RareX’s Cummins Range is proving to be a REE whale
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RareX continues to highlight just how much room its Cummins Range rare earths and phosphate project has to grow in after drilling returned thick mineralised intercepts.
Record hits of 513.8m grading 0.5% total rare earth oxides (TREO) and 5% phosphate from a down-hole depth of just 3m (CDX0033), which included very-high grade zones of 12.65m at 2.3% TREO and 5% phosphate and 7.8m at 5.3% TREO and 6% phosphate, and 288m at 0.4% TREO and 4% phosphate (CDX0038) have highlighted the potential for a very large bulk tonnage project.
Given that this had originally flagged potential net present value and internal rate of return – both measures of a project’s profitability – of $633m and 29% respectively along with a payback of 2.8 years, it is no surprise that managing director Jeremy Robinson is looking forward to what is shaping up to be a “highly significant” resource upgrade this quarter.
“The very wide intercepts seen in these holes show that Cummins Range is a very large bulk tonnage REE-phosphate deposit, capable of supporting a much larger project than what we scoped out initially last year,” he added.
“We are looking forward to a very busy start to the New Year, with more results to come, the impending resource upgrade and then providing further information on the expanded scope of the Project and our commercialisation pathway.”
Cummins Range – located in the mineral rich Kimberley region of Western Australia – currently has a resource of 18.8Mt of 1.15% TREO and 9.91% phosphate.
Hole CDX0033 was drilled as a scissor hole to support structural, geological and mineralisation modelling.
It was collared in the hanging wall and remained in the hanging wall to 667m where it passed into the Rare Dyke with lithologies, structural fabrics, contacts and mineralisation encountered in the hole all supporting the current geological model, which provides confidence to the upcoming resource upgrade.
Assays for the diamond portion of CDX0038, which has already returned several high-grade REE zones within the broader 288m phosphate alteration halo, are expected in February.
Further assays for infill holes are also pending though results to date have already confirmed the continuity of REE-phosphate mineralisation over 600m of strike, a width of 700m and up to 700m down-dip.
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.