South Australian exploration and development company Marmota (ASX:MEU) has discovered rare earth elements (REE) through a first-ever reconnaissance program at the Muckanippie deposit, located within the Gawler Craton Gold Project.
The company drilled 121 reconnaissance holes mostly to a depth of 39m to test for REEs on the Muckanippie and Bradman tenements. This program found ‘highly elevated’ REE mineralisation hosted in clays close to surface in multiple locations across the tenements.
Standout results recorded include hole WI116 with 16m @ 1,258 parts per million (ppm) total rare earth oxides (TREO) from 12m, including 4m @ 1,528ppm; WI039 with 8m @ 1,255ppm TREO from 20m, including 4m @ 1,923ppm; and WI038 with 12m @ 1,151ppm TREO from 20m, including 4m @ 1,755ppm.
As the mineralisation was found close to surface, Marmota says exploration costs are low, large areas of ground can be tested quickly, and any deposits defined would potentially have low mining costs.
Commenting on the results, Marmota Chairman Dr Colin Rose says: “I am delighted that this program has already yielded excellent results, particularly for a first stage recon program, and is a testament to the excellence of our exploration team.
It is a style of exploration that suits Marmota particularly well: rapid, close to surface, inexpensive, and with considerable upside potential for our shareholders.”
“It is a style of exploration that suits Marmota particularly well: rapid, close to surface, inexpensive, and with considerable upside potential for our shareholders”
Marmota reports the combination of rare earth mineral bearing Archaean basement, and overlying zones of intensely weathered basement provide large areas which are geologically ‘highly prospective’ for potentially economic regolith clay hosted ionic REE deposits.
Primary REE mineralisation appears to have been released during basement weathering, transported in solution, and redeposited in ‘large’ flat-lying layers within a clay rich intensely weathered basement. These ‘large’, close to surface and regolith-hosted deposits are expected to be more economically viable than finding and developing primary mineralisation developed in basement.
The company also notes the REE mineralisation appears to be similar to published descriptions of the major Chinese clay hosted REE deposits. China currently produces more than 90% of the world’s ‘high-value’ rare earth magnet supply.
Marmota reports the close to surface regolith-hosted deposits offer ‘great potential’, and together with the results, show the presence of an emerging and ‘large’ new REE province.
Marmota is an ASX-listed exploration and development company focused on its portfolio of projects in South Australia. These projects include the 6,000km-square Gawler Craton Gold project, and the Junction Dam Uranium Project located 50km west of Broken Hill.
The company also has been active on the Champion prospect in the wholly owned West Melton tenement, located on the Copper Coast of the Yorke Peninsula.
Images: Marmota Ltd & iStock
