Red Metal says its latest step-out drill program has confirmed two huge, parallel magnet rare earths zones at its Sybella project that sits 20km from the Queensland mining town of Mount Isa, highlighting the impressive resource potential at the site.
The company’s latest assays featured strong shows for all four magnet rare earths –neodymium, praseodymium, dysprosium and terbium – in zones of significant strike length and width and infill drilling is now a key priority. Many of the long intercepts started from surface across the 8km-by-3km portion of the Sybella ground that was subjected to the drill bit.
Management says a discovery of an Eastern zone extending for more than 4.8km along strike and with a width of up to 1.5km and a 7.2km-long Western zone comprising widths that vary from 400m to more than 1.6km, show the project’s rare earths potential.
The interpreted surface areas at the site are at least 3.6km for the Eastern zone that remains open to the south-east and 7.6km for the Western zone. The step-out drilling was completed across two separate spacings of 800m by 200m and 800m by 400m.
Mineralisation uncovered from surface was in the range of 340 parts per million to 400ppm magnet rare earth oxides (MREO), consisting of 320ppm to 360ppm neodymium-praseodymium (NdPr) and 20ppm to 40ppm of the even more valuable heavy rare earths combination of dysprosium-terbium (DyTb).
Red Metal managing director Rob Rutherford said: “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. This drilling, together with our positive early-stage metallurgical testwork, has enhanced the potential for a bulk-tonnage heap leach opportunity at Sybella.”
A heritage survey is planned next before the company kicks off an infill drill program. It will target both sizeable zones as it believes they show the potential for further near-surface, high-grade MREO.
Management says both zones may extend down to a depth of at least 120m. It has provided the drill data from the 7451m predominantly air-core (AC) drillholes and a selection of reverse-circulation (RC) drilling that targeted deeper holes, in addition to previous drill results, to a consultant to define the resource potential of the project and advise on required spacings for the infill program.
The infill drilling will enable the targeting of metallurgical testwork and assist with early-stage mining proposals.
Red Metal is also conducting ongoing bottle roll and column leach tests using weak sulphuric acid across extended residence times to optimise its metallurgical testing outcomes. The company’s previous metallurgical testwork gave the go-ahead for a spend on expensive drill programs that may lead to a potential mining operation.
Management says the granite-hosted soft ore that appears to be abundant in its ground can offer simple crushing and processing options that are expected to provide an economic edge to the project.
Red Metal has not been shy in past months in describing its promising project as both “globally unique” and a “metallurgical nirvana”. It believes it is “all about the ore” because of the advantages offered by the soft, soluble rare earths that can be easily extracted using a low-acid solution.
Management adds there are many advantages that come with the soft ore, ranging from the relatively simple and time-saving crushing process, to reduced processing costs from energy savings, low impurity levels after leaching and no requirement for an expensive hydrometallurgical plant for extreme heating and cracking of the ore.
A recent positive for Sybella’s potential has come via a lift in the US dollar price for the in-demand NdPr magnet oxides, with an increase in the past four weeks from near US$53,000 (AU$79,500) per tonne to more than US$59,000 (AU$88,600) per tonne today, according to Shanghai Metals Market pricing.With the latest assays demonstrating the potential scale of the magnet rare earths at the project’s site, Red Metal will be keeping a watchful eye on the improving price outlook as it assesses the value of its operation.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Craig Nolan
