ASX-listed mineral resource exploration company SKY Metals (ASX:SKY) has uncovered widespread rare earth element (REE) mineralisation over 3 targets within the Doradilla Project, located near Bourke in New South Wales.
The company says the Doradilla-Midway-3KEL (DMK) line is a 16km-long skarn that has been the focus of ‘extensive’ exploration for tin (Sn), and tungsten (W) in the 1970s and 1980s. SKY selected a number of samples from historic drilling in 1979, 2007, and 2012, along with samples from its drilling over the last 3 years to assay for REE mineralisation.
A selection of samples were taken from a total of 26 drillholes and returned consistent intercepts of over 1,000 parts per million (ppm) total rare earth oxides (TREO) from all holes from all 3 deposits on the DMK line.
SKY reports the results to date have established ‘strong’ REE mineralisation over multiple kilometres at all 3 targets, demonstrating that there is very large-scale REE mineralisation present. Furthermore, the company notes the results to date show the most valuable neodymium-praseodymium-dysprosium-terbium (Nd-Pr-Dy-Tb) represent over 20% of the TREO on average at present.
The company’s share price had soared 62% to $0.081 as of 9am AWST.
Commenting on the REE discovery, SKY Metals Chief Executive Director (CEO) Oliver Davies says: “The discovery of REE mineralisation at Doradilla further demonstrates what an extraordinary and unique system SKY is exploring at Doradilla.
The scale of mineralisation of the DMK system is already remarkable at over 16km long, it has the potential to develop into an extremely large source of REE, particularly Nd-Pr-Dy-Tb representing over 20% of the TREO on average and up to 40% in some intervals.
“The discovery of REE mineralisation at Doradilla further demonstrates what an extraordinary and unique system SKY is exploring at Doradilla”
SKY is eager to grow the discovery of the widespread and strong REE mineralisation with a follow-up drilling program and further sampling of historic drilling to assays for REE. SKY plans to work quickly to advance the excellent REE opportunity which has been discovered at Doradilla.”
SKY reports all holes tested for REEs are open in all directions with the majority of REE intercepts also open either up-hole, downhole, or open both up-hole and down the hole. The company also notes none of the holes re-assayed for REE were drilled to specifically target REE mineralisation.
In addition to the 3 known deposits on the DMK line, there are also multiple kilometres of strike along the DMK line which have not been tested with any drilling.
At the Doradilla Target, a selection of historic drill samples were re-assayed to test for the potential to host REE mineralisation. These samples were predominantly from aircore holes drilled by YTC Resources to test the oxide near-surface tin mineralisation in 2012. ‘Significant’ results include DRAC012 returning 8m @ 4,379ppm TREO from 32m including 2m @ 8,011ppm TREO from 34m.
The company says the Midway Target has also shown strong, broad, and widespread REE mineralisation. The most recent drilling here was conducted in 1984. SKY tested a sample from a drag bit air drillholes named AMW01-27 which were sourced from the W B Clarke Geoscience Centre which houses the NSW Core Library.
At the 3KEL Target, SKY reports many of the samples assayed here came from aircore drilling completed by YTC in 2007, along with drilling completed by SKY since 2019.
Similar to Doradilla and Midway, the company says the 3KEL target shows ‘excellent’ potential to host strong, and widespread REE mineralisation.
SKY reports in combination with the metallurgical testwork, the company aims to further grow this exciting discovery along the 16km DMK Line with re-assaying of available samples from the historic drilling and SKY’s early drilling in 2019. The company notes this is a uniquely ‘cost-effective’ opportunity to continue to grow this resource. The recent drilling of the 3KEL Target over the last 12 to 18 months will also be resampled to test for REE mineralisation.
SKY Metals is an ASX-listed company focused on the exploration and development of ‘high-value’ mineral resources in New South Wales. The company’s portfolio of projects include the Tallebung, Doradilla, and New England Tin projects, the Iron Duke and Galwadgere Copper-Gold projects, and the Cullarin-Kangiara, and Caledonian-Tirrana Gold projects.
Images: Sky Metals Ltd & iStock
