RareX has just completed a A$10 million placement at 9c, a 10-18% discount to recent prices to complete an extensive drilling campaign program to prove up the new exploration target of 23-41 million tonnes at 1.6-2.4% total rare earth oxides for the primary zone to a depth of 400m.
That’s above the existing 18.8 million tonne at 1.15% TREO and 0.14% niobium resource.
Drilling, in WA’s Kimberley region, is expected to begin within weeks and is planned to target 30,000m, with a focus on the rare earths, but the program will also evaluate the recent high-grade phosphate discovery adjacent to Cummins Range.
Some funds will advance development studies.
Lead managers Canaccord Genuity and Bridge Street Capital Partners reported strong demand.
RareX directors will seek shareholder approval to invest a further $650,000.
Managing director Jeremy Robinson said the “overwhelming demand”, including from many first-time investors, was a strong endorsement in the potential of Cummins Range.
“If we are successful, Cummins Range would rank as a top-three rare earths project in Australia and one of the largest and most significant new rare earths development assets globally,” he said.
It is one of only two known carbonatite-hosted rare earth deposits in Australia, in addition to Lynas Rare Earth’s nearby Mt Weld mine, where a 1km deep hole confirmed mineralisation at depth.
RareX’s recent drilling has extended the mineralisation at depth, with “exceptional assay results” from earlier diamond drilling, such as 21.2m at 2.5% TREO in the north-western extension area, starting from surface.
RareX secured Cummins Range in 2019 and completed the first drilling at the project in almost a decade.
It has $5 million at the start of the year.
