Ragnar Metals’ (ASX:RAG) June quarter was underpinned by a new heavy rare earths discovery and investment in gold producer Kaiser Reef (ASX:KAU).
The company identified a new zone of heavy rare earth elements from 41 rock chip samples taken along strike of its Olserum Deposit in Sweden during the quarter.
The aim was to extend the known outcropping heavy rare earth element mineralisation discovered in July 2023.
Assays returned grades of 1.7% and 0.6% total rare earths oxides (TREO) with up to 40% heavy rare earths oxides (HREO), 4.1% and 2.3% TREO with up to 40% HREO; and 2.3% and 0.7% TREO with up to 65% HREO.
Ragnar says the assays “strongly support the widespread prospectivity” of the company’s 50km2 package.
Channel sampling at the Flaken Prospect to the north of the Olserum deposit, meanwhile, showed multiple wide mineralised outcrops with average grades of up to 1.5% TREO and up to 35% HREO.
The company says the channel composites of partially exposed mineralised bedrock remain open and untested.
The scale potential has been further confirmed by 3D inversion modelling of detailed magnetic data, which identified three untested targets.
The June quarter also saw Ragnar take a 16.3% stake in Kaiser Reef, which is currently producing gold from the A1 Gold Mine.
As part of its investment, which stemmed from Ragnar’s participation in a placement priced at $0.15 per share, the company receives a 1.5% net smelter royalty for five years starting 1 July 2025.
The investment was approved by Kaiser shareholders in mid-July and makes Ragnar the largest shareholder in the company, which has a market capitalisation of $22.3 million.
Ragnar also holds 16.7 million options exercisable at $0.22 before 31 July 2028, which, if exercised, would take the company’s interest to 22.6%.
Executive director Eddie King says Ragnar invested in Kaiser Reef to support the company’s strategy to significantly increase production and cash flow from its fully permitted Victorian gold operations.
Ragnar, which has a market capitalisation of $8.5 million, had cash and cash equivalents totaling $9.3 million at the end of the June quarter.
Ragnar says it continues to review and assess new potential exploration and investment opportunities.
Write to Angela East at Mining.com.au
Images: Ragnar Metals
