.
As the 4,000metres of assays and this next drilling program commences at Innouendy (and Belele Copper/Gold) and a Maiden High Grade Large Tonnage REE JORC is released:
~1.26Billion Tonnes of Rare Earths (where 22.9% of these are the extremely valuable Magnetic Rare Earths, for EVs and Wind Turbines, we will see a significant rerating event(s) for DM1.
Hence why the company included "potentially globally significant clay REE mineralisation" statement at the AGM.
Remember, Innouendy is a High Grade, High Recovery, Shallow from Surface and Thick Rare Earth Clay deposit in WA, that is currently a ~52 sq km footprint with more to come shortly.
It will be global institutional investors that lift DM1's market cap and share price to new all-time highs as these major milestones are ticked off now that this Significant REE Discovery has been confirmed by DM1, not keyboard warriors on HC.
DM1 Price at posting:
24.5¢ Sentiment: Buy Disclosure: Held
