West Cobar Metals (ASX:WC1) has delivered a ‘major’ Mineral Resource Estimate (MRE) increase for its Salazar Clay-hosted Rare Earth Element (REE) Project in Western Australia.
The rare earths and battery minerals company has upgraded the project’s the JORC (2012) total mineral resource to 190 million tonnes @ 1,172 parts per million (ppm) total rare earth oxide (TREO), consisting of indicated and inferred resources at the Salazar deposits.
West Cobar, which has a $7.77 million market capitalisation, says this marks a near-fourfold increase on the previous MRE for the project.
On the back of the resource upgrade, shares in West Cobar Minerals were up 37.5% to $0.11 as of 10:49am AEST.
Commenting on the MRE upgrade, West Cobar Metals Managing Director Matt Szwedzicki says: “We are thrilled with the resource update at Salazar, which has resulted in several key outcomes being delivered.
“We are thrilled with the resource update at Salazar, which has resulted in several key outcomes being delivered”
Combined with the metallurgical testwork results at the Newmont deposit, the Salazar Project is an outstanding and substantial REE clay deposit with 190 million tonnes @ 1,172ppm. As we further progress metallurgical and beneficiation testwork, West Cobar Metals is moving closer to becoming a significant producer of clay-hosted REEs in Australia.”
The company adds that the resource update has resulted in a ‘high-grade’ nature of the REE resource being maintained, and a ‘high’ proportion of total magnet rare earths content is evident.
AMC Consultants was engaged to upgrade the Newmont deposit mineral resource and produce a maiden inferred resource for the O’Connor prospect.
Compared to the Newmont deposit, West Cobar notes that the O’Connor deposit is higher in praseodymium and lower in dysprosium and terbium. This reflects the underlying granitic origin of the REEs within the saprolite at O’Connor.
West Cobar says that the increased resources are based on a phase one aircore drill program comprising 283 holes for 9,340m of drilling. This drill program was designed to extend and infill the existing inferred mineral resource at the Newmont deposit, explore E63/1496 to the south of the Newmont deposit, and add inferred mineral resources at the O’Connor prospect.
The company adds that with recent drilling and metallurgical testwork building on over 8 years of exploration, metallurgical and technical studies, the Salazar Project is one of the most advanced clay rare earth assets in Australia.
The Salazar REE Project is located on non-agriculture undeveloped state land about 120km northeast of Esperance in Western Australia.
West Cobar Metals is a minerals exploration and development company with projects in Australia and the US. The company’s portfolio of assets includes the Salazar REE, Nevada Lithium, Hermit Hill Lithium, and Cobar West projects.
As of 30 June 2023, the company had $2.327 million cash and cash equivalents at hand, according to its latest quarterly report published on 25 July 2023.
Write to Aaliyah Rogan at Mining.com.au
Images: West Cobar Metals Ltd
