Heavy Rare Earths Ltd (ASX:HRE) is moving closer to its maiden drilling program at the South Ridge deposit within the Prospect Hill project in South Australia, with key approvals and site preparations advancing ahead of a planned early June start.
The company has submitted an updated Program for Environment Protection and Rehabilitation (PEPR) to South Australia’s Department for Energy and Mining and expects a response in the coming weeks. At the same time, it is working with the Dieri Aboriginal Corporation on a cultural heritage clearance survey scheduled for early May.
A South Australian drilling contractor has also been engaged for the campaign, which is set to comprise about 2,500 metres across up to 24 reverse circulation holes and 5 diamond holes.
“We are moving quickly toward our maiden drill campaign. The updated submission of our PEPR to the Department for Energy and Mining represents a key milestone, and we look forward to receiving a response in the coming weeks. In parallel, our collaboration with the Dieri Aboriginal Corporation on cultural heritage clearance surveys reflects our genuine commitment to respectful and constructive engagement with native title holders," chair of the board, Gabriel Chiappini said.
"With a South Australian drilling contractor now engaged, we have strong confidence in our ability to commence the ~2,500m program at Prospect Hill in early June. While exceptional rainfall across the region has delayed our original early-Q2 timeline, and caused damage to key access roads, conditions have since improved and we anticipate access will be fully
restored in the near term.
South Australia's largest and most advanced tin project remains a flagship asset for HRE, and we look forward to updating shareholders as we use the drill bit to test and build upon historic data and quickly work toward a maiden tin resource estimate at Prospect Hill.”
Resource pathway comes into focus
The planned program is designed to generate the data Heavy Rare Earths needs to move toward a maiden mineral resource estimate at South Ridge.
Prospect Hill is described by the company as South Australia’s largest and most advanced tin project, and South Ridge appears to be the most advanced target within it. Historical work at the prospect includes 56 drill holes and costeaning, which have outlined mineralisation over a 500-metre strike length within a steeply dipping structural zone.
The upcoming drilling will test extensions to the known mineralisation model, while the diamond component is intended to replicate historic percussion holes and provide material for metallurgical testing.
Longitudinal view, looking north, of the South Ridge Prospect interpreted mineralisation model, showing zones of potential mineralisation extension, and drillhole piercement points on surface shown as coloured dots.
That means the program is not just about confirming historic results, but about building the technical foundation required for resource definition and future development studies.
Historic data and strong tin prices support the story
The company believes the prospect has the potential to host a high-grade tin resource, citing historical intersections including 5 metres at 3.22% tin.
Tin prices have risen by nearly 20% year-to-date, driven by supply concerns in major producing jurisdictions including the DRC, Indonesia and Myanmar, as well as continued demand from electronics and electric vehicle markets.
If drilling confirms and expands known mineralisation, the company could be well placed to advance a project into a strong pricing environment.
Weather delays shift timeline, not strategy
The drilling timeline has slipped from the company’s original early-Q2 target after record rainfall across South Australia damaged regional access roads and disrupted exploration activity.
However, Heavy Rare Earths said conditions are improving, repairs are underway and access is expected to be restored in time for the program to begin in late May to early June.
While the delay has pushed back fieldwork, the broader strategy remains unchanged: use the maiden program to validate historic data, extend mineralisation and work toward an initial resource estimate.
What’s next
The next near-term milestones for Heavy Rare Earths are receipt of the PEPR response, completion of the heritage clearance survey and mobilisation to site.
Once drilling begins, investors will be watching for assay results, evidence of mineralisation extending beyond the current model and any indications that South Ridge can support a maiden high-grade tin resource.