RareX has eyes on McPhillamys look-alike in the Lachlan Fold Belt
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Special Report: RareX could be on the hunt for a McPhillamys look-alike in the Lachlan Fold Belt after it was returned full ownership of the Orange East gold project.
Orange East is just 15km along strike from Regis Resources’ 2-million-ounce McPhillamys project that is currently in the final stages of permitting ahead of a potential final investment decision.
RareX (ASX:REE) says an initial geological review has identified several advanced prospects, with the Gunnarbee prospect standing out due to its ‘particularly striking similarities’ to McPhillamys.
Both are hosted in the Silurian volcaniclastic rocks of the Anson Formation; have coincident surface anomalies such as gold, arsenic, barium and bismuth; and feature potassium radiometric high anomalies.
Gunnarbee is totally untested by modern exploration.
Executive director Jeremy Robinson told Stockhead that the prospect was a dead ringer for the McPhillamys deposit and that the company was looking forward to drilling it.
“It is early days for us on the project … we are still undecided as to whether to have a crack at it ourselves or whether we will try and look for another joint venture partner,” he noted.
“But if we do go it alone, we are happy to do it ourselves as its very cheap exploration.”
RareX is currently reviewing project data before planning its next steps.
Orange East was originally subject to a joint venture with Alkane Resources (ASX:ALK), which had the right to earn up to 60 per cent in the tenement.
However, while Alkane was in the process of negotiating a final access agreement for the tenement with landholders, it made the ground-breaking Boda copper-gold porphyry discovery and decided to focus its attention there.
Alkane has now returned the tenement to RareX as required under the farm-out agreement.
The news comes just weeks after RareX’s Canadian partner Kincora Copper kicked off a six-hole deep drilling program at the Trundle project in the Lachlan Fold Belt.
RareX has a 35 per cent free-carried interest in Trundle and a 9.9 per cent interest in Kincora Copper.