Could rare earths play Sagon have another Mt Weld on its hands?
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Special Report: At Cummins Range – already the #4 biggest rare earths project in Australia – Sagon has uncovered an extra ~9km of potentially mineralised strike. The explorer is now planning a much larger maiden drill program than initially intended.
Sagon Resources (ASX:SG1) has already inked a maiden resource at the recently acquired Cummins Range project, based on historical resource and geological data.
That resource — 13 million tonnes grading 1.13 per cent total rare earths oxides (TREO) — makes it the fourth biggest project in Australia, just ahead of Northern Minerals’ (ASX:NTU) more advanced Brown’s Range project.
And yet this could just be the foundation of something much, much bigger at Cummins Range.
A detailed review of historic exploration data has uncovered at least 9km of additional strike prospective for rare earths.
The existing resource covers just 1km.
Most of the drilling outside this resource was too shallow to effectively test the base of ‘weathered channels’ where the best mineralisation tends to occur, Sagon says.
The existing Cummins Range resource is mostly associated with the Central Channel deposit, which remains open at depth and to the east for at least 350m:
But there’s a lot more where that came from.
The existing North Channel deposit, for example, is open to the west and at least 1.2km to the east, where shallow drilling returned assays up 1m at to 2 per cent total are earth oxides (TREO) plus yttrium (Y).
And then there’s the veritable bounty of prospects yet to be tested with deeper drilling at all, like the 1.8km Northeast Ring, Southeast Boundary, and Southwest Hook targets.
Given these “highly encouraging” results – and some striking similarities to Australia’s largest, highest grade TREO resource at Mt Weld — Sagon is now planning a much larger drill program than initially intended.
“The size of the carbonatite complex and the relationship between magnetic lows and the TREO resources at [Lynas Corp’s (ASX:LYC)] Mt Weld is remarkably similar at Cummins Range,” Sagon told investors.
“Since Mt Weld is the largest and highest-grade TREO resource in Australia (55.4Mt at 5.4 per cent TREO) the potential for further resources and even higher grades is an exciting prospect at Cummins Range.”
High grade intersections at Cummins Range, like such as 22m at 5.7 per cent TREO+Y, including 6m at 10.8 per cent TREO+Y indicates the project has excellent potential for grades similar to Mt Weld.
Sagon will now kick off a seismic survey this month to identify high priority drill targets, ahead of the now expanded diamond and RC drilling program next quarter.