Critical Metals Soars as Drilling Expands Greenland Rare Earth Resource

Tanbreez Drilling Targets Major Expansion of Rare Earth Resource:

Critical Metals (NASDAQ: CRML) has begun a 2,000-metre drilling campaign at its Tanbreez rare earth project in southern Greenland, aiming to significantly increase its mineral resource estimate (MRE). The company’s shares surged over 22% on the news, reaching a four-month high of $3.80 before settling around $3.60. The updated resource will support a bankable feasibility study (BFS), crucial for regulatory and financing milestones.

Tanbreez sits atop a 4.7-billion-tonne mineralized kakortokite host, making it one of the world’s largest undeveloped rare earth element (REE) deposits. The project currently has an indicated and inferred resource of nearly 45 million tonnes — only about 1% of the total host rock. Notably, 27% of this is categorized as heavy rare earths (HREEs), which are vital for clean energy, defense systems, and other advanced technologies.

The 2025 drill program will focus on the eudialyte-rich Fjord deposit, which comprises approximately 22.6 million tonnes of the existing resource. Critical Metals plans to extend the deposit 700 meters east and 650 meters along strike. The goal is to define a 500-million-tonne exploration target within the larger host formation, which measures 5 km x 2.5 km and reaches several hundred meters in thickness.

Focus Keyphrase: Critical Metals Soars as Drilling Begins:

The announcement marks a major milestone for Critical Metals as it moves toward production by 2026. The company plans initial output of 85,000 tonnes of rare earth oxides annually. It aims to scale up to 425,000 tonnes through modular expansion. A preliminary economic assessment released earlier this year showed a net present value of up to $3.6 billion. The internal rate of return reached 180%, highlighting the project’s strategic importance.

CEO Tony Sage emphasized that the 2025 drilling will “pave the way for a final decision to mine.” Full exploration teams are now onsite. New data will play a critical role in securing regulatory approvals and meeting financing conditions. The U.S. Export-Import Bank has issued a letter of interest for a $120 million loan. This shows strong international confidence in the project.

Meanwhile, fresh data from the 2024 drill campaign is under review. It will further confirm the scale and quality of the resource. The company expects these updates to support the bankable feasibility study. They will also aid environmental and operational planning to bring Tanbreez into production.

SuperMetalPrice Commentary:

Critical Metals’ aggressive push at Tanbreez reinforces Greenland’s rising role in global rare earth supply chains. As geopolitical competition intensifies around critical minerals, projects like Tanbreez offer long-term strategic value to the West. Critical Metals focuses on heavy rare earths with a scalable production model. Early-stage financial backing strengthens its position in the REE market. This drill campaign’s success will likely determine the company’s development pace. It will also influence Greenland’s role in future rare earth pricing.