RareX poised to start rare earths drilling at Mt Weld lookalike
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Special Report: Exploration has started on RareX’s ‘exciting’ Weld North anomaly, which may be similar to the world-class Mt Weld rare earth mine 84km to the south.
All drill pads have been cleared and high-impact, inexpensive air core drilling will begin later this week to test under the cover sequence across the full width of the interpreted intrusion.
RareX (ASX:REE) says this will assess if the source of the large circular magnetic anomaly is a carbonatite intrusion, similar to the high-grade Mt Weld mine, or a granitic intrusion.
Drilling will take between two to three weeks, with results expected to be available in January.
“This is a really exciting drilling program which will deliver our first real assessment of the geology of the intrusive complex at Weld North, and whether it has a similar make-up to Lynas’ world-class Mt Weld mine to the south,” managing director Jeremy Robinson said.
“While our core focus remains on the development of our flagship Cummins Range Rare Earths Project in WA, success from this drilling at Weld North could deliver a substantial re-rating for RareX.
“We are also greatly encouraged by the recent surge in pricing for key rare earths elements, driven by the rapidly growing use of Rare Earth Permanent Magnets.”
RareX’s exploration push at Weld North comes as rare earths prices increased significantly in China.
Importantly, the price of high value neodymium-praseodymium (NdPr) oxide has increased by about 40 per cent since the beginning of this month to about $US68 per kg.
NdPr is commonly used in the manufacture of permanent magnets that are essential for electric vehicle (EV) motors and offshore wind turbines.
With EVs really starting to motor along this year and a lack of investment in new rare earths mines, it is clear why prices have started climbing.
Weld North is defined by a circular magnetic anomaly with a diameter of 5km that has a similar magnetic anomaly pattern to the Mt Weld carbonatite complex, a 4km diameter circular magnetic anomaly with total rare earth resource of 54.5 million tonnes grading 5.4 per cent total rare earth oxide.
RareX notes the magnetic anomaly amplitude is less pronounced at Weld North, which could indicate that less magnetite is present in its rocks.
However, this may not have an impact on the rare earths potential as many rare earths-bearing carbonatite phases are non-magnetic. The company noted that the majority of its flagship Cummins Range resource is closely associated with non-magnetic carbonatite intrusive rocks and shear zones within a circular diatreme structure.
The company added that the circular shape and size comparison to Mt Weld indicates that the Weld North magnetic anomaly is highly prospective for a significant rare earths discovery.
This article was developed in collaboration with RareX, 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.