Parabellum Resources Ltd (ASX:PBL) has taken a big step towards exercising its option to acquire 80% of the Khotgor REE Project in Mongolia with impressive grades of up to 4.1% total rare earth oxides (TREO) returned from the 2022 diamond drilling program.
Not only are the grades and broad widths highly encouraging and demonstrate the large scale and attractive grade, but mineralisation starts at or close to the surface.
They come at a time of strong and growing demand for rare earths owing to the surge in electric vehicle sales and strengthening global focus on green energy.
Strong intersections
New rare earth oxides (REO) results from 2022 drilling include:
- 79 metres at 1.1% REO from a depth of 4 metres downhole;
- 91 metres at 1.7% from 59 metres, including 40 metres at 2.5% from 63 metres;
- 67 metres at 1.7%, including 27 metres at 2.6% from 177 metres;
- 13 metres at 4.1% from 54 metres downhole;
- 54 metres at 1.4% from 105 metres downhole; and
- 9 metres at 3.4% from 37 metres downhole.
These results mark a very positive development in Parabellum’s plans to finalise the initial scoping study, which is due next quarter.
“Very impressed with progress”
Parabellum chairman Mark Hohnen said: “Parabellum is pleased to report the results from the 2022 drilling program.
"We continued to be very impressed with the progress that has been achieved at Khotgor over the past 12 months with the metallurgical test work, resource modelling, engineering studies and pilot plant construction and we look forward to presenting further project updates over the next few months.”
Shares higher
Investors are also impressed with the company’s shares edging higher by 1.01% to $0.50 in the first hour of trading.
The 2022 drilling program at Khotgor in Mongolia’s richly mineralised south comprised 14 diamond PQ diameter holes, for a total of 2,000.85 metres.
Of these holes, 11 were submitted for chemical analysis, comprising 1,093 samples covering 1,395 metres of core.
The holes contain mineralisation with significant intersections of rare earths grades in excess of 0.5% REO, with broad intersections of low radioactive (U+Th) material over most of the holes.
Some of the holes ended in mineralisation which may be further evaluated in a proposed drilling program later in the year.
Results from this drilling program are now being incorporated into the geological database.
In addition, metallurgical test work and engineering design is ongoing.
Positive indications
All indicators are pointing to Parabellum exercising its exclusive option with Temarise Limited (UK) to move to 80% ownership of the Khotgor REE Project.
The company also holds 100% interest in four projects in a highly prospective region of New South Wales, Australia.
As well as rare earths at Khotgor, Parabellum’s existing project portfolio offers exposure to copper and gold.