MinRex on fast track to potentially bigger cobalt and scandium resource at NSW project
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Special report: MinRex Resources has found six new areas prospective for high-grade cobalt and scandium mineralisation during due diligence at a NSW project it is acquiring.
Further desktop work has highlighted the prospectivity of the region around the Pacific Express project with a cobalt hit of 13,200 parts per million (ppm), which equates to 1.32 per cent – well above the 0.1 per cent considered economic at the current cobalt price.
Due diligence also highlighted a scandium reading of 159 ppm within the now-granted NSW tenement.
“The geology team has made solid inroads with the due diligence process, which has significantly aided the board’s understanding of the Pacific Express project and highlighted the potential exploration upside for cobalt and scandium mineralization,” executive director Simon Durack said.
JORC refers to the mining industry’s official code for reporting exploration results, mineral resources and ore reserves, managed by the Australasian Joint Ore Reserves Committee.
The first area – Pacific Highway prospect – has a legacy indicated resource of 1.52 million tonnes at 0.83 per cent nickel, 0.07 per cent cobalt and 30 ppm scandium.
Mineral resources are categorised in order of increasing geological confidence as inferred, indicated or measured.
MinRex (ASX:MRR) now plans to fast track its review of the legacy drilling data for all six high-priority areas, looking specifically at the cobalt and scandium mineralization.
This will help the company put together its maiden drilling program.
An initial assessment by the geology team identified a large laterite target from geophysical aeromagnetic imagery.
This delivers significant exploration upside for cobalt, scandium and nickel mineralisation.
MinRex has already started building a new geological model to define a JORC-compliant cobalt and scandium resource.
Previous owner of the Pacific Express project, Jervois Mining (ASX:JRV), drilled 506 holes in the region between 1996 and 1999.
This led to a JORC (1996) resource of 19.2 million tonnes at 0.1 per cent cobalt, 40 grams per tonne scandium and 0.63 per cent nickel.
While the previous prolonged downturn in base metals saw Jervois let its tenements go, the recent uptick places MinRex in an ideal position to potentially leverage the legacy data to fast track a resource.
MinRex’s geology team has reconciled geophysical aeromagnetic interpretations of the Pacific Express project with legacy drilling to highlight areas for resource expansion and identify new potential laterite targets.
This highlighted the high-grade Pitkin prospect, which includes 53 holes within the tenement boundary.
Notably, there is an underlying magnetic anomaly – potentially open mineralized laterites – that is materially larger than the Pitkin prospect.
MinRex says this is a clear target for the initial drilling program and it could potentially result in an expansion of the resource.
“Moving forward, the board’s main objective is gaining an understanding of the potential inferred resource size which complies to the JORC (2012) code and receiving preliminary geological views on the WA projects,” Mr Durack said.
Along with the Pacific Express project, the company is also conducting due diligence over two WA projects after striking a deal in March to acquire Clean Power Resources Pty Ltd.
The Knight and Dragon projects are located near St George Mining’s (ASX: SGQ) tenure, which delivered solid drilling results of 3m at up to 6.4 per cent nickel, 3.6 per cent copper and 0.2 per cent cobalt.
Desktop work on the two projects are now underway and MinRex expects to release a preliminary report soon.
This special report is brought to you by MinRex Resources.
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