Desert Metals has identified a potentially significant new area of rare earth mineralisation at its Dingo Pass Project in WA – which is adjacent to the 101Mt at 840ppm TREO resource at Krakatoa’s (ASX:KTA) Tower Prospect. 

The eastern limit of the Tower resource is truncated by the Dingo Pass tenement boundary, and remote sensing and radiometric data suggests the REE mineralisation is likely to continue into the Dingo Pass Project.

Plus, field reconnaissance with a portable XRF tool by DM1 personnel has further confirmed the presence of elevated REEs within the tenement east of the Tower deposit.

“Considering that Krakatoa’s defined resource does not typically outcrop at surface, these surface sample results are particularly encouraging,” Desert Metals (ASX:DM1) says.

Inexpensive exercise to drill test

The company is confident of the potential for a new, major, rare earths system, and plans to drill test a 9km long zone along strike to the east of the Tower deposit with 5000m-10,000m of aircore drilling in early 2023.

Mineralisation in the area is typically flat lying, shallow and hosted in the clay horizon which leads to relatively quick and inexpensive drilling campaigns to test the mineralisation.

Recent drilling of conductors at Dingo Pass didn’t intersect significant nickel mineralisation, however the holes did intersect prospective mafic intrusives and there remain several promising conductors with coincident mafic-ultramafic outcrops within the project.

DM1 intends to complete more detailed mapping and soil geochemistry in order to prioritise these for drilling in the latter half of 2023.

Pic: Dingo Pass Project, Tower REE Prospect – Planned Drilling (black dots).

Belele drilling planned in the new year

In addition, a 150-hole reconnaissance Program of Work (POW) drill program has been approved at the company’s Belele project to test a 15km zone of untested greenstone belt for gold and base metals within the Carbar Shear Zone.

DM1 intends to complete this program once it has completed a heritage survey early in the new year.




This article was developed in collaboration with Desert Metals, a Stockhead advertiser at the time of publishing.


This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.