Basin Energy (ASX:BSN) has begun drilling at the Newmans prospect within the Sybella-Barkly Project in Queensland while receiving commitments to raise $1.1 million.
Through this initiative, the company intends to follow up on a 2023 shallow auger drilling program, which identified a 3km strike of neodymium and praseodymium anomaly.
Basin Energy has contracted United Drilling Services to conduct the reverse circulation campaign.
Previous drilling identified mineralisation to the end of holes, including 5m @ 578 parts per million neodymium-praseodymium oxide. The deepest auger sample was completed to 11m at this anomaly.
Basin intends to test for deeper continuity to mineralisation with this drilling campaign.
Managing Director Pete Moorhouse says the Newmans prospect is “a near-term target for the company”.
“The 3km strike anomaly defined by the 2023 auger program is laterally extensive, open at depth, and sits within the same granite as Red Metal’s Sybella discovery — a compelling reference for the scale we are testing,” Moorhouse says.
“It’s pleasing to have the rig turning and for the early drilling to be progressing well, with assay results anticipated late May to early June.
“Considering the positive initial metallurgical test work that our peer has completed within similar granites of the Sybella batholith, with further processing results anticipated from Red Metal in the near term, and the project’s proximity to Mount Isa, we see this as an exciting emerging district for rare earth discoveries.”
Funded for exploration
Basin will fund the drilling campaign with its existing placement, raising $1.1 million through the issuance of 44 million shares at $0.025 each.
The share price represents a 19.3% discount to the last closing price of $0.031 on 21 April 2026.
Shares are expected to be placed on 29 April 2026.
The company did not engage a broker or lead manager to assist with this offering to save costs.
“The strong support shown through today’s strategic and institutional investor-led financing is a powerful endorsement of the company’s strategy,” Moorhouse says.
“It leaves Basin Energy well funded and with the opportunity to aggressively follow up on drilling success at Newmans as results come to hand and to continue advancing the broader portfolio.
“Beyond Newmans, preparations are well advanced for the CEI (Collaborative Exploration Incentive) co-funded exploration in the southern half of the Sybella Project, including RC drilling on our heavy rare earth targets, currently anticipated in late Q2, along with the CEI-funded electromagnetic survey in Q3.”
As reported by Mining.com.au, Basin secured a total of $349,065 from two separate CEI grants, administered by the Queensland Government.
Basin Energy is a mineral explorer and developer focused on green energy metal deposits required to fuel the clean energy transition.
Write to Maddison Elliott at Mining.com.au
Images: Basin Energy
