Rackla Metals Inc. (RAK:TSX.V) announced it has successfully secured a five-year Type A land-use permit from the Sahtu Land and Water Board for its Lentung project, paving the way for comprehensive exploration activities scheduled for the 2026 season, according to a May 21 release by the company.
The permit facilitates the establishment of a 49-person camp, a drill-based mineral exploration program, and the upkeep and utilization of existing trails and access routes at the site. Located in the Tombstone tungsten belt of the western Northwest Territories, approximately 60 kilometers north of the former Cantung tungsten mine, the Lentung project is now fully equipped and authorized for exploration.
"We are grateful for the support and feedback we received throughout the permitting process from communities across the region, including the Dehcho First Nations and Sahtu Dene and Metis, to local organizations, regional regulators, and government," said Rackla Chief Executive Officer Simon Ridgway. "Since staking Lentung during the 2025 exploration season and acquiring the full historical database compiled by Union Carbide, we have been keen to return the drills to the property and revitalize this world-renowned belt with a new wave of tungsten exploration."
He continued, "We view the Northwest Territories as a favorable jurisdiction, due to the clear and efficient permitting process that supports responsible mineral exploration, and we recognize the long-term economic opportunities exploration can bring to the region."
Historically, the Lentung property, previously known as Lened, underwent extensive exploration by Union Carbide Exploration Corp. from 1977 to 1982. This exploration included 26,900 meters of diamond drilling, various geochemical and geophysical surveys, detailed geological mapping, trenching, and comprehensive metallurgical, engineering, economic, and environmental studies.
In 1982, Union Carbide sought a mining permit through the Federal Environmental Assessment and Review Process (EARP) but retracted its application and ceased operations due to falling tungsten prices, as noted in a Rackla press release dated March 30, 2026. Since then, the site has seen no significant development.
Rackla is a Canadian junior exploration company focused on mining rare earth, gold, and tungsten in the eastern Yukon and western Northwest Territories in Canada.
What's Next?
For the upcoming 2026 season, Rackla said it plans an ambitious exploration program at Lentung. This includes setting up a new 49-person camp, conducting 4,000 meters of diamond drilling to twin 27 holes to verify and update the Union Carbide findings, and undertaking 6,000 meters of reverse circulation drilling to further delineate known tungsten occurrences.
The drill cores from campaigns in the 70s and 80s remain on the property, allowing Rackla to quickly plan a recovery and resampling this summer. The company will also begin conducting archeological and environmental studies to supplement Union Carbide's historical studies.
Additionally, the company intends to perform surface trenching to uncover shallow tungsten deposits, clear and repair 25 kilometers of existing roads and trails, and produce a National Instrument 43-101 resource calculation post-exploration. The field program is set to begin on May 26.
The strategic proximity of the Lentung project to the historically significant Cantung mine, which operated intermittently until its closure in 2015, underscores the potential for revitalizing tungsten mining in this region amid favorable market conditions, the release noted.
Rackla Metals said it is actively engaging with local communities and First Nations, including the Sahtu Dene First Nation and the Dehcho First Nations, to foster and maintain collaborative relationships.
Expert Expects Success For This Year's Exploration
On March 31, 2026, Bob Moriarty from 321gold.com shared his insights with Streetwise Reports regarding the prospects of Rackla Metals.
"While Rackla's 2025 couldn't determine the source of the widespread gold their surface exploration program discovered, they did raise CA$10 million while investors were hurling money at good juniors," Moriarty said.
He continued, "Rackla has come up with a Plan B backup with a nearby tungsten property with known values. So, one way or another, I expect the 2026 program to be successful."
According to a piece by Maddison Elliott for Mining.com.au on May 26, Rackla Metals "has raised CA$3.44 million in a non-brokered private placement to fund exploration at its portfolio of assets in the western Northwest Territories and Yukon."
The piece continued, "Rackla says Lentung's supply of 'high-grade' tungsten could contribute to the re-establishment of tungsten mining in the region if Cantung restarts."
Metal Important to Many Industries
According to a May 21 report by Justin Ho for Marketplace, "Tungsten is a metal that's incredibly important to all kinds of industries — especially manufacturers that need to cut other kinds of metal. Most of the tungsten used in the U.S. comes from China, which controls roughly 80% of the world's supply."
Trade tensions between the U.S. and China have significantly impacted the tungsten market, causing prices to skyrocket by 300% over the past year, as reported by the CRU Group, Ho wrote. The sharp increase in tungsten prices is attributed more to export controls than tariffs, highlighting the complexities of the global trade war and its effects on commodity markets.
Tungsten's unique properties, particularly its high resistance to heat, make it invaluable in various industrial applications. Chris Blench, CEO of Mavericks Manufacturing Partners, emphasized the metal's critical role in manufacturing processes that involve high temperatures. "And so that makes it ideal for handling the temperatures required to melt other metals without it melting itself," Blench explained.
He further noted that tungsten electrodes are essential in welding operations for the energy and defense sectors, stating, "All of our aircraft, missile systems, the nuclear power plants for submarines and aircraft carriers, they'll use a lot of this particular kind of a process, using tungsten."
Tungsten prices have soared to unprecedented levels, driven by a combination of China's stringent export controls and a spike in military demand, which has significantly strained supplies, a Reuters report published by Mining.com on April 29 noted. Tungsten's exceptional properties, such as its ability to resist extreme heat and its hardness, make it indispensable in aerospace and defense applications, where components must endure high temperatures and severe conditions.
The cost of ammonium paratungstate (APT), a key intermediate in tungsten production, has escalated sharply, reaching over US$3,000 per metric ton in Rotterdam, marking an increase of more than 200% since the beginning of the year. China, which holds a dominant position in the global tungsten market, has tightened its grip by implementing new export restrictions and reducing mining quotas in 2025. Furthermore, in December 2025, China announced that only 15 companies would be permitted to export tungsten during 2026–2027.
Streetwise Ownership Overview*
Rackla Metals Inc. (RAK:TSX.V)
| Date | Old Symbol | Old Shares | New Symbol | New Shares |
|---|---|---|---|---|
| 01/10/15 | RAK | 5 | RAK | 1 |
Outside of China, Almonty, a significant tungsten producer, initiated mining operations at its mine in South Korea in March, with plans for a Phase 2 expansion expected to be operational by 2027. Meanwhile, the United States, which currently lacks active commercial tungsten mines, is exploring several projects aimed at reducing reliance on Chinese tungsten, though no definite timeline has been set for these projects to begin production.
According to Project Blue, the global tungsten market was estimated at about 129,000 metric tons in 2025. The defense sector, which currently accounts for approximately 12% of the market, is anticipated to expand its share to about 15% by 2027-2028 due to ongoing needs for stockpile replenishment. The automotive sector, which consumes 25%-30% of tungsten, remains the largest consumer for now. However, the rise of electric vehicles may reduce this demand. Cristina Belda, a senior analyst at Argus, noted that defense-sector demand is increasing by about 8% annually. If this trend continues, the defense sector could surpass the automotive industry as the primary consumer of tungsten by the mid-2030s.
Ownership and Share Structure1
Rackla Metals Inc. has a market cap of CA$24.93 million, with 166.45 million shares outstanding. The company has a 52-week range of CA$0.08-CA$1.00.
Institutions hold 0.23% of shares, while Management & Insiders own 27.64%. The rest are in Retail.
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- Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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1. Ownership and Share Structure Information
The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.
