Globe Metals & Mining (ASX: GBE) has made a virgin rare earth discovery by analysing results from a limited reconnaissance sampling program at Mount Salambidwe in southern Malawi, southeast Africa.
The sampling has demonstrated for the first time the occurrence of potentially economic grades of both rare earth and specialty metal mineralisation.
The reconnaissance rock chip and soil sampling was undertaken over two days in late 2010 at Salambidwe and returned very positive high values of rare earth oxides (REO).
Rock chip results include:
- 2.05% total rare earth oxides (TREO) including 214 parts per million (ppm) Dysprosium Oxide Powder (Dy2O3); and
- 0.43% TREO, 7,924ppm Niobium pentoxide (Nb2O5), 153ppm Tantalum Pentoxide (Ta2O5) and 2.75% Zirconium oxide (ZrO2).
Results indicate enrichment in the high value heavy rare earth element dysprosium and the high-value light rare earth element neodymium.
The program included four rock chip samples and 41 soil samples taken in the central western area of the alkaline ring complex targeting mainly the central agglomeratic rocks.
Importantly, two of the four samples taken show strong REO and/or niobium, tantalum and zircon mineralisation.
Michael Schultz, regional exploration manager for Africa said, “this reconnaissance program was by design, very limited, however, extremely successful in that it returned results that encourage further work."
"We are now planning an aggressive exploration program to address the potential for significant rare earth and specialty metal deposits.”
Work is to include the reprocessing of recently acquired airborne geophysics, ground based radiometric surveys, detailed geological mapping, and a focussed rock chipping and soil sampling program.
Globe has already established access to this area and is unlikely to encounter the logistical delays experienced at other remote projects, allowing rapid initiation of exploration and delivery of results at Salambidwe.
Rare earth prices continue to rise sarply, with dysprosium oxide spot prices now about $700 USD/kg, an 800% rise over the last three years and Globe are looking to capitalise on this trend.
In April 2011, the company entered into a strategic partnership with East China Minerals Exploration and Development Bureau (ECE), a Chinese State Owned Enterprise with extensive mining operations in China and overseas.
ECE is a key partner for Globe’s growth ambitions in Africa and is now the largest shareholder in Globe.
Globe recently completed A$48 million placement to fund exploration.