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Drilling commences as Government support for critical minerals projects ramps up
RareX Limited (ASX: REE) (RareX) is pleased to announce the start of the 2022 field season at its 100%- owned Cummins Range Rare Earths Project in Western Australia, with the largest drilling program in the Project’s history now underway.
HIGHLIGHTS
- Major drill program underway with up to three drill rigs in action.
- Drilling designed to convert Exploration Target (ASX: 16 February 2022) to Resources.
- Drilling to continue through to October, fully-funded by recent capital raising.
- RareX notes major Government support for critical mineral projects.
- NdPr Prices up 370% in recent times on the back of booming demand.
The program will quickly ramp up with up to three rigs expected to be in operation through until October to drill out the Exploration Target of 23Mt at 1.6% TREO to 41Mt at 2.4% TREO1 as announced on 16 February 2022, positioning Cummins Range as one of the largest rare earths deposits in Australia.
The potential quantity and grade of the Exploration Target is conceptual in nature, and there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.
The exploration program is fully-funded by the Company’s recent capital raising of A$10.6 million, as announced on 3 March 2022.
RareX also notes recent increases in Government support in the critical minerals sector including rare earths. This ongoing transformation in terms of support and the significant change in the financial ecosystem for the critical materials sector is highlighted by the fact that two Australian peers in the rare earth sector recently secured significant financing support from the Australian Government.
On 4 April 2022, Iluka (ASX: ILU) secured $1.2 billion worth of support from the Federal Government's Export Finance Australia for their domestic Eneabba rare earth oxide refinery in Western Australia. The significance of this transaction is emphasized by the fact that the same agency granted $719 million in total loans, guarantees and bonds the previous financial year.
On 2 February 2022, Hastings (ASX: HAS) secured a loan of up to A$140-million from the Northern Australian Infrastructure Fund (NAIF) for their Yangibana mixed carbonate rare earth project in Western Australia and, on 16 March 2022, Arafura (ASX: ARU) was awarded grant funding of $30 million under the Federal Government’s Modern Manufacturing Initiative (MMI).
Additionally, $239 million in loans have been granted to EcoGraf Ltd (ASX: EGR) and Renascor Resources (ASX: RNU) through the Critical Minerals Facility.
The strong underlying increase in demand for rare earths – fuelled by the rapid transition towards electric mobility, spearheaded by electric vehicles – has been reflected in a continuous price increase since April 2020.
The price for 1kg NdPr oxide has increased from US$37/kg NdPr Oxide to US$138/kg NdPr Oxide (Source: SMM – Shanghai Metal Exchange) today, representing a price increase of approximately 370%.
RareX Managing Director, Jeremy Robinson, said: "These recent events clearly show that we are witnessing a fundamental change in the Australian critical materials space. We believe that RareX can play a vital role in this sector through the development of our Cummins Range Project. We are excited to have commenced this fully funded important drilling program to take the deposit to the next level as a globally significant critical minerals project.”
This announcement has been authorised for release by the Board of RareX Limited.
Click here for the full ASX Release
This article includes content from RareX Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
REE:AU
E-Tech Resources
Overview
E-Tech Resources (TSXV:REE, FSE:K2i) is a Halifax, Nova Scotia-based exploration company developing its high-grade Eureka rare earths project in Namibia, a top-tier and mining-friendly jurisdiction in Southern Africa. The company is focused on exploring for neodymium and praseodymium, two critical minerals necessary for the global energy transition goals.
Part of the rare earth elements (REE) family of minerals, neodymium and praseodymium are essential to high-performance magnets used for electric motors, generators and electric vehicles. As demand for REEs is expected to increase by 400 to 600 percent over the next few decades, the focus is shifting toward developing a supply chain outside of China, which has long been a dominant supplier of the world’s REE.
The company's fully owned flagship Eureka project is located in the Erongo Mining Corridor of Namibia. The Eureka project has a maiden inferred resource of 310 kt at 4.8 percent TREO with grades ranging from 1 to 16 percent. The company believes there is strong potential to increase the inferred and indicated mineral resource by at least 0.5 to 1.5 million tonnes, based on a technical scoping study.
E-Tech Resources completed a combined diamond drilling and reverse circulation drilling campaign at Eureka in 2022, with final assays indicating significant intersections of 11.2 meters at 1.2 percent TREO, 2.2 meters at 2.4 percent TREO, 8.8 meters at 1 percent TREO, and 6.3 meters at 1.9 percent TREO.
In addition, preliminary pXRF drilling results1 for the Adder Target have confirmed a discovery zone with the presence of REE mineralization identified in multiple zones in a drill hole correlating with REE mineralization identified on surface. Mineralization remains open at depth and along strike.
The results are part of the ongoing extended exploration of one of the 17 targets identified through ground radiometric and magnetic geophysical surveys and a geological mapping program completed earlier.
The Eureka project is strategically located near several mines and projects, including Rossing Uranium's Rossing Uranium mine, QKR's Navachab Gold mine, Namib Lead and Zinc Mining's Namib Lead and Zinc mine, and AfriTin's Uis mine. Eureka has excellent infrastructure and access to a major highway, a railway, roads, power, water and skilled professionals.
The company has taken steps to expand its land holdings within the Erongo Mining Corridor in Namibia, by entering into an agreement to acquire an 85-percent interest in EPL 874, which lies adjacent to and surrounds the company’s EPL 6762. The approximately 165-square-kilometer EPL 8748 contains a significant portion of the prospective Eureka Dome, the geological feature hosting mineralised REE-bearing carbonatites. Approximately a third of the Eureka Dome falls within the boundary of E-Tech Resources’ EPL 6762 and the remaining portion falls on the adjoining license EPL 8748.
E-Tech Resources is committed to maintaining the highest ESG standards to sustainably supply the green economy and adhere to the guidelines of the United Nations' Sustainable Development Goals. E-Tech Resources plans to create a sustainability committee to guide its ESG efforts and will be conducting further environmental and social impact assessments as part of ongoing feasibility studies to maintain responsible sourcing. E-Tech Resources' Eureka project is currently expected to have no major negative socio-environmental impact on the region.
The company is exploring the potential of a feasibility study for a rare earth separation plant in Namibia. Recognizing the need for a de-risked supply chain for these strategic critical raw materials, E-Tech is collaborating with Ondoto Rare Earth, a private Namibian company developing the high-grade Ondoto bastnaesite deposit in northern Namibia, and Namibia Critical Metals (TSXV:NMI, OTCQB: NMREF), which is developing the tier-1 heavy rare earth project, Lofdal, a globally significant deposit of the heavy rare earth metals dysprosium and terbium. Together, the three companies will participate in a joint venture known as Rare Earth Alliance Namibia (REAN).
E-Tech Resources also signed a memorandum of understanding (MOU) with Novamera to evaluate the use of surgical mining and Novamera's technologies as the extraction method for the Eureka Project. The MOU sets out a series of milestones that include a conceptual surgical mining economic desktop evaluation (commencing immediately), Guidance Tool calibration activities and a bulk sample which could provide a more cost-effective and faster path to production, while also radically reducing environmental and social impact.
After evaluating the results of the current exploration program, the company engaged Gecko Namibia and Flightec Namibia to support ongoing exploration and development activities on the project. Phase 1 ultra-high resolution UAV-borne magnetic survey will be conducted by Flightec.
Company Highlights
- E-Tech Resources' fully owned flagship Eureka project is located in the Erongo Mining Corridor of Namibia and has a maiden inferred resource of 310 kilotons at 4.8 percent total rare earth oxide (TREO) with significant growth potential.
- The Eureka project is strategically located near several mines and projects, as well as excellent infrastructure, with access to a major highway, a railway, roads, power, water and skilled professionals.
- E-Tech Resources is focused on exploring for neodymium and praseodymium, critical minerals essential to permanent magnets for electric vehicles.
- Early metallurgical testing has indicated the potential to be one of the simplest REE projects to process in the world.
- Recently completed ground geophysical and exploration mapping programs at the Eureka project identified 17 robust targets for exploration drilling
- Preliminary pXRF drilling results1 for the Adder Target have confirmed a discovery zone with the presence of REE mineralization.
- E-Tech Resources is committed to maintaining the highest ESG standards in adherence to the United Nations' Sustainable Development Goals.
- E-Tech Resources is led by a highly skilled management team with a proven track record of success in the mining industry and capital markets.
Get access to more exclusive Rare Earth Investing Stock profiles here
High Priority REE Targets Identified At The Company’s Critical Elements Project
HIGHLIGHTS
- High priority REE (rare earth element) targets identified by expert geophysical consultants, Southern Geoscience
- Multiple radiometric anomalies and structural zones prospective for pegmatite intrusions identified
- REE targets are located on the Company’s exploration licences E09/2354 and E09/2377 in the highly prospective Gascoyne Province, Western Australia
- Initial exploration program to commence later this month, comprising ground reconnaissance, rock chip sampling and geochemical analysis
The high priority targets sit within tenements held by Reach Resources wholly owned subsidiary, Critical Elements Pty Ltd (Critical Elements), that were acquired in November 2021. The Critical Elements Project lies in close proximity to successful explorer Kingfisher Mining (ASX:KFM) and are also only ~80km south of the Company’s Skyline tenure, which is immediately adjacent to Hastings Technology Metals Limited (ASX: HAS “Hastings”), Yangibana REE development which has a current Ore reserve of 16.7Mt at 0.95% TREO for 158Kt (Refer HAS ASX Announcement 27 July 2021). (Refer to Figure 1).
Figure 1: Reach Resources regional locations
Southern Geoscience focussed on structural interpretation and target generation based on airborne magnetic data, with additional detail derived from interpretation of radiometric data and satellite imagery. Resulting from the interpretation was the identification of six REE targets within Reach tenure. A full list of identified targets within Reach tenure is included in Table 1 and depicted in Figure 2.
All targets display geological and structural complexity combined with previously identified prospective critical metal and/or REE mineral association.
Figure 2: Targets and Magnetics
Costeaning has been undertaken previously within the project areas and returned significant results including 12.4% Ta2O5, 32.0% Nb2O5, 0.95% WO3 and 0.25% Sn, from selective rock chip samples (Refer ASX Announcement 29 November 2021). REEs were not analysed at that time however thorium anomalism, which has been shown by Kingfisher Mining and others to be associated with REE mineralisation in the region, has also been identified on Reach tenure from the radiometric data for the area interpreted by Southern Geoscience.
Click here for the full ASX Release
This article includes content from Reach Resources Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
