Tsodilo Resources (OTCQB: TSDRF) has announced compelling confirmation of skarn-hosted critical minerals and rare earth element (REE) mineralization at its Gcwihaba Metals Project in northwest Botswana. This development positions the company to potentially tap into a significant resource, crucial for the burgeoning demand in advanced technologies like electric vehicles and renewable energy.
Initial diamond drilling at the C26 and C27 targets has successfully intersected REE mineralization at depths ranging from 20 to 50 meters below the surface. Notably, intercepts include a peak grade of 1.49% Total Rare Earth Oxides (TREO) over a 2-meter interval at C27, and 0.46% TREO over 1 meter at C26. These findings underscore the potential for high-value deposits within the project area.
Building on these results, Tsodilo has defined a conceptual exploration target of 81 to 97 million tonnes, with grades estimated between 0.05% and 1.49% TREO. This substantial target, spanning four kilometers, highlights the considerable scale of the mineralization. To further delineate and quantify this potential, the company has outlined an ambitious 15,000-meter diamond drilling program scheduled for 2026. The primary objective of this extensive drilling campaign is to gather sufficient data to support the preparation of an initial National Instrument 43-101 compliant resource statement.
A significant aspect of the reported mineralization is the presence of key rare earth elements, particularly neodymium and praseodymium (NdPr). These elements constitute approximately 15% of the TREO at C26 and C27, a proportion that is highly comparable to established producers like MP Materials’ Mountain Pass mine. NdPr is indispensable for the production of high-performance permanent magnets, which are critical components in electric vehicle drivetrains, wind turbine generators, and advanced defense systems.
Furthermore, the Gcwihaba project’s polymetallic nature adds another layer of strategic value. The skarn mineralization includes fifteen of the fifteen REE elements listed on the U.S. Department of the Interior’s 2025 list of Critical Minerals. Beyond REEs, the project also hosts significant concentrations of other critical minerals such as copper, cobalt, nickel, vanadium, and silver, with reported intercepts including copper up to 0.41%, cobalt up to 320 ppm, and silver up to 5.1 g/t.
The company’s systematic exploration approach, integrating geophysical surveys with diamond drilling, has proven effective in identifying and confirming mineralization beneath the Kalahari sediment cover. The 2026 drilling program is strategically designed to focus on defining these high-grade REE zones, enhancing geological confidence, and collecting material for metallurgical testwork to assess extraction feasibility.
The global demand for rare earth elements is projected to grow significantly, driven by the energy transition and technological advancements. With global supply chains heavily concentrated, the development of new, significant sources like Gcwihaba could play a vital role in meeting future demand and diversifying supply. The identification of 20 out of 60 critical minerals at Gcwihaba further strengthens its strategic importance in the context of secure mineral supply chains.
Tsodilo’s Chairman and CEO, James M. Bruchs, expressed optimism, stating, “The 1.49% TREO intercept at C27 represents the highest grade recorded so far for Gcwihaba. These results validate our systematic exploration approach and demonstrate evidence of a polymetallic REE skarn system with both vertical extent and grade.” He added that the 2026 drilling program will aim to define high-grade REE zones while further evaluating the polymetallic potential to support the preparation of an initial mineral resource estimate.
The Gcwihaba Metals Project represents a significant step forward for Tsodilo Resources, potentially positioning it as a key player in the supply of critical minerals essential for the global transition to a more sustainable and technologically advanced future.
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