The company acquired Khaleesi, located in the East Yilgarn region 290 kilometres north-east of Kalgoorlie, in late May and is preparing to undertake a targeted, large-scale drill program in the second half of 2024.
RareX’s well-funded exploration campaign will commence in the third quarter with a plan to utilise field mapping, sampling and infill geophysics to identify targets for drilling in Q4.
The company believes the 1,000 sq km project has district-scale potential after it discovered an intrusive complex 20km in diameter using historical drill data coupled with a detailed assessment of geophysics.
RareX’s studies have identified that Khaleesi has the correct geochemical signatures to potentially host highly sought-after niobium, with similar alkaline complexes proven to be breeding grounds for niobium and rare earths mineralisation.
The company is also planning to follow up on a high-value niobium resource at its Cummins Range rare earths project in WA.
Recent baseline studies have further confirmed the value of the growing niobium portion of the deposit.
RareX released an updated mineral resource estimate for Cummins Range in late January 2024, noting the project contains Australia’s largest undeveloped rare earths deposit and the second-largest rare earths deposit overall, with a significant potential source of niobium.
The dual niobium project opportunity comes at a time when the critical metals market is attracting growing interest around the world.
The niobium market is forecast to grow at a 9.92% compound annual growth rate, with the price of the critical metal set to further increase with rising demand for its use in modern technologies, most notably its capacity to improve battery performance.
The recent discovery of niobium has already had a positive impact on a number of ASX-listed companies.
WA1 Resources (ASX: WA1) saw its share price climb 500% over 12 months, Encounter Resources (ASX: ENR) had a 60% share price jump after niobium drilling and mineralisation announcements from June 2023, Summit Minerals (ASX: SUM) recorded a 50% share price increase for niobium, rare earth elements and lithium project acquisitions and Rincon Resources (ASX: RCR) recorded a 170% share price increase in one month post a rare earth element and niobium mineral target announcement.
While RareX prepares to test the exciting potential identified at Khaleesi, it has a major focus on bringing Cummins Range to market, targeting offtake as a catalyst to final definition and development.
