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Investing.com - Mineral miner Critical Metals Corp (NASDAQ:CRML) has commenced a 2000-meter resource diamond drilling campaign at the Tanbreez project in Greenland, the world’s biggest rare earth deposit by resource count.
In a statement, Critical Metals said the development positions the mine for commercial production which is expected to begin next year.
The drilling program will target a "significant" increase the size of the current mineral resource estimate, or an assessment of the quantity and quality of a mineral deposit that has reasonable prospects for economic extraction, the company said.
"Launching our 2025 drilling campaign at Tanbreez is an important investment and step in our efforts to bring this game-changing rare earth asset into production as soon as possible to meet the growing demand in the United States and the West more broadly for rare earth material," CEO Tony Sage said.
Teams are on site conducting fieldwork and collecting data that will play a key role in finalizing the bankable feasibility study -- a detailed analysis of a mining project that aims to give financial institutions information to make informed decisions about potential investments, Critical Metals said.
Comprehensive reports are also required by regulators in Greenland, it noted, adding that the firm is on track to deliver these final reports by the fourth quarter of this year.
Critical Metals -- the result of a merger between Australia’s European Lithium and U.S.-based Sizzle Acquisition -- previously announced in 2024 a binding agreement to take a controlling interest in the Tanbreez Greenland Rare Earth Mine.
At the time, Critical Metals, which aims to produce strategic products essential to electrification and next generation technologies, said the Tanbreez project would unlock a "sustainable, reliable and long-term rare earth supply for North America and Europe."
So far this year, shares of Critical Metals have fallen by more than 54%. The stock sank sharply in February after Critical Metals announced that it would issue 4.5 million shares at a steep discount as part of a bid to raise $22.5 million through so-called private investment in public equity, or PIPE, financing.