KEY POINTS
- Saga Metals is drilling its early-stage Wolverine rare earths project in remote Labrador, targeting a shallow deposit that dips gently across 26 square kilometres.
- Prior Catalyst drilling returned 48.8 metres at 0.77 percent total rare earth oxides, with heavy rare earths averaging 24 to 28 percent of the total.
- Saga bought Wolverine for $1 million in July and plans 3,000 metres of drilling, but roads, power and a resource estimate remain years off.
Saga Metals is racing to define a rare earths find at its Wolverine project in remote Labrador, drilling a shallow, potentially large deposit that could carry valuable heavy rare earths.
At a treeless valley 240 km north of Happy Valley-Goose Bay, geologists examine fresh cores as crews drill day and night. Moreover, chief geological officer Michael Garagan said Wolverine holds massive exploration upside and could reshape northern Labrador, which currently hosts only Vale’s Voisey’s Bay and Rio Tinto’s IOC mine.
Shallow, large and heavy
The deposit’s geometry stands out. Specifically, its mineralized volcanic tuff, formed more than a billion years ago, dips gently at about 20 degrees and reaches just 25 to 50 metres deep across 26 square kilometres. Consequently, Garagan called it an excellent low-cost, low-strip-ratio mining target.
The grades look promising too. According to Saga, Catalyst’s earlier drilling returned 48.8 metres at 0.77 percent total rare earth oxides, including higher-grade zones, while heavy rare earths averaged 24 to 28 percent of the total. Furthermore, heavy rare earths such as dysprosium and terbium power high-performance magnets, making them especially sought after.
A long road to a mine
However, the project remains early stage. Saga bought Wolverine’s owner, Catalyst, for 1 million dollars in July and plans at least 3,000 metres of drilling this year, with about 500 metres done so far. Additionally, Garagan said the company is only three holes in and cannot yet commit to a resource date.
Infrastructure poses another hurdle. Specifically, Wolverine lacks road and power links, and a road to tidewater would be needed if it becomes a mine, though the federal First and Last Mile Fund could help finance it. Nevertheless, Garagan said such details sit a good year away.
Still, the timing may favor rare earths. Since Western governments are scrambling to secure critical minerals dominated by China, sentiment is shifting, even if opaque pricing keeps financing hard. Ultimately, Saga shares traded at 47 cents on Friday, valuing the company near 49.9 million dollars.
