Black Mammoth expands rare earth footprint with acquisition of Gallinas breccia pipes in New Mexico

Vancouver-based Black Mammoth Metals Corporation (TSX-V: BMM / OTC: LQRCF) has acquired a 100% interest in the Gallinas rare earth elements (REE) property in northern Lincoln County, New Mexico, through a combination of staking and a long-term lease-to-own agreement via its subsidiary, Antelope Creek Gold Corporation. The move marks a strategic extension of Black Mammoth’s portfolio into carbonatite-hosted REE deposits, aligning with growing institutional interest in U.S.-based rare earth supply chains.

The Gallinas property now consists of 49 federal unpatented claims covering approximately 376 hectares (929 acres), placing Black Mammoth in control of what is believed to encompass nearly all of the known intrusive breccia pipes—estimated to number around 15—within the historic Gallinas Mining District. Managed by the U.S. Forest Service, the district lies within the tectonically active Basin and Range province, near the transition to the Great Plains.

What makes the Gallinas Mountains attractive for rare earth exploration in 2025?

Black Mammoth’s entry into the Gallinas Mountains is notable due to the high potential of magmatic REE mineralization in the area. Historical exploration by the U.S. Bureau of Mines, along with subsequent mapping and sampling by geologists such as R. Schreiner in the 1990s, established that the Gallinas breccia pipes exhibit key markers of carbonatite systems, including potassic and sodic fenitization and carbonatization. These are considered signatures of hydrothermal activity commonly associated with economically viable REE deposits.

In its 2025 review, the U.S. Bureau of Mines ranked the Gallinas breccia system as one of the most economically promising rare earth systems in New Mexico, particularly for light rare earths commonly used in permanent magnets, defense electronics, and electric vehicle motors. Black Mammoth now controls the core of this system.

The firm intends to further evaluate the property’s potential through planned geophysical work, beginning with a magnetic survey as part of its work commitment. The timing aligns with an upswing in U.S. strategic interest in domestic REE production, following years of supply chain volatility and geopolitical concentration in China.

What are the terms of Black Mammoth’s lease and purchase option for Gallinas?

Antelope Creek Gold Corporation has signed a 40-year lease agreement with a private vendor for six of the 49 claims, along with an option to purchase the leased portion outright. Initial consideration includes a USD 10,000 payment within ten days of signing, followed by USD 5,000 annual payments starting from the first anniversary.

Should Black Mammoth choose to exercise the purchase option, it can acquire full ownership of the leased claims for USD 300,000. The vendor will retain a net smelter return (NSR) royalty of 1.25% on the leased claims, with an additional 0.5% NSR applicable to any claims in the agreement’s area of interest—excluding those staked independently by Black Mammoth. Importantly, half of the NSR may be bought out for USD 500,000 at any point prior to production, providing flexibility for future deal structuring.

The company has not issued shares or finder’s fees in connection with this agreement. A minimum work commitment involving a magnetic survey is required before the second anniversary of the deal.

How does this acquisition fit into Black Mammoth’s broader exploration strategy?

Since January 2024, Black Mammoth Metals has been aggressively expanding its portfolio of early-stage exploration projects across the western United States, covering a mix of gold, silver, copper, and rare earth assets. With the Gallinas acquisition, Black Mammoth Metals adds another rare earth element-bearing property to its expanding U.S. portfolio. This builds upon existing assets such as the Leadore Silver-Lead-Rare Earth Elements property in Lemhi County, Idaho, which combines both base and rare earth mineral potential. The company also holds the Blanco Creek Gold project in central Idaho, a site that includes multiple historic underground mines distributed along the regionally significant Blanco Shear Zone.

In addition, the explorer holds 100% interests in multiple gold and silver properties across Nevada, California, and Arizona, including the Clover, Amador, Quito, and South Ravenswood districts. While most of these are precious-metal focused, the strategic inclusion of rare earth properties positions Black Mammoth to potentially benefit from tailwinds in the critical minerals segment.

Institutional investors are closely tracking junior miners that hold U.S.-based rare earth projects, especially as government policy continues to favor onshore sourcing and processing capabilities. Black Mammoth’s land control over a historic breccia pipe system may elevate its strategic profile within this cohort.

What is the investor sentiment around Black Mammoth following the Gallinas acquisition?

As of August 26, 2025, shares of Black Mammoth Metals Corporation (TSX-V: BMM) have seen moderate volume activity on the TSX Venture Exchange, with investor attention modestly increasing after the Gallinas announcement. OTC trading under the LQRCF symbol also reflects heightened interest from U.S.-based retail and institutional players following a broader rally in REE juniors tied to critical mineral policy initiatives.

Analysts tracking the micro-cap exploration space note that breccia-hosted systems are underexplored in the United States relative to vein-hosted or carbonate replacement deposits. The fact that the Gallinas breccias have remained largely untouched by modern exploration techniques—despite their early recognition by federal geological agencies—adds to the speculative upside for early-stage investors.

However, institutional investors remain cautious given the capital intensity and permitting complexity often associated with REE development, particularly on Forest Service land. Future investor sentiment will likely hinge on geophysical results, drill permitting progress, and metallurgical testing outcomes.

What’s next for Black Mammoth Metals and its U.S.-based rare earth exploration ambitions?

Black Mammoth Metals is expected to initiate geophysical work at Gallinas within the next 12 months to fulfill its work obligation under the lease agreement. A magnetic survey will help delineate the extent of the breccia pipe system and define priority drill targets.

Looking ahead, analysts expect the explorer to follow a phased approach, combining historical data reinterpretation with surface mapping and geophysical profiling. A drill campaign would likely hinge on positive geophysical anomalies and could unlock further institutional participation.

The timing may work in Black Mammoth’s favor. With the U.S. Department of Energy and Department of Defense both expanding funding and grant programs for critical minerals exploration, juniors with credible REE assets and compliant land tenure structures are increasingly on the radar. While Black Mammoth remains pre-resource and early-stage, its concentrated focus on underexplored U.S. geology—and its increasing control over historically documented mineral districts—offers potential upside for long-term speculative investors.