Special Report: Red Mountain aims to finalise the company-making Mt Mansbridge rare earths project acquisition next month.
An ongoing due diligence process has only reinforced just how prospective the 245sqkm Mt Mansbridge project really is, Red Mountain (ASX:RMX) says.
The project is located in the Kimberley, an emerging, but already globally significant, rare earths province.
High profile neighbours include freshly minted producer Northern Minerals (ASX:NTU),which has shown the area to be highly prospective for critical and high value heavy rare earth elements (HREE).
HREE’s are ‘rarer’ than light rare earths, which means they fetch a higher price.
And demand has only increased since a government clamp down on illegal mining in China, which currently accounts for an incredible 98 per cent of global HREE production.
An example is dysprosium — used in electric vehicles, lasers, wind turbines, nuclear reactors and other military applications – which is now fetching prices 58 per cent higher than the start of the year.
Red Mountain says Mt Mansbridge, which hosts over 20km of rare earths target geology, is highly prospective for HREE’s like dysprosium.
The Killi Killi prospect, for example, is located in a similar geological setting to Northern Minerals’ (ASX:NTU) Dazzler and Iceman deposits at Browns Range.
“Until recently, the East Kimberly region of WA has long been overlooked for heavy rare earths,” Red Mountain says.
“The presence of xenotime [HREE hosting] mineralisation at the Mt Mansbridge Project, presents RMX with an opportunity to capitalise on this and determine whether there is an economically viable concentration of REEs.”