Red Metal says Sybella step-out drilling confirms vast REE resource potential

RDM step-out drilling highlights large volume and tonnage potential at Sybella
Project hosts extensive magnet rare earth oxide mineralisation from surface
Infill drilling of the higher-grade zones is now the priority

Special Report: Red Metal’s assays from step-out drilling at its Sybella rare earths project in Queensland have confirmed its impressively large tonnage potential extending from surface.

The step-out drilling – over an 8km x 3km portion of the rare earth enriched Sybella granite – has revealed multiple, long intercepts of Magnet Rare Earth Oxide (MREO) mineralisation (neodymium, praseodymium, dysprosium and terbium) with many starting at surface and ending in mineralisation.

Notably, two wide parallel zones of significant strike length have been outlined with mineralisation from surface grading between 340-400 ppm MREO.

Both zones can confidently be extended beyond 120 metres in depth – highlighting the substantial volume and tonnage potential of Sybella.

Drill hole locations (black dots) on satellite imagery of the Sybella project. Pic: RDM

Large tonnage, low-cost operation

The company says the Sybella discovery is unique, being a granite-hosted deposit type which offers very large tonnage potential.

Not to mention, early-stage drilling, metallurgical and comminution studies have added to RDM’s confidence that a low-cost, low-capital, heap-leach processing option may prove feasible.

“Step-out drilling has successfully confirmed Sybella’s vast size potential and most importantly, it has shown opportunity for wide shallow zones of higher-grade mineralisation where potential starter pits could be initiated,” Red Metal (ASX:RDM) managing director Rob Rutherford said.

“This drilling together with our positive early-stage metallurgical test work has enhanced the potential for a bulk tonnage heap leach opportunity at Sybella.”

Infill drilling on the agenda

The Eastern Zone extends for more than 4.8km along strike and is up to 1.5km wide, covering an interpreted surface area of at least 3.6km2 and appears to remain open to the southeast.

The parallel Western Zone is 7.2km long and varies from about 400m to over 1.6km wide, covering an interpreted surface area of about 7.6km2.

Importantly, both zones show scope for more localised, wide intervals of higher-grade, near-surface mineralisation, which will be targeted for infill drilling and further metallurgical studies to facilitate early-stage mining studies.

“Preparations for infill drilling this season are underway and we look forward to announcing results from more detailed assessments on this exciting new drill data in the months ahead,” Rutherford said.

Heritage surveying ahead of planned infill drilling is also scheduled for September.

This article was developed in collaboration with Red Metal, 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.