Parabellum Resources Ltd (ASX:PBL) has delivered more than 2.2 million tonnes of rare earth oxides (REO) in a highly encouraging maiden mineral resource estimate (MRE) for the Khotgor REE Project in Mongolia.
The company’s block model has highlighted a global estimate of 275 million tonnes at 0.91% TREO-Y, including 17 million tonnes at 1.92% and 81.6 million tonnes at 1.34% TREO-Y.
Encouragingly, the MRE demonstrates the ‘large scale and attractive grade’ of the Khotgor project, marking a positive development in the company’s plan to finalise the initial scoping study due in the next quarter.
“Very impressed”
Parabellum chairman Mark Hohnen said: “Parabellum is pleased to report the maiden Khotgor mineral resource estimate to shareholders.
“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.”
Forward plan
With the maiden resource under its belt, during the next 12 months Parabellum will continue to develop a resource database at Khotgor and future mine planning will focus on the higher grade areas of the resource above the 1.5% REO cut-off.
An infill drilling and trenching program is planned for the June and September quarters of 2023 to collect additional samples for the planned definitive feasibility study and infill the early production stages of the project.
SRK identified several potentially useful elements separate from the Khotgor resource estimate which will be followed up in future studies, including some 5.5 million tonnes of phosphorus pentoxide, which could be evaluated as a possible fertiliser product at the DFS stage.
About the project
The Khotgor REE Project is about 530 kilometres south-southwest of Ulaanbaatar and about 65 kilometres north of Dalanzadgad, which is the centre of the South Gobi province of Mongolia.
Parabellum has entered into an agreement with UK-based Temarise Ltd that holds the exclusive option to acquire 80% of the Khotgor Project.
The company now holds 30% of the fully diluted issued capital in Temerise, after opting to pay $A3.9 million across four tranches, which was completed last month.