en.Wedoany.com Reported - Godolphin Resources plans to spin off its Narraburra rare earth project, located in the Lachlan Fold Belt of New South Wales, into a new entity, Matrix Critical Minerals, which intends to conduct an initial public offering on the Australian Securities Exchange in the second half of 2026.
Godolphin Resources (ASX:GRL) has been approved to join the U.S. Defense Industrial Base Consortium. Under the demerger plan, Matrix Critical Minerals will be held by a new ASX-listed entity. Several Godolphin board members will hold positions in the new company, with non-executive director Christopher Gibbs serving as executive chairman. Gibbs previously served as CEO of American Rare Earths (ASX:ARR). GRL Managing Director Jeneta Owens will take on a non-executive director role, company secretary Craig McPherson will retain the same position, and Dr. Quinton Hills will join the board as technical director.
Extensive work has been completed on the Narraburra project, defining a resource of 94.9Mt at a total rare earth oxide grade of 739ppm, with approximately half (47.6Mt at a TREO grade of 780ppm) classified as indicated resources. Laboratory-scale metallurgical testing has successfully extracted up to 95% of magnetic rare earth elements into a high-value mixed rare earth concentrate, which has a TREO grade of 57.8% and contains high concentrations of the magnetic rare earth elements terbium and dysprosium.
Gibbs and Owens stated that the purpose of the demerger is to allow Matrix and Godolphin to each focus on advancing their respective projects. Owens noted that Godolphin's current market valuation does not fully reflect the value of Narraburra, nor does it reflect the actual value of its Lewis Ponds gold, silver, and base metals project. Post-demerger, Godolphin can focus on other projects in the Lachlan Fold Belt, including Lewis Ponds. The company holds a multi-commodity strategy, which Owens described as working well during market volatility, allowing it to adjust its focus based on market reactions.
The advantage of the Narraburra project lies in its ability to easily produce a high-quality mixed rare earth carbonate product with high levels of heavy magnetic rare earths and high yttrium content. In phase three metallurgical testing, leaching extraction rates for magnetic rare earth oxides reached up to 90%, yielding an MREC product with a TREO grade of 57.8%. High-value critical heavy rare earth oxides account for 26.9% of the TREO content, with terbium and dysprosium comprising 5.9% of the MREC, commanding prices far higher than other rare earth elements. Gibbs emphasized that the key to the project's value lies in the type of MREC product that can be produced, not the initial grade. The project benefits from a simple impurity removal process, with ANSTO Minerals not requiring unconventional measures to develop the process flowsheet.
Another standout advantage of the project is the significant amount of yttrium, with reserves large enough to be considered a standalone yttrium mine. Previously considered of limited value, yttrium's application in aerospace, electronics, and defense components has highlighted its worth following strict export restrictions imposed by China on nations critical to defense manufacturing, leading to substantial price increases. Gibbs noted that in the 12 months to February 2026, the price of yttrium surged from $9/kg to $850/kg in Europe, a 140-fold increase. Prices have continued to rise since then, with Benchmark reporting that North American CIF yttrium oxide rose to $1,150/kg in March and to $1,575/kg in early May. Narraburra is strategically located 350 kilometers west of Sydney, within 5 kilometers of high-voltage power, the national rail network, highway infrastructure, and sealed roads.
Godolphin plans to remain a major shareholder in Matrix while distributing most of its Matrix shares to its own shareholders in-specie. For Matrix, Gibbs stated that post-listing, the focus will be on resource drilling to further confirm resource volumes and accelerate the pre-feasibility study for Narraburra. He noted that approximately 70% indicated resources are required to release a scoping study, and drilling is currently needed to meet this requirement while continuing metallurgical test work. The company is also seeking to accelerate collaboration with the ANSTO demonstration facility to showcase production capabilities at a commercially saleable demonstration plant. This includes leveraging pathways opened by its membership in the U.S. Defense Industrial Base Consortium to access non-dilutive funding. Gibbs' vision is to accelerate the project towards commercial operations and release a scoping study demonstrating the flow of funds and the value of yttrium and the high-quality product basket.
This article is compiled by Wedoany. All AI citations must indicate the source as "Wedoany". If there is any infringement or other issues, please notify us promptly, and we will modify or delete it accordingly. Email: news@wedoany.com
