Chase Mining defines new ‘large scale’ rare earths and base metals project at North Barkly

Chase Mining (ASX: CML) reports that a review of recent geochemical and geophysical work by Geoscience Australia has resulted in the identification of a new rare earths and base metals project area on the northern Barkly Tableland in the Northern Territory.

The company identified ‘very large’ drainages with peak rare earths and niobium assay values in sediments, along with an historic 88m intersection of copper-lead-zinc mineralised black shale in core hole MD1, previously drilled by BHP.

The Barkly region was subject to intensified geophysical, geochemical, and geological investigation by Geoscience Australia over recent years, leading to the recognition of potential for repetitions of the large mineral deposits such as those mined at McArthur River and in the Mount Isa area.

The peak rare earths trend northwest to southeast through the project area and are strongly supported by peak niobium, scandium, tellurium, palladium and cobalt values in the centre

The company examined the large volume of data and identified this area as having the strongest indicators of a major rare earths deposit. The peak rare earths trend northwest to southeast through the project area and are strongly supported by peak niobium, scandium, tellurium, palladium and cobalt values in the centre. These elements are indicative of a carbonatite source, which may be one or more of the magnetic bodies close to the peak niobium.

Core hole MD1 had been drilled by BHP to 415m at a site 10 km north of the peak sample, and noted post-Mesozoic brecciation in sediments from 37.4m to 44.6m. Further down hole, weak copper, lead and zinc disseminations, stringers, and veinlets in contorted zones were identified between 311m and 399m.

No rare earths analyses were conducted, however the project area is characterised by a lack of outcrop and strong weathering, features which are conducive to rare earths enrichments in the near surface.

Chase Mining notes that base metal potential also exists within the project, with tuffaceous black dolomitic pyritic shale intersected by BHP in MD1A. This is the preferred host rock for major base metal deposits in this region.

Base metal sulphides indicate that a mineralising process has occurred locally, and viable grades may be found in a more favourable site nearby. The Geoscience Australia geophysical data demonstrates that this prospective conductive horizon underlies the entire project area, generally at about 350m depth.

The North Barkly project is comprised of three exploration licence applications totalling 1,950km² over pastoral lands on the Barkly tablelands, approximately 500km northwest of Mount Isa.

Moving forward, the company plans to conduct geochemical surveys and drilling post-grant in a bid to define the sources of the stream sediment metals and rare earths. It should be noted that some of the applications require native title agreements prior to grant.