Australian Rare Earths (ASX:AR3) has submitted an exploration licence application which adjoins and is contiguous to the Overland Uranium Project in South Australia.
Once the licence is granted — which is expected to be during the September quarter this year — the exploration licence will increase the tenure by a further 1,000km2 — taking Overland’s total area to 3,000km2.
The company will now begin extensive stakeholder engagement in preparation for on-ground exploration work. Australian Rare Earth is preparing for an exploration environment protection and rehabilitation program and is compiling and interpreting all available geological and geophysical data.
Australian Rare Earths says this will feed into planning regional geophysical surveys designed to define basement architecture and identify potential paleochannel sequences within the Renmark Group.
Managing Director and CEO Travis Beinke says this strategic expansion builds on the company’s recent addition of uranium into its exploration portfolio.
“Given our strong cash position, we are excited about the prospect of assessing additional opportunities to further enhance our exploration portfolio of energy transition metals.”
Australian Rare Earths, which has a market capitalisation of $20.26 million, previously announced it had entered into an option agreement to purchase 100% of privately held Valrico Resources, which holds the rights to the Overland project.
The company believes the project area holds similar promise to Boss Energy’s (ASX:BOE) Honeymoon Mine, targeting paleochannel sediments of the Renmark Group which are geologically analogous to those in the Eyre Formation.
Australian Rare Earths is a mineral explorer and developer focused on its wholly owned flagship Koppamurra Project in South Australia.
As of 31 December 2023, the company had $10.053 million in cash and cash equivalents at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Australian Rare Earths
