Resource Base’s drilling has intersected further shallow, broad-scale clay-hosted rare earth elements, expanding the mineralised footprint at its flagship EL007647 tenement in Victoria.

Notable results from the latest batch of assays received are 3m grading 1,171 parts per million (ppm) total rare earth oxides (TREO) just 3m from the surface (MHAC220182) and 2m at 1,383ppm TREO from 8m (MHAC220202) with a top individual interval of 1m at 2,326ppm TREO.

Resource Basin (ASX:RBX) highlighted that 89% of the 28 holes returned to date have intercepted mineralisation with widths of up to 5m.

The company previously noted that 88% of the 86 holes drilled in EL007646 and EL007647 during July and early August had intersected clay-hosted REE topping out at 2,502ppm TREO.

It is now working towards establishing an initial JORC resource by the end of the first quarter of 2023.

“This is a great start to exploration on this tenement and we eagerly await similar results as drilling continues across EL007647,” non-executive chairman Maurice Feilich said.

“Tenement EL007647 is adjacent to and along strike from AR3’s Koppamurra REE Resource (81.4Mt at 785ppm TREO, total rare earth oxide) and today’s high grade REE hits confirm our view that this tenement has strong REE resource potential.

“Furthermore, it supports our hypothesis that the southeast of Australia has the potential to host multiple high value REE deposits that are low in deleterious elements, such as uranium and importantly are shallow, thus setting this region apart from many other REE prospective regions around Australia.”

Ongoing drilling

Aircore drilling is continuing on EL007647, which is located closely to and on strike from Australian Rare Earths’ Red Tail and Yellow Tail shallow, clay-hosted REE deposits.

Land access activities are focusing on EL007640 to allow for rapid expansion of the EL007646 mineralisation to the north after the spring rain season.

Capital raising

The company’s strong results are undoubtedly behind the strong support from new and existing institutional and sophisticated investors who have provided firm commitments to take up the placement of 10.05 million new shares priced at 7.5c each to raise $753,750.

Company chairman Maurice Feilich and non-executive director Brent Palmer also demonstrated their support with subscriptions for $100,000 and $50,000 worth of shares subject to shareholder approval.

Proceeds from the placement will be used to progress its Mitre Hill REE project to a targeted JORC resource by the first quarter of 2023 and new project evaluation.

 

 

 

This article was developed in collaboration with Resource Base, 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.