ABx Group has struck more success with best yet high grade rare earths intercepted in the first pass drill results from step-out drilling at its Deep Leads prospect in Northern Tasmania. The company has tabled multiple elevated rare earth hits including 493 parts per million neodymium and a solid 1,878ppm total rare earth oxides over a three-metre mineralised section.
The latest drill result represents a solid 250 metre extension of rare earth mineralisation towards the east.
Importantly, the latest drillhole has revealed the geological setting in which the bulk of the rare earth mineralisation sits is further into the broken and altered bedrock than originally expected in areas of high-water flow.
The strike length of the Deep Leads rare earth project now exceeds a serious 3.25km and it is open in several directions with similar prospects scattered across ABx’s tenure.
Assays from 20 more recent drillholes are still pending from the recent campaign on the western flank of Deep Leads and ABx says several even thicker zones of prospective geology were intercepted in the pending drill holes.
The nature of rare earth mineralisation at Deep Leads has a distinct advantage over traditional hard rock rare earth deposits in that it is dominated by the four highest value, super magnet compatible rare earths being neodymium, praseodymium, terbium and dysprosium. The suite of elements is considered super-magnetic and are sought after by the wind turbine, smart phone, electric vehicle and military electronics markets.
Dysprosium in particular, considered a “heavy” rare earth is currently only mined in China.
Similar heavy rare earths deposits are tough to find as the aptly named elements suggest. There is only one other pilot plant capable of producing heavy rare earths in Australia that is operated by Northern Minerals in northern WA, however there are only five actively producing heavy rare earth mines in the world and importantly, they are all in China.
Mineralisation at Deep Leads is considered by the company to be at least 3 metres thick with the possibility for upside. The results from the latest drillholes show they ended in mineralisation and drill contractors were not able to drill further due to a mixture of wet clays and broken rock with high water flow rates. A specialist multi-purpose drill technology is being assembled to alleviate the penetration issue in future drilling.
The Deep Leads rare earth’s follow the ionic adsorption clay style of mineralisation that is easily developed and processed at a lower cost than hard rock rare earth equivalents.
ABx is one of the few publicly listed explorers to have successfully discovered an ionic adsorption clay rare earths deposit.
The company believes it has discovered a large, low grade mineralised rare earths zone that appears to show better grades in correlation with stronger saline water flow rates.
With no sign of the rare earth bull market waning anytime soon and the commodity prices doubling over the last 12 months, ABx is sitting in an increasingly enviable position as its rare earths arsenal continues to grow in unison with the insatiable global demand for electric vehicles.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Matt Birney
