Shares in Heavy Rare Earths are on a barnstorming run today, up over 20% after the highest grade rare earths hits to date from the Cowalinya project.

Located 70km south-east of the historic gold town of Norseman on a single 230km2 exploration licence, a strike of 7222ppm total rare earth oxide is the highest to date from the project and believed to be the highest in the region, where assays have been returned from 49 additional drill holes in an exploration and resource expansion drilling program.

To date, rare earth grades exceeding Cowalinya’s 625ppm TREO resource grade have been encountered in thick intervals of up to 22m in 35 holes returned from the labs to Heavy Rare Earths (ASX:HRE).

It comes on the tail end of a massive and now completed 438-hole program to expand the resource, with 141 holes drilled during the 2022 campaign now returned.

Evidence continues to build for substantial zones of mineralisation west of the Cowalinya South deposit, where the record strike of 0.72% total rare earths oxide was hit over 2m in hole AC225.

Highlights in new intervals included:

  • AC225: 14 metres at 3217ppm TREO (32.5% magnet REOs) from 16 metres
    • including 6 metres at 5848ppm TREO from 24 metres
  • AC221: 10 metres at 2087ppm TREO (25.1% magnet REOs) from 17 metres
    • including 4 metres at 4266ppm TREO from 17 metres
  • AC223: 17 metres at 1069ppm TREO (26.3% magnet REOs) from 11 metres
    • including 4 metres at 1897ppm TREO from 23 metres
  • AC212: 14 metres at 1033ppm TREO (29.0% magnet REOs) from 22 metres
    • including 4 metres at 2040ppm TREO from 24 metres; and,
  • AC244: 7 metres at 895ppm TREO (30.9% magnet REOs) from 20 metres.

New zone

The super high-grade result in AC225 was encountered 900m west of the Cowalinya South resource, and sits among a cluster of 10 mineralised holes on adjacent 400m spaced drill lines.

HRE thinks the cluster could represent the northern continuation of a 2km wide zone of rare earth mineralization previously encountered in 11 consecutive holes 1.2km to the south.

There could be more to come as well. The mineralization remains open laterally, and assays have not been reported beneath the high-grade hit in AC225 and an interval from 26-54m in the adjacent hole AC226.

Rare earth assays are also pending for 90 holes that surround the potential new zone.

Meanwhile, to the east of Cowalinya South, further evidence has emerged of a second new zone of mineralisation, with grades as high as 895ppm TREO in holes AC243-248 in the north-east corner of the project.

Some of the assays for the remaining 297 drill holes yet to be returned will also illuminate the potential endowment of rare earths in the central and northern parts of the Cowalinya tenement.

HRE only listed on the ASX last August, but unlike many of its rare earths exploration peers it already has a resource in its back pocket, providing an ideal launchpad for growth as drilling expands the known mineralisation at Cowalinya.

It boasts a clay-hosted JORC inferred resource of 28Mt at 625ppm TREO, with 25% valuable magnet rare earths and 23% of the resource strategic heavy rare earths.

The commodity is largely dominated by production and processing out of China, but is seeing rising interest in the west from investors, automakers, wind energy companies and governments who want to diversify and localise supply of the key metals.

Magnet rare earths are key metals for the production of electric vehicles and wind turbines among other high-tech applications, making them key commodities for the transition to a green economy.

 

 

 

This article was developed in collaboration with Heavy Rare Earths, 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.