A week after revealing a big rise in interim earnings Lynas Rare Earths has surprised with the results of single drill hole that seems to have significantly upgraded the attractiveness of the company’s key Mount Weld deposit in WA.
Lynas said on Wednesday that the analysis of the hole showed “continuous Rare Earth Element (REE) mineralisation along the 1,020 metres drill core”.
Lynas told the market that a 1-kilometre-deep exploration hole drilled into the Mount Weld deposit from the existing mining pit has uncovered fresh deposits of the key rare earths ore below the current life of mine design and ore reserve.
According to the statement from Lynas the single hole has found new deposits of key rare earths in higher-than-expected grades (richer than those in the known area of Mount Weld).
Mount Weld was reputed to be the one of the richest deposits of rare earths in the world but if the results of this hope are confirmed by follow up drilling, its importance will grow. It is the basis for Lynas’ slow evolution to being the largest producer of rare earths outside of China.
The successful completion of the 1 km deep diamond drill hole was announced on 2 August 2021. The drilling program was partially funded by the Western Australia Government Exploration Incentive Scheme (EIS).
In Wednesday’s statement Lynas said the results of the single drillhole “reveal a large area of new exploration target in the fresh carbonatite below the zone of surficial weathering profile.”
“Lynas will establish a new exploration program on the identified target. This program is an important element in continuing to develop the Mt Weld resource to meet growing demand for Rare Earth materials.
“Detailed metallurgical testing will be conducted on the drillcore samples to guide development of a suitable ore beneficiation process for producing ore concentrate from the transition and fresh carbonatite.
Lynas CEO Amanda Lacaze said in the statement that she was “delighted to announce the results of this 1km deep core drilling and analysis which show a large endowment of Rare Earth Elements below the current Mt Weld open pit mine.”
“The Mt Weld ore body is remarkable in its geology including its REE enrichment. We are excited to establish a new, targeted exploration program with the goal of meeting accelerating customer demand for many years to come.”
“The results confirm continuous Rare Earth Element (REE) mineralisation along the 1,020 metres drill core at an average grade of 2.22% REO, no cut-off grade applied.
“Apatite Zones at shallower depths show enriched REE grade (7m zone of 7.6% REO at 0m to 27m below the current pit floor and 23m zone of 13.67% REO at 42m to 62m depth below the current pit floor).”
Lynas said its current open pit mine is about 65 metres deep and is producing REE ore from the saprolite zone.
Previous exploration activities focussed on the saprolite zone and shallow depths of less than 150 metres. The drilling of the single was carried out to obtain a better understanding of the mineralogy and REE mineralisation within the fresh carbonatite below the Mineral Resource.
Analysis of samples obtained from the drill hole also revealed that the rare earths mineralisation “continued beyond the end of the drill hole.”
Lynas shares rose nearly 3% to $10.93 on Wednesday.
