NeoTerra (LON: TERA) shares jumped 10% in early trading after the company reported encouraging initial metallurgical results from its Monte Muambe Project in Mozambique.
Testing by Comex identified X-Ray Transmission (XRT) as a potential route to pre-concentrate gallium-bearing feldspar, which represents around 30% of the rock mass.
Separately, hydrometallurgical testing by SGS Lakefield using an acid leach route achieved 85% gallium extraction, while also showing good selectivity against silica.
NeoTerra said the results support further work to develop and optimise a potential gallium recovery flowsheet, although additional testing will be required before commercial viability can be assessed.
Next steps include further ore-sorting trials using XRT and SWIR technology, assessment of XRF sorting, and additional leach testing to refine extraction conditions and gallium recovery from solution.
The company currently has a gallium resource of 11.73 million tonnes at 54.7g/t Ga2O3 and ultimately intends to target a resource of 50 million tonnes or more, subject to successful metallurgical development and future drilling.
Chief executive Cedric Simonet said the initial results provide strong support for continuing the gallium workstream alongside NeoTerra’s US-funded rare earths programme and planned fluorspar mine development.
