Meaty REE, phosphate resource upgrade on the cards for RareX

RareX is likely to deliver a significant resource upgrade at its Cummins Range project after diamond drilling returned outstanding, thick rare earth element and phosphate intercepts.

Hole CDX0023 returned a 373m intercept grading 0.3% total rare earth oxides (TREO) and 4% phosphate from a down-hole depth of 14m including a cumulative 51.7m at 1.3% TREO while CDX0024 hit 264.3m at 0.4% TREO and 4% phosphate from 150m including a cumulative 71m at 1.1% TREO.

And while the results confirm the significant scale and potential of the mineralised system at Cummins Range, there is more to come for RareX (ASX:REE) given that assays are pending for a further 49 holes in a program aimed at testing the down-dip extension to fresh rock rare earths and phosphate mineralisation on the Rare Dyke to 500m below surface.

Drilling has stopped for the wet season with a total of 16,000m of reverse circulation and diamond completed at the project in Western Australia’s Kimberley region in 2022.

“The wide intercepts continue to come through for Cummins Range and we expect to see a strong flow of news through until January next year now the program is complete,” managing director Jeremy Robinson said.

“Once we have received all assay results, work will commence on what we expect to be a significant resource upgrade in the first quarter of next year.

“The mineralised system is now wider than it is long, with dimensions reaching 750m of strike, a width of 900m wide and extending to a depth of 500m.”

Drill results

RareX noted that multiple rare earth intercepts of greater than 0.5% TREO were returned in CDX0023, most of which are located in the hanging wall position.These include 8m at 1.4% TREO and 3% phosphate from 131m, 5.3m at 1.8% TREO and 3% phosphate from 297m, 8.85m at 1% TREO and 6% phosphate from 325.3m, and 4.45m at 1.8% TREO and 5% phosphate from 347.8m.

The higher grade zones also returned an average of less than 80 parts per million uranium-thorium.

Meanwhile, hole CDX0024 includes higher grade zones of 27.7m at 1% TREO and 3% phosphate in the Rare Dyke hanging wall contact, 5.2m at 1% TREO and 4% phosphate, and 5.85m at 2.1% TREO and 4% phosphate in the footwall zone.

Recent activity

RareX has been busy driving Cummins Range closer towards production with the signing of a binding memorandum of understanding with ORD River District Co-operative Ltd (ORDCO) to progress commercial off-take and product development opportunities for phosphate products.

Ore sorting work has also successfully doubled the feed grade of Cummins Range ore, drastically improving project economics by reducing the plant size and transport requirements from mine to the beneficiation plant while maintaining the REE product tonnage.

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.