VR Resources Ltd (TSX-V:VRR, OTCQB:VRRCF) has reported the remaining geochemical data from the five-hole drill program completed last fall on its Hecla-Kilmer rare earth elements (REE) critical metal discovery in northern Ontario.
The junior exploration company said data have now been received for all five holes completed last November, and from the first hole drilled at Hecla-Kilmer in 2020, HK20-001, for which samples were not submitted at the time.
High-grade vein mineralization with greater than 1% total rare earth oxides (TREO) has now been intersected in 16 of the 21 drill holes completed to date in four drill programs at Hecla-Kilmer, it added.
“The REE critical metal discovery at Hecla-Kilmer has strengthened after each of the four drill programs completed to date,” VR CEO Dr Michael Gunning said in a statement.
READ: VR Resources finds continuous mineralization of rare earth oxides in two drill holes at its Hecla-Kilmer project in Ontario
“The vast majority of the 21 holes completed so far have intersected high-grade veins and vein breccia within broad intervals of alteration which itself contain lower-grade mineralization over hundreds of metres,” Gunning added.
The company noted that drill hole HK22-018 on a north-easterly structure from hole 13 at the Pike Zone interested 2 metres (m) mineralization at 3.72% TREO with 33% PMREO, within 5m at 1.73% TREO with 21% PMREO, above 105m at 0.6% TREO with 18% PMREO at the end of the hole and open to depth.
Drill hole HK20-001, on a south-easterly structure from Hole 13 at Pike Zone, intersected 3m mineralization at 1.87% TREO with 20% PMREO, and 8m at 1% TREO with 19.5% PMREO and open to depth.
PMREO stands for the sum of the high-value rare earth oxides Pr2O3 + Nd203 + Tb2O3 + Dy2O3 used in permanent magnets for wind turbines and electric vehicles. PMREO percentage is equal to the PMREO sum divided by TREO.
Significance:
- The Pike Zone occurs at the intersection of two major structures that cross the 5 x 7 kilometer complex at Hecla-Kilmer;
- The REE intersections in Holes 001 and 018 highlight the potential for higher-grade vein mineralization along strike of these structures, and;
- The continuous mineralization from bedrock surface to 504 m depth in Hole 13, a vertical hole drilled at the structural intersection, underscores the vertical extent of the REE mineral system.
VR said the emerging discovery hinges on:
- The sheer scale of the hydrothermal system, with high-grade mineralization discovered in at least four different areas spanning an area of 2 x 3 km in the western part of the complex, and with no apparent limit to the vertical extent of mineralization beyond 500 metres at Pike Zone;
- A consistently high component of the high-value PMREOs, from 16 – 28% of TREO; and
- Location, both with regard to mineralization coming to bedrock surface at the base of till, and the location of Hecla-Kilmer just 23 km from provincial infrastructure at Otter Rapids.
The company noted that the high proportion of the four permanent magnet rare earth oxides in the new TREO mineralization intersected in Holes 1 and 18 at Pike Zone is worth re-emphasizing.
This ratio is important because of the high value of the PMREOs, including the light rare earths neodymium and praseodymium and the heavy rare earths terbium and dysprosium, in response to the demand for permanent magnets in electric vehicles and wind turbines, it explained.
For comparison, published resources for most Canadian LREE (light rare earth elements) deposits in carbonatite generally contain between 12-15% PMREO, which is roughly 40% lower than the proportion at Hecla-Kilmer.
Next steps planned for the Hecla-Kilmer project in 2023
VR said the REE critical metal discovery at Hecla-Kilmer has progressed continuously since mineralization was first intersected at surface in Hole 4 during the first reconnaissance program in October 2020. Since then, the company has expanded geochemical techniques to include analysis by lithium-borate fusion to optimize the detection of all REEs and utilized QEMSCAN thin section analysis to characterize REE mineralogy.
Going forward, VR said it has commenced a study of mineralized drill core from Holes 13 and 15 using scanning electron microprobe (SEM) technology to determine exactly which minerals host the permanent magnet rare earth elements. Results are anticipated soon, and work will be ongoing through 2023.
VR said it has also completed scoping for metallurgy and mineral extraction studies at the Pike Zone using a bulk sample obtained from core from a dedicated drill hole with a representative, broad intersection of REE mineralization starting at surface. This work is planned for the first half of 2023, utilizing the recognized REE expertise at SGS Lakefield Laboratories in Ontario.
Follow-up drilling is planned for the Spring of 2023. It will focus on supporting the aforementioned advanced-stage metallurgical studies at Pike Zone, and completing additional exploration drill holes on the other three areas of mineralization discovered to date at Hecla-Kilmer.
Overall, the company said the path forward for this emerging discovery is strengthened by its location, just 23 km to the west of the provincial hydroelectric dam at Otter Rapids, with access and support from the active Ontario Northern railroad and Highway 634 infrastructure.
The Hecla-Kilmer complex is located 23 km northwest of the Ontario hydro-electric facility at Otter Rapids, the Ontario Northland Railway, and the northern terminus of Highway 634 which links the region to the towns of Cochrane and Kapuskasing to the south, itself located on the northern Trans-Canada Highway.
The property is large, VR noted, saying it consists of 224 mineral claims in one contiguous block approximately 6 x 7 km in size and covering 4,617 hectares. The property is owned 100% by VR. There are no underlying, annual lease payments on the property, nor are there any joint venture or back-in interests. Hecla-Kilmer is located on provincial crown land, with mineral rights administered by the Ontario Ministry of Northern Development, Mines, Natural Resources and Forestry (MNDM). There are no annual payments, but the MNDM requires certain annual exploration expenditures and reporting. The property falls within the traditional territories of the Moose Cree and Taykwa Tagamou First Nations.
VR Resources is an established junior exploration company focused on greenfields opportunities in critical metals, copper and gold. The company seeks to create value by recognizing the shift in global resource demand related to the emergence of new, sustainable technologies in the transitioning green economy.
Contact the author at stephen.gunnion@proactiveinvestors.com