Timing, location, expertise on Aldoro’s side as junior looks to prove Kameelburg is global top 3 rare earths deposit

Aldoro Resources’ Kameelburg project is looking to be a standout critical minerals project with drilling returning strong rare earths and niobium results.

Aldoro Resources’ Kameelburg project looks to be perfectly placed to take a leading role in rare earths and other critical minerals. Pic: Getty Images

Special Report: Rare earths are among the most sought-after commodities, essential to renewable energy, EVs and the defence industry. And Aldoro Resources has quickly emerged as one of the most promising new entrants in the sector.

• Aldoro Resources’ Kameelburg rare earths and niobium project nearing resource estimate it says could place it among top 3 rare earths deposits globally
• Board has skin in the game, with top brass holding big stakes that align their interests with shareholders
• Rare earth M&A deals show the major upside for $60 million capped Aldoro

While there have been some monster resources discovered in recent times, the fact remains not all rare earth companies and their projects are built the same.

Like many of its peers, Aldoro Resources (ASX:ARN) is focused on the exploration of high-value critical minerals such as rare earths, niobium, molybdenum, rubidium, lithium and nickel, all of which are critical for decarbonisation and technological advancement. 

However, it’s differentiated by its highly credentialled leadership team and the potential scale of its highly prospective Kameelburg rare earths and niobium project in Namibia.

The proposed sale of fellow African rare earths explorer Peak Rare Earths (ASX:PEK) and its Ngualla project to a subsidiary of Shenghe Resources for $150.5m has shone a spotlight on the continent’s potential to deliver the next generation of major rare earths mines.

Early indications are that Aldoro’s Kameelburg, sitting in a company capped at just $60m, could be bigger than Ngualla and then some. But there’s even more to the story.

Regardless of how intriguing Kameelburg is, it wouldn’t have progressed as far as it did without the experience and capabilities of its executives.

Skin, well and truly, in the game

Unlike many of its ASX-listed peers, Aldoro’s board has major skin in the game.

Speaking to Stockhead, executive chairwoman Quinn Li said the company’s board consisted of individuals who were significant shareholders who have invested millions of dollars, time and expertise before joining as directors.

“This alignment of interest ensures a sharp focus on cost control, operational efficiency and value creation,” she said.

“We bring in acumen, technical expertise, strategic vision and our personal resource to the company that empowers it to operate efficiently with a strong focus on the cost control, value creation and timing as well.”

One standout is non-executive director Dr Minlu Fu, a highly experienced exploration geologist who worked for Western Mining Corporation in both Australia and China between 1987 and 2000.

During this time, he contributed to the discovery of the West Musgrave nickel project in Western Australia, the Tampakan copper-gold deposit in the Philippines, and the Ernest Henry deposit in Queensland – one of Australia's largest, lowest-cost and long-life copper and gold operations now run by ASX giant Evolution Mining (ASX:EVN).

He is also an accomplished entrepreneur who discovered and developed six successful projects in Xinjiang, China. They include epithermal gold, VMS polymetallic and copper-gold systems, many of which are still in production.

Dr Fu’s use of modern technology to identify, discover and develop projects is also a hallmark of his success.

Li, meanwhile, is a successful entrepreneur with more than 20 years’ experience in diversified businesses. That includes a firm grounding in resources and development.

She joined the board with the aim of aggressively pushing the exploration agenda with tangible activity like drilling given that success via the drill-bit is what truely impacts a company valuation.

“As a shareholder myself, I know what shareholders want and how they expect the team to lead,” Li said.

“I also wanted to see real value creation. Currently, the company’s market capitalisation stands at just $60 million. 

“However, I firmly believe that the advancement of the mineral resource estimate, coupled with any potential outright sale of the project, will ultimately unlock and reflect the company’s true value.”

As for that last part, it’s a matter of timing and opportunity. But Aldoro is convinced of the scale of the project, which internal assessments have placed in league with the Niobec niobium and rare earths project in Canada.

It was sold by IAMGOLD to Magris Resources in 2015 for US$530 million, in an environment when demand for rare earths and niobium was far lower than it is today.

The recently announced sale of Peak Rare Earths and its Ngualla project in Tanzania to Chinese rare earths giant Shenghe Resources is another pointer to Aldoro’s future value proposition.

Peak has been valued in the deal at $150.5m, 2.5x Aldoro’s current market cap.

It is the strength of this executive team that enabled the company to tackle the challenges involved with delving into a completely greenfield operation located in a remote part of Namibia.

In recent months it has been transformed into what is increasingly looking like a potential world-class critical minerals deposit.

“You need significant resilience and capacity to set up all the teams and foundation in Namibia and achieve as much as we have in just 10 months with such a small amount of capital,” Li added.

Location of the Kameelburg project. Pic: Aldoro Resources

A rare earths winner

A hill of rare earths endowed carbonatite that literally sticks 275m out of the ground, Kameelburg was picked up by Aldoro in 2023 after standing out due to its potential scale, mineral potential and “compelling” geophysical signature.

However, little progress was made until Li started as the company’s non-executive chairwoman in April 2024.

Her involvement culminated in a full corporate restructure, including changes at the board level and the formation of a new, integrated team comprising professionals from Australia, Namibia, and China. 

This new team brought together expertise across management, exploration and drilling.

Li actually took on the role of executive chairwoman and project manager from September 2024, while Dr Fu served as the company’s non-executive director and exploration manager on a pro bono basis, leading to a program of complete soil sampling, magnetic and geochemical surveys, topographic mapping and trenching. 

Aldoro has since drilled 17 diamond holes totalling over 7000m with another two currently underway to round out the Stage 1 program.

Initial assays from the drill program returned highly encouraging results, with hole DD004D returning the highest grade yet of 293m at 3.67% total rare earths oxide equivalent (2.1% TREO, 0.21% niobium and 448ppm molybdenum) while DD006 extended the known zone of mineralisation by 650m to the southwest.

With the latest drill results, Kameelburg is now thought to cover an area of 1.2km by 650m, with mineralisation extending to a depth of 510m.

However, Li was quick to point out that the current depth of mineralisation is limited by the current rig’s capacity and that the company’s internal evaluation and analysis of this kind of carbonatite indicates it could extend to depths of between 800-1000m.

“We are going to look for the depths of this mineralisation in our further stage exploration,” she said.

Niobec Saint-Honoré, a key benchmark for Aldoro’s Kameelburg, holds around 640Mt of ore averaging 0.41% Nb2O5 and 1.63% TREO.

“To date, Kameelburg assays have shown comparable or better grades, averaging 0.34% Nb2O5 and 1.8–2.5% TREO, with a similar mineralogical profile featuring praseodymium, neodymium, lanthanum, and cerium,” Li said.

Kameelburg has the advantage of potential scale and mineability as the carbonatite body covers more than 160 hectares and is near surface compared to Saint-Honoré, which sits across a 40-hectare footprint buried beneath 100m of limestone and overburden.

“The current strip ratio is only about 0.6 to 1, which is very low and makes it as a very ideal candidate as a low-cost open pit mining operation,” Li added.

“This near-surface geometry gives us a significant advantage in capex efficiency and mining logistics, making the project especially attractive for strategic investors or acquirers.”

That this work was completed with a budget of less than $2m not only supports the company’s goal of maximising efficiency, but is also a noteworthy achievement in its own right.

Kameelburg drill plan. Pic: Aldoro Resources

The road ahead

Kameelburg also benefits from being in Namibia, which is ranked as the most mining friendly country in Africa and sits  2km  on the railway that runs direct to the main export port of Walvis Bay, about 355km to the southwest.

There is also a bitumen highway on the edge of the tenement ~1km away, and Kameelburg sits just 7km from the existing national power grid.

 “As the timeless adage goes—timing, location, and people are everything—and all three are firmly on Aldoro’s side,” Li said.

“No matter how you look at the project or from which angle, these factors come together to set it apart. While peer projects may share some similar attributes, few – if any – possess the complete combination that makes this project truly stand out.”

Aldoro is currently working with independent consultants to define a maiden resource at Kameelburg. This is expected to be released by the end of June or early July.

“Once we finish the MRE we will be able to validate our internal assessment that Kameelburg is one of the top three REE projects globally,” Li said.

The company will then move on EPL 7373 to explore the adjacent tenement EPL 7372, which features supergene mineralisation.

This has the potential to significantly increase the scale of the Kameelburg, with Aldoro even convinced it could one day rival world-class resources such as China’s Bayan Obo open pit, the world’s biggest light rare earths mine.

Aldoro will also continue metallurgical testing, particularly for REE & Mo given that niobium  had already achieved recovery rates of up to 62.4% through  early testing by Bureau Veritas Australia.

“We’re going to start an active engagement with strategic investors, which will include site visits and due diligence, and collaborate with marketing and offtake partners to raise the profile of the project as well,” Li added.

Non-core assets 

The company recently launched a strategic review of its non-core assets with Li noting the company preferred an outright sale as long as it reflects their valuation.

“We're trying to divest non-core assets, which might possibly provide capital inflow and reduce the dilution risk for shareholders. This will enable us to direct more resources into unlocking the full value of our flagship project,” Li said.

“However, we remain open to a farm-out or joint venture structure depending on the terms and alignment with our strategy. 

“We will assess all opportunities based on factors such as valuation, market conditions, internal capacity and development risk along with timeframe and other factors.”

Li did note that Aldoro’s strength lay in early-stage exploration and, as such, outright sales of its non-core assets remained the best option.

This article was developed in collaboration with Aldoro Resources, a Stockhead advertiser at the time of publishing. 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.