Exploration blitz could ‘well and truly re-rate the stock’, RareX says
Special Report: A strongly supported $3m placement will advance the flagship Cummins Range rare earths project “to the next stage”, RareX (ASX:REE) says.
The $3m will be used to fund an upcoming maiden drilling program at the Weld North project, as well as complete a resource update, initial scoping studies, and further exploration at Cummins Range.
RareX directors also collectively subscribed for $90,000 worth of shares in the placement.
It’s always reassuring for investors when management have ‘skin in the game’.
Weld North — a circular magnetic anomaly target — is 84km north of the Mt Weld carbonatite-hosted rare earth element (REE) deposit held by miner Lynas Corporation (ASX:LYC).
The circular shape and size comparison to Mt Weld indicates that the Weld North magnetic anomaly is highly prospective for a significant rare earths discovery, RareX says.
Early stage air-core drilling will test below cover to determine whether the source of the magnetic anomaly is caused by a carbonatite intrusion, similar to Mt Weld.
Cummins Range, in the East Kimberley Region of WA, is one of two known rare earth deposits bearing carbonatites in Australia. The other is Lynas’ Mt Weld.
Cummins Range currently has an inferred resource of 13 million tonnes at 1.13 per cent total area earth oxides (TREO).
That includes 22.1 per cent neodymium and praseodymium (NdPr).
RareX will upgrade this resource and kick off early stage project development studies.
Managing director Jeremy Robinson says investors can look forward to a news-flow-rich period with the potential to deliver “numerous catalysts that could well and truly re-rate the stock”.
“We are very much looking forward to testing the Weld North project, which shows some compelling early-stage similarities to Lynas Corporation’s Mt Weld rare earths deposit, which underpins one of the world’s highest-grade rare earth mines,” he says.
“Air-core drilling is set to commence at Weld North before the end of the year, providing our first real insight into the source of the large-scale magnetic anomaly and its potential to host a significant new discovery.
“In addition, the funds will also be used to progress our Cummins Range rare earths project, including the delivery of an updated mineral resource estimate and the commencement of initial scoping studies.
“Further news-flow on this front is imminent, with outstanding assays from the recently completed drilling expected over the next 2-3 weeks.”
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.