In a recent update, London Stock Exchange listed company, Altona Rare Earths, has announced the discovery of high-grade gallium mineralisation at its Monte Muambe rare earths and fluorspar project in Mozambique. The standout finding includes gallium concentrations reaching up to 232 g/t, marking a significant development for the project.
According to the company, high-grade gallium intercepts were recorded at both the Fluorite zone and Target 6. The most promising result came from drill hole MM039, which delivered an intercept from surface to 100 metres averaging 77 g/t gallium, including a 14.89-metre section grading 141 g/t. These results are particularly noteworthy, as gallium is a rare and strategic metal currently experiencing strong price growth due to escalating geopolitical tensions between China and the United States.
Gallium is typically recovered as a by-product of zinc and bauxite mining and is used in a range of high-tech applications including radar systems, LEDs and semiconductors. It is recognised as a strategic raw material in multiple jurisdictions, including the European Union. Altona highlighted that China holds a near-monopoly on gallium production and its recent export ban of both gallium and germanium to the US has caused prices to spike, peaking at $585/kg in December 2024, which is the highest since 2011. The current price of gallium sits at approximately $250/kg.
This surge in value, coupled with the discovery of high-grade gallium associated with rare earth elements in carbonatite deposits, prompted Altona to re-examine its drilling data for gallium potential. Gallium was already being analysed as a trace element during the preparation of Monte Muambe’s rare earth mineral resource estimate by Intertek Laboratories.
Drill holes MM039 and MM040 returned several high-grade gallium intercepts, with MM039 located at the northern end of the Fluorite zone. This hole not only yielded strong gallium grades but also intersected high-grade rare earths and fluorspar. Altona noted that gallium mineralisation appeared continuous throughout the length of the hole. Meanwhile, MM040, situated on Target 6 has returned similarly promising gallium values, despite the area having received limited drilling in comparison to more explored zones like Target 1 and Target 4.
The company believes that this gallium discovery could significantly enhance the economic viability of Monte Muambe’s rare earth orebodies, particularly at Target 6, by introducing an additional high-value by-product. However, the lateral extent of gallium mineralisation remains unknown and will be assessed during upcoming field campaigns.
Altona also confirmed plans to assess the recoverability of gallium, beginning with efforts to identify its exact mineralogy. The company will further review its soil sampling database, which includes first-pass gallium assays using X-ray fluorescence (XRF), to search for surface-level anomalies that may indicate broader mineralisation.
In parallel with the gallium assessment, Altona is progressing with its scoping study. Fluorspar samples have been delivered to Peacocke & Simpson’s laboratory in Zimbabwe, where gravity separation and flotation tests are currently under way. The company attributed earlier delays to logistical issues following post-election instability in Mozambique, a situation that has since stabilised. Test results are expected during April.
“Carbonatite systems typically host a wide range of minerals, and Monte Muambe is no exception. The discovery of gallium mineralisation in less explored sections of the intrusion is an exciting development and supports the project’s broader potential for additional discoveries. While we continue to explore short-term production opportunities for fluorspar, we are now carefully evaluating gallium as a potential by-product and assessing its extent at surface level,” said Cedric Simonet, Chief Executive Officer of Altona.
