European Lithium-backed Critical Metals awards US$2M drill contract at Greenland’s Tanbreez project
Published: 21:42 23 Jun 2025 EDT
Critical Metals Corp (Nasdaq: CRML) has awarded a US$2 million (A$3 million) diamond drilling contract to Greenland-based 60 Degree North for exploration at the Tanbreez Rare Earth Project. European Lithium Ltd (ASX:EUR, OTCQB:EULIF) Ltd, which holds approximately 63% of Critical Metals, welcomed the development as part of the broader strategy to advance the Fjord eudialyte resource.
The drilling program builds on recent progress, including a US$120 million Letter of Intent (LOI) for project financing from the Export-Import Bank of the United States (EXIM). The LOI is expected to support the development of Tanbreez — one of the world’s largest rare earth deposits.
Drilling is expected to start in July and will target resource upgrades and extensions at the Fjord Deposit.
Drilling to target resource upgrade and expansion
The 2,000-metre diamond drilling campaign is designed to upgrade the existing Inferred Resource to Indicated status and expand the Mineral Resource Estimate (MRE) footprint at Tanbreez.
The current MRE for the Fjord Eudialyte deposit comprises 8.76 million tonnes (Mt) of Indicated and 13.8 Mt of Inferred resources, contributing to a combined total of 22.56 Mt. This forms part of the broader deposit total, which stands at 25.42 Mt Indicated and 19.45 Mt Inferred of eudialyte.
The planned program will test extensions approximately 700 metres northeast and 650 metres southwest of the known kakortokite-hosted mineralisation. Drill depths will range from 80 to 250 metres, adjusted for local topography.
Resource diamond drilling program hole collars in relation to historical diamond and RC drilling and December 2024 confirmation drilling over the Fjord MRE Area.
“The 2,000-metre resource diamond drilling contract is more great news after the announcement of securing US$120,000,000 LOI for a 15-Year Term Loan from the US Federal Government Bank (EXIM Bank) for the Development of Tanbreez,” Sage said.
“The exploration team and drilling contractor are preparing to commence drilling in early July over the existing Fjord MRE with detailed infill and extension drilling targeting upgrading the resource from Inferred Resource to Indicated Resource category, and extending the size of the Tanbreez Fjord Deposit.”
The EXIM Bank facility and resource drilling are key elements in de-risking the project and fast-tracking its development toward production.
About the Tanbreez and Wolfsberg projects
Tanbreez is regarded as one of the largest rare earth element deposits globally. Critical Metals also owns the Wolfsberg Lithium Project in Austria, the first fully permitted lithium mine in Europe. This project has established infrastructure access and downstream partnerships, positioning it to be a major European lithium supplier.
The company also holds a 20% interest in other Austrian mineral projects formerly owned by European Lithium. Through this diversified portfolio, Critical Metals aims to support clean energy transition and defence supply chains across the Western world.
European Lithium currently holds 65,916,641 shares in Critical Metals, representing a 63% stake. Based on the 23 June 2025 closing price of US$2.42, the Company’s interest is valued at approximately US$159.5 million (A$247.5 million). This shareholding aligns European Lithium with Critical Metals’ ambition to become a key supplier of critical minerals to the European lithium-ion battery market.
