Namibia Critical Metals has launched a major five-month drilling campaign at its Lofdal Heavy Rare Earths Project in north-western Namibia as the company seeks to expand resources, test deeper mineralisation and potentially extend the future life of one of the world’s most significant heavy rare earth deposits.
The drilling programme, which commenced on 3 June 2026, will involve 83 reverse-circulation drillholes using two rigs, for a planned 13,000 metres of drilling across the project.
The campaign will focus on four strategic objectives, including establishing a maiden resource at the 1.5-kilometre-long xenotime-mineralised Area 5 system situated between the planned Area 4 and Area 2B pits, expanding measured and indicated resources at Areas 2B and 4, and testing the depth extension of the Area 4 deposit to approximately 800 metres below surface.
Namibia Critical Metals President Darrin Campbell said the campaign could significantly improve the project’s scale and long-term economics.
“We are excited about the potential impact of this drilling campaign of not only expanding resources in our deposits with already existing mine plans but also stepping into potential additional satellite resources at Area 5,” Campbell said.
He said the deep drilling programme at Area 4 could have the greatest impact on the future scale of the operation.
“Testing the extension of the Area 4 deposit to a depth of about 800 meters has the biggest potential impact for further mine life or increased throughput. Our experts in underground mining design are on standby to potentially guide the project to a significant expansion of the mine,” he added.
The programme includes 5,670 metres of systematic drilling along the Area 5 mineralised corridor, while diamond core drilling will be used to investigate the deeper extension of Area 4.
The drilling campaign comes as global competition intensifies for secure supplies of heavy rare earth elements such as dysprosium and terbium, which are critical for the manufacture of permanent magnets used in electric vehicles, wind turbines and advanced electronic technologies.
As drilling activities commenced, the company also hosted senior executives from its Japanese partners, Toyota Tsusho Corporation and the Japan Organisation for Metals and Energy Security (JOGMEC), for a site visit to Lofdal and for stakeholder engagements with senior Namibian government officials and local communities.
The visit highlighted Japan’s growing strategic interest in securing long-term supplies of critical minerals from politically stable jurisdictions such as Namibia amid rising geopolitical concerns over global rare earth supply chains.
Toyota Tsusho, the trading and business development arm of the Toyota Group, plays a central role in building global supply chains for materials used in automotive electrification, renewable energy systems and advanced manufacturing.
JOGMEC, a Japanese government agency responsible for securing stable resource supplies for Japan, has become one of the project’s most significant strategic backers.
The agency previously played a major role in financing Australian rare earth producer Lynas, providing US$250 million in loans and equity support in 2011 and investing a further US$134 million in 2023.
At Lofdal, JOGMEC has already completed the second phase of its earn-in agreement after funding C$10 million in project expenditures to secure a 40% interest in the project.
Under the agreement, JOGMEC can invest a further C$13 million to increase its interest to 50%, with total approved project funding currently at approximately C$19.97 million, representing 87% of the C$23 million earn-in requirement.
The agreement also grants JOGMEC the first right of refusal to fund the project through to commercial production and to purchase all production at market prices.
Namibia Critical Metals currently holds a 95% interest in the Lofdal project, while the remaining 5% is reserved for Historically Disadvantaged Namibians.
The company said the project remains fully permitted under a 25-year mining licence. It continues to position itself as a strategically important future supplier of heavy rare earth elements outside dominant global supply jurisdictions.
Lofdal is regarded as one of the few advanced heavy rare-earth projects globally, focused primarily on dysprosium and terbium, two elements considered essential for high-performance permanent magnets used in clean energy and defence technologies.
