Locksley Resources has entered into an agreement to acquire the highly prospective Mojave rare-earth elements (REE) exploration project located right beside the largest REE mine in the USA.

The project is adjacent to the giant high-grade Mountain Pass Mine owned by MP Materials, the largest producer of high-grade rare-earth materials in the Western world, delivering approximately 15% of the global rare earth supply.

The plan is to acquire 100% of the issued capital of Enigma Strategic Minerals (ESM) which, through its wholly owned subsidiaries, owns 201 mineral claims making up the North Block (164 claims totalling 14.9km2) and South Block (32 claims totalling 3.5km2) of the Mojave project.

Locksley Resources (ASX:LKY) also has the option to acquire an additional five mineral claims (total 0.34 km2) making up the El Campo Prospect area.

Notably, five of the 25 rock-chip samples collected at the El Campo Prospect have returned high grade TREO results of 3.74% to 9.49% within a 6m-wide mineralised zone.

Proven history of REE production in the region

The United States and Australia affirmed that acceleration is pivotal to creating an inclusive, clean energy economy – and rare earths are indispensable for the functioning of modern society, powering technological innovations and enabling advancements in renewable energy, electronics, and defence systems.

And the company says the project has the potential to host numerous REE deposits.

Locksley MD Steve Woodham said the deal gives the company’s shareholders exposure to the burgeoning rare earths sector in a location within eyesight of one of the world’s richest rare earth deposits.

“This transaction brings together highly skilled teams both in Australia and the USA with a view to expanding on existing strong exploration targets,” he said.

“Multiple high grade carbonatite veins have been identified and will be followed up as part of the imminent exploration program.

“The directors of the company are of the view that the proposed transaction will create a significant opportunity to expose shareholders to an underexplored and highly prospective region with a proven history of REE production.”

Locksley Resources asx lky

Pic: Location of the Mojave project prospects relative to MP Materials Mountain Pass Mine and claims.

Potential for ‘significant’ REE discoveries

At Mojave, 13 targets, 19 interpreted geophysical features and four REE mineral prospects have been identified for field review.

Occurrences of dykes of mid-Proterozoic intrusive rocks including syenite, shonkinite and carbonatite have been documented in the El Campo claim blocks and are interpreted to also be found in the North and South blocks.

The Proterozoic carbonatite terrane at Mountain Pass hosts the largest resource of REEs in North America.

The proximity of the El Campo Prospect to the Mountain Pass Mine and high-grade rockchip samples provides strong potential for further significant REE discoveries within the exploration package.

Locksley has now received firm commitments for a $4 million placement at $0.06 to fund exploration at the Mojave and Tottenham projects, and supply working capital.

This article was developed in collaboration with Locksley Resources, 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.

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